Daily Market Report by GulfBrokers 2020-2021

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EUR/USD trading below 1.1600 ahead of the key European Central Bank (ECB) monetary policy decision. The investors waiting for the ECB's stance on rising inflation and any hints on when the bank might start raising historically low-interest rates.

EQUITIES

Wall Street ended lower on Wednesday despite better-than-expected US durable goods orders and robust Q3 earnings results. On the earnings front, Apple, Amazon, Shopify, Merck, and Starbucks are amongst those reporting the last quarter financial results today.

OIL

Crude oil prices slightly recovered from the early session while the overall momentum remains bearish. The oil prices extend losses to a fresh weekly low on Thursday morning session driven by the unexpected rise in inventories in the United States. The recent EIA data showed crude inventories rose by 4.3 million barrels last week.

CURRENCIES

In the currency market, the Japanese yen remains steady against the US dollar and Euro after the Bank of Japan’s monetary policy decision. BOJ maintained its target for short-term interest rates at -0.1% and projected inflation at well below its 2per cent target for at least two more years.

GOLD

The precious metal rebounded back to above $1800. If the upside momentum continues then the next key resistance areas to watch $1815 and $1840.

Economic Outlook

On the data front, the Bank of Canada held its key overnight interest rate at 0.25% and ended the QE program. The Bank no longer believes that the Canadian economy requires extraordinary monetary stimulus associated with QE. However, the central bank signalled that interest rates could rise in the second half of 2022.

Moving ahead today, the important events to watch:

EUROZONE – ECB Interest rate decision and statement: GMT – 11.45

US – GDP: GMT – 12.30

Coronavirus update:

Worldwide, more than 243 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46 million cases and has had more than 735,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

USDJPY:
The pair holding the early gains against the dollar. If the downside pressure continues then the next support levels to watch 113.40 and 113.10. On the other side, the immediate resistance is around 113.85 and 114.20.

euraud


The important levels to watch for today: Support- 113.40 and 113.10 Resistance- 113.85 and 114.20

GOLD: The gold traders will have a busy day today. If any breakout below $1792 will open $1787 and $1782, on the other side, break above $1809 will print $1815 and $1818.

gold neww


The important levels to watch for today: Support- 1793 and 1782 Resistance- 1809 and 1815

Quote of the day- Every day I get up and look through the Forbes list of the richest people in America. If I'm not there, I go to work - Robert Orben.

Read more- https://gulfbrokers.com/en/daily-market-report-393
 
For today the Gold price is supported at $1790 levels, any break below this level will open the doors to $1784 and $1772. On the flip side, the immediate resistance at $1810 and $1815.
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Shares of e-commerce platform provider Shopify (NYSE: SHOP) jumped 8% on Thursday despite weaker-than-expected Q3 earnings results. The stock has gained almost 27% in 2021. Shopify’s revenue for the quarter rose to $1.12 billion from $767 million, but it came slightly below the Wall Street expectation of $1.15 billion.

The company’s subscription solutions revenue jumped by 37% to $336.2 million in the last quarter and Merchant Solutions revenue amounted to $787.5 million, up 51%.

  • EPS: $0.81 vs. $1.23 expected
  • Revenue: $1.12 billion vs. $1.15 billion expected
“We continue to expect the fourth quarter to contribute the largest share of full-year revenue and that the revenue spread will be more evenly distributed across the four quarters than it has been historically,” the company said.

EQUITIES

Wall Street ended higher on Thursday supported by strong weekly jobless claims data and better-than-expected earnings results. On the earnings front, Chevron, ExxonMobil, and AbbVie are amongst those reporting the last quarter financial results today.

OIL

Crude oil prices holding the previous session gains, but the overall momentum remains after this week US inventories showed surprise gain. On the other hand, the oil investors turned their attention to the next week meeting of the Organization of the Petroleum Exporting Countries and its allies.

CURRENCIES

In the currency market, the Australian dollar traded steady after the release of the retail sales report. The data showed the retail sales rose 1.3% in September from August. Meanwhile, the EURO rises to fresh a fresh monthly high against the US dollar after the European Central Bank decided Thursday to leave its monetary policy unchanged.

GOLD

The precious metal struggling to hold above $1800. During the previous session, the metal rises to $1809 but failed to break above the key resistance $1815 level. At the time of writing, the gold price trade below $1800.

Economic Outlook

On the data front, U.S. Commerce Department reported on Thursday that U.S. GDP rose only 2% in the third quarter, down from 6.7% growth in the second quarter. While the Jobless claims dropped by 10,000 to 281,000, the lowest since mid-March 2020, the Labor Department said Thursday.

Moving ahead today, the important events to watch:

EUROZONE – CPI: GMT – 09.00

US – Personal income: GMT – 12.30

Coronavirus update:

Worldwide, more than 245 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46 million cases and has had more than 735,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD:
The currency pair slightly retreat from the early session highs. On the downside, the next key support area to watch today is 1.1640/10. On the flip side, the immediate resistance is at 1.1690 and 1.1720.

eurusd


The important levels to watch for today: Support- 1.1640 and 1.1610 Resistance- 1.1690 and 1.1720.

GOLD: Currently the gold price is supported at $1790 levels, any break below this level will open the doors to $1782 and $1774. On the flip side, the immediate resistance at $1810 and $1815.

gold neww


The important levels to watch for today: Support- 1790 and 1782 Resistance- 1810 and 1815

Quote of the day- “Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard.” - Warren Buffett.

Read more- https://gulfbrokers.com/en/daily-market-report-394
 
Wow with all that's gone on in the world I think we will still have remnants of online learning and at home working. I think this could be a great opportunity
Excellent point my man .
Online learning where it's practical will also be much cheaper than uni .
I mean young people can stay at home or meet up in local library's.
It decreases Carbon footprint less driving working from home
 
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The week all eyes will be turning to the central bank meetings as the investors wait for further clues on future policy and the prospect of tapering QE. The RBA will kick off this month central banks policy meeting on Tuesday followed by the US Federal Reserve (Fed) and the Bank of England (BoE).

On the other hand, the investors also waiting for the release of the October US employment report on Friday. Economists are expecting that U.S. employers created 750,000 jobs last month, with the unemployment rate dropping to 5.2%.

On the earnings front, the big tech giants like Apple and Amazon reported weaker-than-expected earnings results last week. Moving ahead to this week, the Q3 earnings season continues, with Uber, Pinterest, Pfizer and Moderna all reporting earnings this week.

GOLD

Gold price ended lower last week amid Fed's monetary tightening expectations. The FED will begin a two-day policy meeting on Tuesday. During the last FED meeting, the central bank signalled plans to begin tapering its bond-buying stimulus by year’s end and possibly raise interest rates in 2022, a year earlier than it had anticipated.

gold neww


For this week, $1,760 is the immediate support level, followed by $1,745. If the pair breaks below the $1,745, the slump will quickly extend toward the $1,720 mark. On the upper side, gold is likely to find immediate resistance at $1,793, any break above the $1,793 level could lead the prices of the precious metal towards the next resistance levels of $1,810 and $1,815.

DOLLAR INDEX

The US dollar gained strong bullish momentum last Friday ahead of the key FOMC meeting and the Index closed above the 94 psychological level. The upside momentum also boosted after the release of stronger-than-expected US consumer sentiment data. US Michigan's consumer sentiment was revised slightly higher to 71.7 in October of 2021 from a preliminary of 71.4.

DXY


This week, the key resistance is located above the previous month high around 94.50, a break above this level will confirm a possible move to 94.80/95.00. On the downside, if the Index loses the 93.70 handle, then we expect a move toward 93.30.

EURUSD

EURO traded extra volatile last week. The currency pair first rose nearly 0.7% against the dollar on Thursday after the European Central Bank decided to leave its monetary policy unchanged. But on Friday, the EURO erased the gains and the European single currency fell back to near the monthly low.

eurusd


Technically the overall momentum remains bearish, the immediate support for the Euro stands near the psychological level of 1.1500 followed by 1.1450. On the flip side, the first resistance at 1.1590 any break above this level will open 1.1625/40 minimum.

DOW JONES

Dow Jones closed out October solidly in the green supported by robust Q3 earnings results and oil price rally. For this week, the main drivers for the Index will be the Q3 earnings results and FOMC decision, and the OPEC meeting outcome.

cruse


This week, the first resistance is located around 35,950, a break above this level will confirm a possible move to 36,050/100. On the downside, any meaningful pullback now seems to find some support near the 35,500 zones, below which the slide could further get extended towards the 35,350/00 region.

Read more- https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-12
 
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On October 24, Chinese electric vehicle maker XPeng announced the sixth generation of its flying car. The flying car with road capabilities is currently scheduled to arrive in 2024 and it was developed by XPeng’x Urban Air Mobility affiliate known as HT Aero. He Xiaopeng, the CEO of XPeng believes that by 2040 10-15% of the Chinese population will be driving flying cars.

XPeng (NYSE: XPEV) stock surged more than 10% after the news and XPeng shares have added more than 32% since October 1st. In the short term, if the bullish momentum continues the next upside levels to watch $60 and $74. On the flip side, any pullback might now be seen as a buying opportunity.

tesla


The flying car features a lightweight design and foldable rotor mechanism, and the car will have an advanced environmental perception system to conduct safety assessments before take-off. The company revealed the vehicle will have several safety features, including parachutes. Alongside the flying car, XPeng also unveiled the latest version of its advanced driver assistance system called Xpilot 4.0, which is expected to be rolled out in the first half of 2023.

"Our exploration of more efficient, safer, carbon-neutral mobility solutions goes far beyond just smart EVs, and is the cornerstone of our long-term competitive advantages," XPeng CEO He Xiaopeng said.

On the other hand, recently XPeng released its vehicle delivery results for October 2021. The company delivered 10,138 vehicles last month, more than tripling from a year earlier.

Read more- https://gulfbrokers.com/en/chinas-xpeng-ready-to-fly-high
 
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As we are heading to the final months of this year. So, I thought I would share with you guys some of the stocks which I believe you should add to your watchlist now.

Here are the 5 stocks you need to watch in Q4

1. Lucid Group (NASDAQ: LCID) - Market Cap: 57B

Lucid is an American-based automotive manufacturing company specialized in electric cars. Recently the stock bounced more than 40% after the company announced that deliveries of the highly anticipated Air Dream Edition sedan will begin on Saturday, October 30th.

Technical view: The stock has been range-bound over the past 6 months and currently trading above the upper base of a rectangle pattern. In the long term, there are chances the stock may eventually rise back to the all-time high of $64 if the upside momentum continues.

LUCID


2. Teladoc Health (NYSE: TDOC) - Market Cap: 23B

Teladoc is a virtual healthcare company that offers a variety of care services, including primary care, and mental health etc.

Technical view: The stock rebounded after a big sell-off this year and it is currently supported at $120. In the long term, watch for the important breakout at $100 and $175, which will give a larger confirmation of direction.

TELADOC


3. ChargePoint (NYSE: CHPT) - Market Cap: 6.94B

ChargePoint is a leading electric vehicle charging network in North America and Europe.

Technical view: The stock jumped almost 10% in October after losing more than 40% so far this year. While in the short term, it can push further up if the recent upside momentum continues, and the first target should be $28. On the downside, if the stock loses the $17 handle, then the next support area to watch is $12.95(52-week low).

CHARGE


4. Alibaba (NYSE: BABA) - Market Cap: 486.6B

Alibaba is the largest retailer in the world, and also one of the largest internet business platforms with operations in more than 200 countries.

Over the past couple of months, we have witnessed a sharp fall in the price of Alibaba stock and that was a quite surprise for the investors, but the stock found strong buyers below the two-year low.

Technical view: The key resistance remains near the $200 psychological level, any break above would increase the potential of an extension towards $230 over the coming months. On the flip side, the immediate support is near $165 then $150.

BABA




5. NIO (NYSE: NIO) - Market Cap: 63.71B

NIO is a publicly-traded Chinese automaker which is also called the Chinese version of Tesla.

NIO shares closed in the green for the third consecutive week. During the 3rd quarter. the stock faced some downside pressure as the company witnessed tough challenges from the competition and the technology front. In the long term, watch for the important breakout at $46 and $30, which will give a larger confirmation of direction.

NIO



Read more - https://gulfbrokers.com/en/stocks-to-watch-in-q4
 
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Pharmaceutical giant Pfizer (NYSE: PFE) kicks off this week health care earnings. Wall Street’s revenue consensus for $PFE is $22.7 billion and the earnings per share of $1.08 per share for the quarter.

CVS Health (NYSE: CVS) plans to announce its third-quarter financial results on Wednesday, Nov. 03. Other health care firms including Regeneron Pharmaceuticals (NASDAQ: REGN) and Moderna (NASDAQ: MRNA) are both scheduled to report earnings on Nov. 04.

EQUITIES

US stock futures struggling to find the upside momentum as investors await the Fed’s taper announcement. On Monday, the major US indices ended higher for the third consecutive session supported by strong earnings reports.

OIL

Crude oil prices slightly retreat from the highs after Kuwait said the cartel should stick with its plan to increase output gradually because oil markets were well-balanced. While the focus shifts to the OPEC+ monthly meeting on Thursday. On the other hand, the oil investors also waiting for the US crude oil inventory reports from API on Tuesday, and the official EIA data on Wednesday.

CURRENCIES

In the currency market, the US dollar ignored the better-than-expected US ISM manufacturing data and the greenback hovers near the session low. The ISM manufacturing PMI surged to 60.8, against the projected 60.4. Meanwhile, the Australian dollar faces downside pressure after the RBA dovish statement.

GOLD

The precious metal remained volatile ahead of a policy statement by the US Federal Reserve and any policy action could put a dent or prop up the yellow metal’s safe-haven appeal.

Economic Outlook

On the data front, The Reserve Bank of Australia has kept Australia's interest rate on hold at the record-low level of 0.1% and the bank will maintain its policy of buying $4 billion in government bonds a week until mid-February. RBA governor Lowe said that interest rates would not be hiked up until the bank was satisfied there was a sustainable increase in inflation.

"This is likely to take some time. The board is prepared to be patient, with the central forecast being for underlying inflation to be no higher than 2.5 per cent at the end of 2023 and for only a gradual increase in wages growth," - RBA governor Lowe said.

Coronavirus update:

Worldwide, more than 246 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46 million cases and has had more than 740,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

USDJPY:
The currency pair retreats back to near the 113.60 area. If the bearish momentum continues the next downside levels to watch today, 113.40 and 113.10 zones. On the flip side, the immediate resistance is at 113.90/114.30.

euraud


The important levels to watch for today: Support- 113.40 and 113.10 Resistance- 113.90 and 114.30.

GOLD: For today, the resistance for Gold around 1802, any break over targets 1806/10. On the other side, the immediate support near 1787 and any break will drag the metal to 1782 and 1778 levels.

gold neww


The important levels to watch for today: Support- 1787 and 1780 Resistance- 1802 and 1810.

Quote of the day- “Individuals who cannot master their emotions are ill suited to profit from the investment process.” Benjamin Graham.

Read more- https://gulfbrokers.com/en/daily-market-report-395
 
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As 5G technology offers, compared to any other technology known before, much faster and more reliable Internet access, faster network response, and higher connectivity of a large number of devices we are on the verge of an unseen revolution.

I selected three sectors to which special attention should be paid because of the 5G.

Ground-breaking medical applications

5G has been first tested in 2019 in China during a long-distance medical surgery. Except for the operations it can also be used to monitor patients’ conditions. Stryker Corporation which operates in the biotechnology industry or Intuitive Surgical focused on medical robotics belong among the biggest companies using the 5G technology.

Revolution in transport

Moving on to the transport sector, thanks to the 5G technology, robotic taxis or autonomous driving will be able to develop. It will also help to transfer information between cars and, for example, surrounding buildings or street lighting. Companies like Ford or Lyft have been testing the advantages of this new generation. Furthermore, Ford in partnership with Argo AI has been testing self-driving cars via the Lyft platform.

New smart devices standard

The smart devices sector is another one benefiting from this development. Consumers including companies or factories have access to information and communicate faster and easier than ever. The American subsidiary of the Ericsson company enables full adaptation and installation of equipment for Industry 4.0. IBM is operating with its cloud system and a majority of their products can be used in expanding usability — optimization of factories, AI, remote human assistance, etc. — to enhance the quality and efficiency of work.

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In conclusion, we can see that technological evolution has been huge. It has developed and modernized industries like communication or transport and with the emergence of the 5G generation, the new technology era starts.

Read the full blog here- https://gulfbrokers.com/en/5g-technology-and-top-companies-in-business-sectors
 
Finally, the most awaited Nov Fed decision is due to release today. Volatility in the markets is expected to be high.

Carefully watch the below levels

Gold $1770 and $1795
gold neww.PNG

EURUSD 1.1560 and 1.1640
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Dow Jones 35,490 and 36,100
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USDJPY 113.20 and 114.30
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Dollar Index 93.70 and 94.30
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