DAILY MARKET REPORT - Friday, Oct 23, 2020

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US Airline companies American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) reported third-quarter financial results on Thursday. Both the airline company shares closed higher on Thursday after narrower than expected earnings. American Airlines' stock climbed 3% higher while Southwest Airlines shares surged more than 5%. On the other hand, the airline companies waiting for the new package of economic relief, but Congress has yet to agree on a deal with the White House.

"We are encouraged by modest improvements in leisure passenger traffic trends since the slowdown in demand experienced in July," Southwest Airlines CEO Gary Kelly said.

EQUITIES

Wall Street closed higher on Thursday boosted by strong US employment claims numbers and on hopes that a U.S. stimulus package would eventually be passed. U.S. House Speaker Nancy Pelosi said on Thursday the Democrats and the White House continued to make progress toward an agreement on a new stimulus bill, it will "take a while to write the bill."

OIL

Crude oil prices remain under pressure as investors concern about fuel demand recovery as rising coronavirus cases led to renewed restrictions in several countries across the globe.

CURRENCIES

In the currency market, the EURO slightly recovered from the early session losses after better-than-expected German and Eurozone economic data. Eurozone Manufacturing PMI increased to 54.4 in October of 2020 from 53.7 in September, beating market forecasts of 53.1.

GOLD

Gold price dropped to below $1900 on Thursday following strong US employment and existing Home Sales data. The US existing Home Sales rose to 6.54M, against the anticipated 6.20M.


Economic Outlook


On the data front, New Zealand CPI on a quarterly basis rose 0.7% in Q3, below expectations of 0.9% gain but above the previous reading of -0.5%, while CPI on yearly basis rose 1.4% in Q3, below expectations of 1.7% and previous reading of 1.5%.

On Thursday, the US released the latest jobless claims data. According to the department of labor, the unemployment claims for the previous week dropped to 787K, against the projected 860K

Coronavirus update:

The global coronavirus pandemic has now infected more than 40 million people and claimed over 1 million lives. The Czech Republic daily confirmed cases reached 14,151 on Thursday, after the record of almost 15,000 the day earlier. Meanwhile, American biopharmaceutical company Gilead Sciences’ antiviral drug remdesivir was approved by the US Food and Drug Administration as a treatment for coronavirus.

Technical Outlook

EUR/USD:
The currency pair slightly rebounded from the early session lows after strong PMI data. At the time of writing, the pair trading above 1.1840.

euraud


The important levels to watch for today: Support- 1.1780 and 1.1760 Resistance- 1.1840 and 1.1880.



GOLD: The yellow metal rebounded from the previous session lows. At the time of writing, the gold price trading above the $1900 psychological level.

gold neww


The important levels to watch for today: Support- 1900 and 1890 Resistance- 1918 and 1926.

Quote of the day: There are a million ways to make money in the markets. The irony is that they are all difficult to find- Jack D. Schwager.

Read more-https://gulfbrokers.com/en/daily-market-report-193
 
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