Daily Market Report by GulfBrokers 2020-2021

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US dollar edged lower amid rising hopes for the United States would conclude a new stimulus package. The next stimulus agreement could be worth up to $2 trillion and contain more direct payments to U.S. individuals and families. US House Speaker Nancy Pelosi said she remains hopeful of a stimulus agreement this week after speaking with Treasury Secretary Steven Mnuchin on Tuesday. Meanwhile, US President Trump said, “I want to do it even bigger than the Democrats,”

EQUITIES

Wall Street ended higher on Tuesday on growing optimism on the U.S. stimulus deal. The Dow Jones Industrial Average rose 0.4% and the tech-heavy Nasdaq Composite Index advanced 0.3%. While the European stocks are trading lower as investors remain worried about surging coronavirus cases and some parts of Europe imposing renewed lockdown measures.

OIL

Crude oil prices retreated from the tops after weaker-than-expected API inventory data. The data showed 584k barrels of stockpiles were added in the week ending October 16 compared to a draw of 5.42 in the previous release.

CURRENCIES

In the currency market, the Canadian Dollar and Euro surged to fresh monthly high supported by the weaker US dollar. Moving ahead to the North American session the CAD traders are focused on the September CPI and retail sales figures.

GOLD

Gold price appreciates on signs that US lawmakers could agree on a new stimulus package before the November 3 election.

Economic Outlook

On the data front, US building permits rose 5.2% mom to 1.55m annualized rate in September, above the expectation of 1.52m. Housing starts rose 1.9% mom to 1.42m, below expectation of 1.45m.

On the earnings front, Snap Inc (NYSE: SNAP) reported strong quarterly earnings results, and the shares climbed to an all-time high in after-hours trading. On the other hand, Netflix (NASDAQ: NFLX) shares fell more than 5% after the company reported weaker-than-expected Q3 results.

Moving ahead today, the important events to watch:

CANADA – Retail sales and CPI: GMT – 12.30

US – crude oil inventories: GMT – 14.30

Coronavirus update:

Globally, the number of people infected with the coronavirus across the world surpassed 40.7 million, of which at least 1.12 million people have died and 27.91 million have recovered, according to data released by the Johns Hopkins University.

Technical Outlook

GBP/USD:
The British pound trading strong against the US dollar and Euro following positive comments from EU chief Brexit negotiator Michel Barnier. He said the trade deal with London was within reach if both sides are willing to work.

gold neww


The important levels to watch for today: Support- 1.30 and 1.2950 Resistance- 1.3080 and 1.3130.



GOLD: The yellow metal trades steady above $1900 boosted by a weaker dollar. At the time of writing, the gold price trades around $1916.

usdcad


The important levels to watch for today: Support- 1916 and 1908 Resistance- 1928 and 1932.


Quote of the day: Practical investors usually learn their problem is finding enough outstanding investments, rather than choosing among too many – Philip Fisher.

Read more- https://gulfbrokers.com/en/daily-market-report-191
 
Snapchat's parent company Snap Inc (NYSE: SNAP) shares surged more than 20% on Wednesday in pre-market trading after the company reported better-than-expected third-quarter financial results. The Social media company registered a 52% increase in revenue at $679 million in its third quarter. The strong Q3 financial results boosted by an increase in users and improved revenue outlook.

  • Earnings per share: $0.1 vs. -$0.5 expected
  • Revenue: $679 million vs. $555 million expected
The American social media company said its daily active users (DAUs) jumped to 249 million in Q3, versus 238 million in the prior quarter. While the company posted £153.39 million of net loss in the third quarter but that is a 12% improvement from last year’s numbers.

“The adoption of augmented reality is happening faster than we had previously anticipated, and we are working together as a team to execute on the many opportunities in front of us,” Snap CEO Evan Spiegel said. We're excited about the growth of our business in Q3 as we continue to make long-term investments in our future," he added.

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$SNAP closed on Tuesday around $28. The stock hits a new all-time high to $35 almost 24% in after-hours trading following the strong earnings announcement.


Read more- https://gulfbrokers.com/en/snap-stock-hits-all-time-high-today-heres-why
 
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The electric car maker Tesla (NASDAQ: TSLA) reported its fifth consecutive quarterly profit on Wednesday, with revenue of US$8.8 billion. Tesla delivered 139,300 vehicles this quarter, beating the company’s previous record of 112,000 vehicle deliveries in the fourth quarter of 2019. "Achieving this target depends primarily on a quarter over quarter increases in Model Y and Shanghai production," the company said. $TSLA gained 4% in after-hours trading on the strong earnings report and the shares have gained 405% this year.

  • Earnings per share: $0.76 vs. $0.57 expected
  • Revenue: $8.77 billion vs. $8.36 million expected

EQUITIES

Global stocks and US futures trading lower on Thursday amid continuing uncertainty over U.S. coronavirus stimulus. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed to announce a deal on Wednesday, but talks are set to continue on Thursday. Meanwhile, Asian shares declined after the IMF downgraded its growth forecast for Asia-Pacific to a contraction of 2.2% in 2020.

OIL

Crude oil prices extend lower on Thursday following weaker-than-expected EIA inventory data. The data showed US crude oil stockpiles fell by 1,001 million barrels in the week ended October 16th.

CURRENCIES

In the currency market, the US Dollar index slightly recovered from the early session losses. During the previous session, the index fell to a new monthly low after the U.S. President Donald Trump and House Speaker Nancy Pelosi boosted hopes an agreement on stimulus was close.

GOLD

Gold price retreated from the previous session highs after doubts emerged whether an agreement on a new U.S. fiscal coronavirus aid package could be reached before the election.

Economic Outlook

On the data front, the Canadian Consumer Price Index rose 0.5 percent year-on-year in September, above market expectations of 0.4 percent, according to Statistics Canada on Wednesday.

On Wednesday, US Federal Reserve Governor Lael Brainard said that the recovery remains highly uncertain and uneven, emphasizing the need for additional fiscal support.

Moving ahead today, the important events to watch:

US – Initial jobless claims: GMT – 12.30

US – Existing home sales: GMT – 14.00

Coronavirus update:

Worldwide, the number of people infected with the coronavirus surpassed 41.2M, of which at least 1.13M people have died and 28.12M have recovered, according to data released by the Johns Hopkins University. More than 60,000 new COVID-19 cases were reported across the United States on Tuesday, according to a tally from Johns Hopkins University. Canada added 2,668 new cases of the novel Coronavirus while Spain has surpassed 1 million Covid-19 cases on Wednesday.

Technical Outlook

EUR/USD:
The currency pair slightly retreated from the highs after German consumer confidence declined to the lowest since July.

gold neww


The important levels to watch for today: Support- 1.1810 and 1.1780 Resistance- 1.1870 and 1.1910.



GOLD: The yellow metal trading lower as the greenback rebounded across the board. At the time of writing, the gold price trades around $1916.

usdcad


The important levels to watch for today: Support- 1910 and 1900 Resistance- 1920 and 1926.

Quote of the day: Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it – Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-192
 
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Cybersecurity firm McAfee returned to Wall Street on Thursday and it commenced trading on the Nasdaq under the ticker symbol “MCFE”. In this IPO transaction, McAfee sold 37 million shares and raised $740 million in funds. McAfee is an antivirus software provider that provides cyber security solutions for data centers and cloud services.

The stock opened at $18.60, below the $20 IPO price. It then fell further to below $18.50 and closed at 18.70 on Thursday. As per the closing, McAfee's market value is approximately $8 billion.

McAfee, founded in 1987, was one of the pioneers in the development of antivirus software, and in 2011, the company was bought by Intel for $ 7.7 billion and in 2014 renamed Intel Security. But after Intel sold its majority stake to the private equity firm Texas Pacific Group (TPG), the name was restored.

The company has generated $1.4 billion in revenue through June of this year compared to $1.2 billion in the same six months a year ago. Meanwhile, the company currently has $4.8 billion in debt.

“The markets we play in are large, growing and important and we realize there’s a great need for what we bring to the table,” McAfee Chief Executive Officer Peter Leav said. “We are going to invest in our fast-growing consumer business and in our enterprise businesses, where there’s a need for a broader portfolio,” he added.

Read more- https://gulfbrokers.com/en/mcafee-shares-open-below-ipo-price-of-20
 
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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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Gold price surged more than 28% so far this year and hit a new all-time high of $2,074 in August. This year the gold price rally has been driven by a combination of rising coronavirus cases, weakness in the USD, lower interest rates, major geopolitical events such as the tensions between the US and other countries such as North Korea, China, and Iran, and the US election uncertainty.

With just a few days to go before the US presidential election, gold price trades slightly lower. The price dips from the top amid a slightly stronger dollar, as investors continued to follow developments around a fresh US fiscal stimulus. At the moment it appears that Democrats and Republicans are unlikely to agree on a stimulus deal before the November 3 election. Meanwhile, the Federal Reserve Governor, Lael Brainard, said that another stimulus is critical for the economy, as it might be forced into a slower and weaker recovery from the coronavirus, without more aid.

During the last week, the precious metal started on a positive note and climbed to a fresh weekly high of $1931 on signs that US lawmakers could agree on a new stimulus package before the November 3 election. But later the yellow metal failed to break above October highs and retreated back to below the $1900 psychological level following strong US economic data and amid continuing uncertainty over U.S. coronavirus stimulus.

Short-term and long-term technical outlook

Looking at the gold from a very short-term perspective, it is evident that the metal just broke below its short-term support line. In the short term if the price breaks below 1880 which would open doors towards $1860 and below that $1845 is next. On the upper side, the first immediate resistance can be found in $1920 and then 1935/50.

audusd


The below chart plots the long-term view of Gold. Technically the overall movement remained bullish for the gold. The key level remains this year August high as a break above would increase the potential of an extension towards $2500 over the coming months. On the flip side, if the price break below the $1848 level the next support to watch $1810 and $1770.

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Conclusion

US Presidential election will be an important focus and will certainly have a significant impact on gold prices. The other big question is Where could gold prices go after the election? As per the recent polls, the former Vice President Joe Biden still maintains his lead over President Donald Trump in the presidential race, but the race is much closer in the battleground states that will decide the election.

For this week, the main drivers for the precious metal remain the US stimulus negotiations, central bank meetings, the resurgence of coronavirus cases, and the movement of the US dollar.

“From a strictly economic point of view, buying gold in a major inflation and holding it probably presents the least risk of capital loss of any investment or speculation” – henry Hazlitt.

Read more- https://gulfbrokers.com/en/whats-the-next-stop-for-gold
 
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Global markets trading lower on Monday as investors remain concerned about a fresh spike in the number of coronavirus cases and a number of restrictions imposed mainly by European countries. Europe reported more than 1.3 million new cases this past week, its highest single week count yet, according to the World Health Organization. France set a new daily record for coronavirus infections with 52,010 recorded in 24 hours, official data showed Sunday.

Spain has introduced a nationwide curfew — from 11 p.m. to 6 a.m. — as COVID-19 cases shoot up across Europe. Italy also announced several restrictions, including close bars early and shutting gyms and entertainment places. Wales began a 17-day lockdown this weekend, shuttering all nonessential businesses and requiring people to remain home, with few exceptions.

“The pandemic is spreading rapidly again, even faster than at the start of it more than half a year ago,” German Chancellor Angela Merkel.

EQUITIES

Global stocks and US futures fell on Monday due to the lack of progress in stimulus negotiations and surging coronavirus cases in Europe and the United States.

OIL

Crude oil prices dropped to a fresh weekly low on Monday amid mounting concerns of a slower recovery in the fuel demand due to the renewed lockdown measures in the United States and Europe. This week the Oil investors continue to follow the new updates from the stimulus talks and oil inventory report.

CURRENCIES

In the currency market, the EURO fell to a new session low as the greenback rebounded across the board and weaker-than-expected German IFO data.

GOLD

Gold price started the new week on a bearish note after the corrective growth of USD. The main drivers for the precious metal remain the US stimulus negotiations, central bank meetings, the resurgence of coronavirus cases, and the movement of the US dollar.

Economic Outlook

On the data front, the German IFO business climate index came in at 92.7, from 93.2 in September. While the current assessment component improved for the fifth month in a row to 90.3, from 89.2.

Moving ahead to the North American session, the investor's main focus remains the US stimulus headlines. During the weekend, House Speaker Pelosi stated that there is still some hope for a stimulus deal before the election. She stated, "I never give up hope. I am optimistic. We put pen to paper and had been writing the bill based on what we hope will be the outcome, what they said they would get back to us on".

Coronavirus update:

According to Johns Hopkins University, the global coronavirus cases stands at more than 42.7 million. More than 1.1 million people have died, while more than 28.8 million have recovered.

Technical Outlook

EUR/USD:
The currency pair rebounded back to above 1.1825 after fell to a fresh weekly low of 1.1800 during the Asian session.

euraud


The important levels to watch for today: Support- 1.1800 and 1.1780 Resistance- 1.1840 and 1.1880.



GOLD: The yellow metal slightly rebounded from the Asian session lows. At the time of writing, the gold price climbed back to above $1900 area.

gold neww


The important levels to watch for today: Support- 1900 and 1890 Resistance- 1910 and 1920.



Quote of the day: One of the many funny things about the stock market is that every time one person buys, another sells, and both think they are astute-William Feather.
 
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