DAILY MARKET REPORT - Friday, Dec 11, 2020

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After the phenomenal listing of US food-delivery firm DoorDash. On Thursday, the home-rental company Airbnb made a spectacular debut on NASDAQ under the symbol ABNB. The $ABNB surged from its IPO price of $68 to closing of $144.71 on Thursday, up by 113% from the offer price. The company's market value ($ 86.5 billion) makes it the largest player in the online travel sector.

“I don’t think I am going to worry much more, in April and May when we saw our business drop 80% in 8 weeks in the middle of the pandemic. I am so grateful to be here today, so fortunate and I wouldn’t be here for all the people who helped us, our guests, our hosts and everyone that has helped build Airbnb.” Airbnb CEO, Brian Chesky said.

Airbnb reported last quarter net profit of $US219 million ahead of its listing, as it cut its costs, but it expects a decline in bookings and a rise in cancellations during the fourth quarter.


EQUITIES

European and UK stocks trading lower on Friday following the negative comments from UK prime minister Boris Johnson. He said there was "a strong possibility" Britain and the EU would fail to strike a trade deal. Boris will meet European Commission President Ursula von der Leyen again on Sunday after Wednesday's trade talks ended with no breakthrough for a trade agreement.

OIL

Crude oil prices climbed to fresh weekly highs boosted by the positive vaccine news. The price of Brent crude reached more than $US50 a barrel for the first time since oil prices slumped in March.

CURRENCIES

In the currency market, the Australian dollar climbed to 2.5 years high on Friday. The recent bullish rally supported by the weaker dollar and strong crude oil price. Meanwhile, the British pound slipped to a fresh session low of 1.3242 after post-Brexit trade talks were extended to the weekend.

GOLD

Gold prices struggling to find the upside momentum after an advisory panel to the US FDA recommended approval of Pfizer’s COVID vaccine for emergency use.

Economic Outlook

On the data front, the US Labor Department said its consumer price index rose 0.2per cent in November after being unchanged in October. While the US initial jobless claims had surged last week by 137,000 to 853,000, while analysts expected an increase to 725,000.

On Thursday, European Central Bank holds interest rates at historic lows and the central bank will extend its bond-buying program by 9 months and add 500 bill euro to pandemic bond purchases.

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 70 million. The United States has passed 15.3 million confirmed cases, with more than 289,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair retreated back to near 1.2100 zones on Friday after the pair failed to break last weekly highs of 1.2175.

eurusd


The important levels to watch for today: Support- 1.2110 and 1.2080 Resistance- 1.2150 and 1.2175.

GOLD: The gold price hovers near the $1830 level on Friday. Overall, the momentum remains bearish throughout the European session.

gold neww


The important levels to watch for today: Support- 1825 and 1818 Resistance- 1842 and 1850.

Quote of the day: Stick to your investment strategy, do not turn temporary declines into permanent losses- Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-227
 
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