Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

The Great British pound rebounded against the US dollar, Euro, and the Japanese yen on Monday ahead of the Bank of England monetary policy decision. The BOE will announce its latest decision on monetary policy on Thursday, Feb 03. Several market participants anticipate that the central bank expected to raise interest rates by 0.25% in its Feb meeting.

At its last meeting on December 16, 2021, the central bank increased its key policy rate by 15bps to 0.25% to control inflation. The move was approved by eight out of nine members of the monetary policy committee. The surprise move came just after the official rate of inflation reached 5.1%, the highest rate recorded in the last decade.

“The committee continues to judge that there are two-sided risks around the inflation outlook in the medium term, but that some modest tightening of monetary policy over the forecast period is likely to be necessary to meet the 2 per cent inflation target sustainably,” the Bank of England said in the last meeting.

GBPUSD trades above 1.3440 on Monday, the currency pair recovered more than 80 pips from the previous week lows. Technically the overall momentum remains mixed. On the downside, 1.3350 is the crucial support area to watch. If the pair breaks below the 1.3350, the slump will quickly extend toward the 1.3290/70 marks. On the upper side, the first immediate resistance is around 1.3480 and then 1.3530/50.

Read the original report here- https://gulfbrokers.com/en/gbp-rebounds-focus-shifts-to-the-boe-decision

 

[syamfx2020]

Vaccine stocks Novavax (NASDAQ: NVAX) and Moderna (NASDAQ: MRNA) jumped on Monday. Novavax shares closed 13% higher after the company submits a request to the U.S. FDA for emergency use authorization of COVID-19 Vaccine. The vaccine has shown an overall efficacy of 90% in clinical trials.

“We believe our vaccine offers a differentiated option built on a well-understood protein-based vaccine platform that can be an alternative to the portfolio of available vaccines to help fight the Covid-19 pandemic,” Novavax CEO, Stanley Erck said.

Moderna stock climbed almost 7% on Monday after the company announced that U.S. health regulators granted full approval to its COVID-19 vaccine. The vaccine will be marketed under the name Spikevax, is approved for people aged 18 years or older.

EQUITIES

European shares and US stock futures started the new month on a positive note after positive vaccine news. The upside momentum is also supported by the mixed comments from Fed policymakers.

On the earnings front, AMD, GM, PAYPAL, STARBUCKS and ALPHABET are amongst those reporting the last quarter financial results today.

OIL

Crude oil futures struggling to hold the upside momentum ahead of the OPEC meeting on Wednesday. On the other hand, the buying pressure remains driven by geopolitical tensions in Eastern Europe and the Middle East.

CURRENCIES

In the currency market, the British pound trades near the session high against the US dollar as the investors anticipate that the Bank of England is widely expected to raise interest rates again on Thursday.

GOLD

The safe-haven metal rebounded back to above $1800 on Tuesday after the greenback retreats from the highs. The US dollar index reached an 18-month high last week.

Economic Outlook

On the data front, the Reserve Bank of Australia decided to keep rates at 0.1% and called an end to its bond-buying program, as widely expected. “The board is committed to maintaining highly supportive monetary conditions to achieve its objectives of a return to full employment in Australia and inflation consistent with the target,” RBA governor Philip Lowe said in a statement on Tuesday.

Moving ahead today, the important events to watch:

US – ISM manufacturing PMI: GMT – 15.00

US – JOLTS job openings: GMT – 15.00

Coronavirus update:

Worldwide, more than 375 million people have been confirmed infected and more than 5.66 million have died. The United States has confirmed over 74 million cases and has had more than 880,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: For today, the resistance for the pair is above 1.1280, any break over targets 1.1320 minimum. On the other side, the immediate support is near 1.1220 and any break will drag the pair to 1.1180 and 1.1150 levels.

The important levels to watch for today: Support- 1.1220 and 1.1200 Resistance- 1.1270/80 and 1.1320.

GOLD: For today, the resistance for Gold is around 1808 then 1815. On the other side, the immediate support is near $1796, and any break will drag the metal to 1790/87 levels.

The important levels to watch for today: Support- 1798 and 1794 Resistance- 1808 and 1815.

Quote of the day - The markets generally are unpredictable, so that one has to have different scenarios. The idea that you can actually predict what’s going to happen contradicts my way of looking at the market. – George Soros.

 

[syamfx2020]

Google-parent Alphabet (NASDAQ: GOOGL) stock spiked 9% in after-hours trading following the release of strong Q4 earnings. The Q4 revenue increased by 32% from the year earlier.

EPS: $30.69 $27.34 expected

Revenue: $75.33B $72.17B expected

“Our deep investment in AI technologies continues to drive extraordinary and helpful experiences for people and businesses, across our most important products,” Alphabet CEO, Sundar Pichai said.

 

[syamfx2020]

Crude oil futures hover near the multi-year high as the oil investors and traders wait for the final outcome on the OPEC+ alliance's production plan for March. The OPEC meeting is expected to start at 2 PM Vienna time today. During the last OPEC meeting, the members decided to continue with its current program into February. Several market participants anticipate the Organisation of the Petroleum Exporting Countries, and its allies (OPEC+) is set to stick with a planned 400,000 bpd production increase for March.

EQUITIES

US futures edged up Tuesday boosted by the upbeat earnings results from the tech giants Alphabet and AMD. Alphabet (NASDAQ: GOOGL) stock spiked 9% in after-hours trading following the release of strong Q4 earnings. The Q4 revenue increased by 32% from the year earlier. Meanwhile, the PayPal shares dropped more than 15% in after-hours trading after the company missed earnings expectations.

On the earnings front, Spotify, Facebook, Qualcomm, and T-Mobile are amongst those reporting the last quarter financial results today.

OIL

Crude oil futures trades flat ahead of the OPEC meeting decision. On the other hand, the investors also waiting for the release of API and EIA inventory reports.

CURRENCIES

In the currency market, the Australian dollar extended gains and remains one of the strongest currency pairs of the week. The recent upside momentum was boosted after the Reserve bank of Australia governor Philip Lowe acknowledged for the first time the possibility of a rate hike this year.

GOLD

The safe-haven metal retreat back to below $1800 after the metal failed to hold the upside momentum. Overall, the movement remained bearish throughout the Asian session.

Economic Outlook

On the data front, the US released the ISM PMI data on Tuesday. The data showed the PMI Manufacturing Price Index dropped to 57.6 in January from 58.8 in December. While the US Manufacturing PMI came at 55.5, slightly up than the 55.0 estimated.

Moving ahead today, the important events to watch:

Eurozone – CPI: GMT – 10.00

US – ADP employment report: GMT – 13.15

Coronavirus update:

Worldwide, more than 375 million people have been confirmed infected and more than 5.66 million have died. The United States has confirmed over 74 million cases and has had more than 880,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

DOLLAR INDEX: The index remains under pressure for the third consecutive day. Moving ahead to the North American session, the USD traders should closely monitor the release of the U.S. ADP employment report.

The important levels to watch for today: Support- 96.00 and 95.80 Resistance- 96.40 and 96.70.

GOLD: For today, the resistance for Gold is around 1807 then 1815. On the other side, the immediate support is near $1794, and any break will drag the metal to 1787/1782 levels.

The important levels to watch for today: Support- 1794 and 1782 Resistance- 1804 and 1808.

Quote of the day - “The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.” ― Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-442

 

[sebking1986]

Lots of good news coming from the large cap companies which is helping to buoy the market again after the recent dip.

 

[sebking1986]

I wouldn't be surprised to see rates hike again either. A necessary evil at the moment to try and slow this inflation.

 

[Keith201]

View attachment 73545
Crude oil futures hover near the multi-year high as the oil investors and traders wait for the final outcome on the OPEC+ alliance's production plan for March. The OPEC meeting is expected to start at 2 PM Vienna time today. During the last OPEC meeting, the members decided to continue with its current program into February. Several market participants anticipate the Organisation of the Petroleum Exporting Countries, and its allies (OPEC+) is set to stick with a planned 400,000 bpd production increase for March.

EQUITIES

US futures edged up Tuesday boosted by the upbeat earnings results from the tech giants Alphabet and AMD. Alphabet (NASDAQ: GOOGL) stock spiked 9% in after-hours trading following the release of strong Q4 earnings. The Q4 revenue increased by 32% from the year earlier. Meanwhile, the PayPal shares dropped more than 15% in after-hours trading after the company missed earnings expectations.

On the earnings front, Spotify, Facebook, Qualcomm, and T-Mobile are amongst those reporting the last quarter financial results today.

OIL

Crude oil futures trades flat ahead of the OPEC meeting decision. On the other hand, the investors also waiting for the release of API and EIA inventory reports.

CURRENCIES

In the currency market, the Australian dollar extended gains and remains one of the strongest currency pairs of the week. The recent upside momentum was boosted after the Reserve bank of Australia governor Philip Lowe acknowledged for the first time the possibility of a rate hike this year.

GOLD

The safe-haven metal retreat back to below $1800 after the metal failed to hold the upside momentum. Overall, the movement remained bearish throughout the Asian session.

Economic Outlook

On the data front, the US released the ISM PMI data on Tuesday. The data showed the PMI Manufacturing Price Index dropped to 57.6 in January from 58.8 in December. While the US Manufacturing PMI came at 55.5, slightly up than the 55.0 estimated.

Moving ahead today, the important events to watch:

Eurozone – CPI: GMT – 10.00

US – ADP employment report: GMT – 13.15

Coronavirus update:

Worldwide, more than 375 million people have been confirmed infected and more than 5.66 million have died. The United States has confirmed over 74 million cases and has had more than 880,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

DOLLAR INDEX: The index remains under pressure for the third consecutive day. Moving ahead to the North American session, the USD traders should closely monitor the release of the U.S. ADP employment report.

The important levels to watch for today: Support- 96.00 and 95.80 Resistance- 96.40 and 96.70.

GOLD: For today, the resistance for Gold is around 1807 then 1815. On the other side, the immediate support is near $1794, and any break will drag the metal to 1787/1782 levels.

The important levels to watch for today: Support- 1794 and 1782 Resistance- 1804 and 1808.

Quote of the day - “The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.” ― Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-442

Thanks for sharing mate always makes an interesting read

 

[syamfx2020]

“2021 was an outstanding year for AMD with record annual revenue and profitability,” AMD CEO, Lisa Su said.

The stock of Advanced Micro Devices (NASDAQ: AMD) jump 12% in pre-market trading on Wednesday after the chipmaker posted stronger-than-expected fourth-quarter revenue and earnings results.

• Earnings per share (EPS) $0.92 vs. $0.76 expected
• Revenue $4.83 Billion vs. $4.52 Billion expected

AMD reported strong revenue growth boosted by Ryzen and Radeon product sales. The fourth-quarter revenue rose 49% year over year to $4.83 billion in the last quarter and a 12% increase compared to $4.313 billion in the previous quarter. The company’s net income rose 67% to $2.43 billion compared to the same period last year.

“We saw strong demand for premium AMD notebooks and our higher-end desktop CPUs in the quarter as Ryzen 5000 processor unit shipments grew by a double-digit percentage sequentially,” Lisa Su said.

AMD’s stock price jumped more than 12% to $130 in pre-market trading, but the shares are down almost 20% since the start of the year. If the bullish momentum continues the next upside levels to watch $135 and $141. On the downside, the immediate support is around $118.

Read more- https://gulfbrokers.com/en/amd-stock-jump-12-on-strong-revenue-growth

 

[sebking1986]

Whole stock market appears to have been doing nicely this week to be fair for the same reason with other large cap companies.

 

[syamfx2020]

The two major central banks, the Bank of England and the European Central Bank are scheduled to hold important monetary policy meetings later today.

The Bank of England expected to raise interest rates by 0.25% at its meeting today. Meanwhile, the ECB is expected to leave interest rates unchanged, but investors will be looking for the ECB stance on rising inflation. The recent data showed the Eurozone inflation edged higher to a fresh record high of 5.1% in January of 2022.

EQUITIES

Wall Street closed higher on Wednesday supported by strong earnings results from the tech giant Google-parent Alphabet and the chipmaker Advanced Micro Devices. While later the Nasdaq futures retreat from the weekly highs following the release of weak earnings results from the Facebook-parent Meta Platforms.

On the earnings front, Amazon, Ford, Snap, and Honeywell are amongst those reporting the last quarter financial results today.

OIL

Crude oil futures trading lower on Thursday after OPEC and allies decided to continue with moderate rises of 400,000 barrels per day of oil output on Wednesday. On the other hand, the EIA crude inventories fell by 1.046 million barrels in the week ended January 28th.

CURRENCIES

In the currency market, The US Dollar Index, which measures the greenback’s value against the basket of six major currencies slightly rebounded from the previous session losses. The Euro and British pound traded flat against the US dollar ahead of the central bank meetings in Europe and Britain.

GOLD

The safe-haven metal ended higher on Wednesday driven by the weaker-than-expected US ADP employment data. At the time of writing, the metal trades were above $1804.

Economic Outlook

On the data front, US nonfarm private employment fell by 301,000 jobs in January, the first decline since December 2020,

Moving ahead today, the important events to watch:

UK – BOE Interest rate decision and statement: GMT – 12.00

Eurozone – ECB Interest rate decision and statement: GMT – 12.45

US – ISM Services PMI: GMT – 15.00

Coronavirus update:

Worldwide, more than 380 million people have been confirmed infected and more than 5.69 million have died. The United States has confirmed over 75 million cases and has had more than 885,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: For today, the first nearest support level is located at 1.1260. If it breaks below this level, it will head towards the next support level which is located at near 1.1220 then 1.1180.

The important levels to watch for today: Support- 1.1270 and 1.1180 Resistance- 1.1345 and 1.1390.

GOLD: in the short-term perceptive, the immediate bias will remain bullish as long as prices are held above $1800. On the flip side, any break below $1794 then the next support near the $1786 followed by $1782 level.

The important levels to watch for today: Support- 1800 and 1793 Resistance- 1808 and 1814.

Quote of the day - "To win in the markets, we need to master three essential components of trading: Sound psychology, a logical trading system, and an effective risk management plan.”

Read more- https://gulfbrokers.com/en/daily-market-report-443