Daily Market Report by GulfBrokers 2020-2021

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Eurozone, Germany, and UK September service PMI data reported better-than-expected. Moving ahead to the North American session, the US will release the latest ISM non-manufacturing PMI figures.

  • UK services PMI – Actual: 56.1 Forecast: 55.1 Previous: 58.8

  • Eurozone services PMI - Actual: 48.0 Forecast: 47.6 Previous: 50.5

  • Germany Services PMI - Actual: 50.6 Forecast: 49.1 Previous: 52.5
EQUITIES

Global stocks and US futures trading steady on Monday boosted by news that US President Donald Trump could be discharged from the hospital where he is being treated for COVID-19 as soon as today. The markets in China remain closed for the National Day holiday.

OIL

Crude oil prices rebounded from the early session lows on optimism around Trump’s health and growing concerns over the demand outlook. The prices also supported by an escalating workers’ strike in Norway that has shut four of Equinor’s oil and gas fields.

CURRENCIES

In the currency market, the Australian dollar trading strong ahead of the Reserve Bank of Australia meeting tomorrow. On the other hand, EUR/USD climbed to fresh weekly high after strong Eurozone retail sales data and better-than-expected PMI figures.

GOLD

Gold price surged back to the $1900 zone on Monday ahead of US ISM – manufacturing data. During the last week, the yellow metal climbed more than 2% supported by the weaker dollar and economic uncertainties.

Economic Outlook

On the data front, Eurozone's retail sales jumped 4.4% month-on-month in August for a 3.7% year-on-year gain, beating economists’ expectations of a 2.4% monthly and a 2.2% annual increase.

On Friday, US non-farm payrolls fell short of expectations with 661K jobs gained - well below the 900K expected. The unemployment rate was also a surprise, falling from 8.4% to 7.9%.

Coronavirus update:

The number of people infected with the coronavirus across the world hit 35.22 million, of which at least 1.04 million people have died and 24.52 million have recovered, according to data released by the Johns Hopkins University. The United States is the worst-affected country, with more than 7.4 million diagnosed cases and at least 209,725 deaths.

Technical Outlook

EUR/USD:
The currency pair trades above 1.1750 during the European session after better-than-expected Eurozone and German economic data.

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The important levels to watch for today: Support- 1.1710 and 1.1680 Resistance- 1.1775 and 1.1800.

GOLD: The yellow metal price hovers near the $1900 zone. This week gold traders waiting for the minutes from the last FED meeting and comments from the Fed Chair Jerome Powell and ECB’s Christine Lagarde.

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The important levels to watch for today: Support- 1890 and 1880 Resistance- 1904 and 1914.

Quote of the day: n many ways, the stock market is like the weather in that if you don’t like the current conditions all you have to do is wait a while.

Read more- https://gulfbrokers.com/en/daily-market-report-179
 
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Cineworld (LON: CINE) shares plunged more than 50% on Monday after the company announced its temporary closure of 127 Cineworld and Picture house cinemas in the UK from Thursday, Oct 8 and 500 Regal cinemas in the US due to the pandemic. The closures will impact approximately 45,000 employees, including 5,500 employees in the UK and 20,000 in the US.

"As major US. markets, mainly New York, remained closed and without guidance on reopening timing, studios have been reluctant to release their pipeline of new films,” the world’s second-biggest cinema chain said in a statement.

"This is not a decision we made lightly, and we did everything in our power to support safe and sustainable reopening’s in all of our markets - including meeting, and often exceeding, local health and safety guidelines in our theatres and working constructively with regulators and industry bodies to restore public confidence in our industry” Mooky Greidinger, CEO of Cineworld said.



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The stock plummeted as such as 56% after the announcement. At the time writing, the share price slightly rebounded from the early session lows and trades around 24.


Read more- https://gulfbrokers.com/en/cineworld-dips-50-after-decision-to-close-its-uk-and-us-cinemas
 
Important economic events this week: RBA rate decision, Fed meeting minutes, UK GDP and US jobless claims.

Earnings to watch: Levis and Domino's

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Reserve Bank of Australia kept the cash rate unchanged at a record low of 0.25% during its October meeting. The central bank said the decision was based on the uneven recovery of the global economy due to the coronavirus. The RBA also kept its target yield for three-year government bonds at that same level.

"The global economy is gradually recovering after a severe contraction due to the pandemic. However, the recovery is uneven, and its continuation is dependent on containment of the virus," RBA Governor Philip Lowe said.

EQUITIES

US futures trading steady on Tuesday after U.S. President Donald Trump was discharged from hospital following treatment for COVID-19 and hopes of a new US stimulus package. On Monday, the Dow Jones Industrial Average gains 1.68%, while the S&P 500 climbs 1.8%.

OIL

Crude oil prices surged higher supported by the evacuation of oil platforms in the US Gulf of Mexico ahead of Tropical Storm Delta and positive reports about President Donald Trump's health.

CURRENCIES

In the currency market, the EURO climbed to near 1.1800 area boosted by upbeat German factory orders and Eurozone retail sales data. On the other hand, the Australian dollar fell after the RBA left its cash rate at a record low.

GOLD

Gold price slightly retreated from the highs. Moving ahead to the North American session the gold traders are focused on the speech by the US Fed Chairman Jerome Powell. He will speak about the economic outlook later in the day.

Economic Outlook

On the data front, ISM Services PMI in the US in September rose from 56.9 to 57.8 points against the forecast of a decline to 56.3 points. Meanwhile, UK Construction PMI rose to 56.8 in September 2020, up from 54.6 in the previous month and well above market expectations of 54.0.

US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin plan to speak again on Tuesday about the new coronavirus aid bill.

Coronavirus update:

After just three nights being treated for COVID-19, US President Donald Trump was discharged from the hospital. Global coronavirus cases have reached 35,485,738, according to Johns Hopkins University in Baltimore. The worldwide death toll has hit 1,044,085. The United States has passed 7.4 million confirmed cases, with over 209,000 deaths from COVID-19, the highest numbers in the world. India reports a spike of 61,267 new Covid cases & 884 deaths in the last 24 hours.

Technical Outlook

GBP/USD:
The currency pair slightly retreated from the daily tops. At the time of writing, the British Pound hovers near 1.2980.

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The important levels to watch for today: Support- 1.2970 and 1.2940 Resistance- 1.3035 and 1.3080.



GOLD: The yellow metal trades steady above $1900, during the previous session the gold price failed to break above the previous week highs.

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The important levels to watch for today: Support- 1906 and 1900 Resistance- 1918 and 1926.

Quote of the day: Successful investing is anticipating the anticipations of others – John Maynard Keynes.


Read more- https://gulfbrokers.com/en/daily-market-report-180
 
Chinese fintech and payments giant the Ant Group is going to IPO in October. It aims to raise up to $35 billion in Hong Kong and Shanghai at over a $200 billion valuation. Ant’s IPO could surpass Saudi Aramco’s US$29.4 billion IPO last December as the largest ever.

Ant is the parent company of Alipay. Alipay is China’s leading mobile and e-commerce payment system, the scale of Alipay is simply mind-boggling – 711 million monthly active users, 80 million monthly active merchants, and more than 2000 partner financial institutions. The Ant Group also operates one of the world’s largest money market funds and runs Zhima Credit, commonly known as Sesame Credit, a credit-rating system.

What makes Ant IPO so unique?​

  • Ant enjoys a very strategic and synergistic relationship with the e-commerce giant, Alibaba. Alibaba has a 33% stake in Ant through its subsidiaries. “We, together with Alibaba, are building the infrastructure for commerce and services,” Jack Ma "has ultimate control over our Company," Ant said in its filing.
  • Ant Bank, part of Ant Group, has officially launched to offer banking services to Hong Kong citizens, this launch makes it the 6th virtual bank to launch their services in Hong Kong. AlipayHK users will be able to open an Ant Bank account remotely through Ant Bank’s Mini App in their existing e-wallet app.
  • As per the recent report, Singapore’s sovereign wealth fund GIC Pte plans to invest more than $1 billion in Ant Group’s initial public offering.
  • From the Ant Group’s Prospectus, for the half-year ended 30 June 2020, the company net profit has risen to RMB 21.9bn, realizing growth of 1,158.7% compared to the same period last year.

Read more- https://gulfbrokers.com/en/ants-ipo-could-surpass-saudi-aramco
 
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US President Donald Trump on Tuesday ordered a stop to negotiations with Democrats. He said he plans to pass a “major stimulus bill” if he is re-elected on Nov. 3.

“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.” tweeted the president.

"The president turned his back on you," Trump's Democratic rival, former Vice President Joe Biden.

EQUITIES

Wall Street ended lower on Tuesday after Trump tweets he will delay stimulus talks. The S&P 500 fell 1.4%, while the Dow Jones Industrial Average dropped 1.3% and the Nasdaq Composite slid 1.6%. Meanwhile, Australian shares traded higher on Wednesday after the government released its budget, which contains billions in spending initiatives and tax cuts.

OIL

Crude oil prices trading lower on Wednesday after weaker-than-expected API inventory data and negative comments from US President Donald Trump. On the other hand, In Norway, the Lederne labor union said on Tuesday it will expand its ongoing oil strike from Oct. 10 unless a wage deal can be reached in the meantime. Six offshore oil and gas fields shut down on Monday as Lederne ramped up its strike, cutting the country’s output capacity by 8%.

CURRENCIES

In the currency market, the EURO slightly rebounded from the previous session lows. On Tuesday, European Central Bank (ECB) President Christine Lagarde said that Europe’s recovery looks more sluggish as the second wave of the pandemic knocks on the door.

GOLD

Gold price trading lower ahead of FOMC minutes. During the previous session, the yellow metal fell after the US dollar rebounded from the two weeks low.

Economic Outlook

On the data front, German industrial production unexpectedly contracted 0.2% in August, compared to forecasts of a 1.5% rise.

Moving ahead today, the important events to watch:

US – Crude oil inventories: GMT – 14.30

US – FOMC meeting minutes: GMT – 18.00

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 35.8 million, of which at least 1.04 million people have died and 24.98 million have recovered, according to data released by the Johns Hopkins University. Brazil has registered 41,906 new cases, the highest single-day number since September 11.

Technical Outlook

EUR/USD:
The currency pair rebounded back to above 1.1750 after fell to a fresh weekly low of 1.1720 on Tuesday.

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The important levels to watch for today: Support- 1.1720 and 1.1680 Resistance- 1.1780 and 1.1810.



GOLD: The yellow metal rebounded from early session losses. During the European session, the gold price climbed back to near $1900 zone.

audusd


The important levels to watch for today: Support- 1880 and 1875 Resistance- 1896 and 1905.



Quote of the day: If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks – John C Bogle.

Read more- https://gulfbrokers.com/en/daily-market-report-181
 
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The stock market continues to be volatile going up and down. On Wednesday, Wall Street ended higher after President Trump appeared to soften his stance on a further stimulus package for American households, airlines, and small businesses. On Tuesday, the stocks fell following President Trump decided to halt stimulus talks until after the November 3rd presidential election.

EQUITIES

Global stocks trading higher on Thursday after Wall Street closed higher overnight. US stocks ended higher on renewed optimism that U.S. lawmakers could still reach an agreement on additional stimulus. UK stocks traded higher on Brexit optimism, as both the UK and the EU pledged to reach an agreement on their future relationship by October 15th. While Britain is set to abandon talks if no progress is made by October 15, when the EU Summit begins.

OIL

Crude oil prices rebounded from the early session lows as oil workers in the US Gulf Coast evacuated 183 offshore oil platforms and halt nearly 1.5 million barrels per day of output as Hurricane Delta approaches the region. On Wednesday, Oil price ended slightly lower after the data showed an increase in crude stockpiles last week.

CURRENCIES

In the currency market, the New Zealand dollar hits fresh weekly low on Thursday after the RBNZ Assistant Governor said that the bank continues to work actively on negative interest rates and funding for lending programs.

GOLD

Gold price trading steady on Thursday supported by the weaker dollar and a resurgence in virus cases in Europe and some US states.

Economic Outlook

On the data front, the German trade surplus shrunk to €15.7 billion during August, with Imports expanding nearly 6% and Exports rising by 2.4%.

On Wednesday, the minutes of the September FOMC reported that the committee is ready to consider changes to its asset purchases. The Fed believes that aggressive monetary and fiscal policy is needed to keep the recovery going strong as market participants still see significant risks ahead.

Moving ahead today, the important events to watch:

EUROZONE – ECB Monetary Policy Meeting minutes: GMT – 11.30

US – Initial jobless claims: GMT – 12.30

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 36.1 million, of which at least 1.05 million people have died and 25.2 million have recovered, according to data released by the Johns Hopkins University. The highest number of infections (7,544,612) is recorded in the US, followed by India (6,757,131) and Brazil (4,969,141).

Technical Outlook

EUR/USD:
The currency pair trading steady ahead of ECB meeting minutes. At the time of writing, the EURO trades above 1.1760.

cruse


The important levels to watch for today: Support- 1.1720 and 1.1680 Resistance- 1.1795 and 1.1820.

GOLD: The yellow metal trades sideways after it dropped by almost 2% in the previous session.

audusd


The important levels to watch for today: Support- 1880 and 1865 Resistance- 1896 and 1904.

Quote of the day: The best investing advice should be easy to understand and stand the tests of time – Phil Town.

Read more- https://gulfbrokers.com/en/daily-market-report-182
 
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