DAILY MARKET REPORT - Friday, Sep 04, 2020

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Wall Street faced their worst day since June on Thursday after U.S. stocks fell sharply, driven by a broad decline in technology firms.

  • The Dow Jones Industrial Average down 3%.
  • S&P 500 lost 3.5%.
  • Nasdaq Composite slide 5% (the largest decline in the last 5 months).
EQUITIES

Global markets trading lower on Friday amid a sharp decline in Wall Street’s overnight. Meanwhile, European markets rebounded on Friday boosted by positive comments from French Finance Minister Bruno Le Maire. On the other hand, the French government unveiled a EUR100 billion ($118.3 billion) stimulus plan to combat the economic impact of the coronavirus crisis over two years.

OIL

Crude Oil prices trading lower on Friday after the recent data from Refinitiv Eikon indicates that crude volumes being imported by China are expected to decline this month after increasing continuously over the past five months. Brent crude fell 0.4%, to $43.88 a barrel heading for its biggest weekly loss since June.

CURRENCIES

In the currency market, the US dollar index (USD) trading steady ahead of the official nonfarm payroll data from the United States. On Thursday, the Canadian dollar and Aussie dollar were among the worst-performing currencies against the USD.

GOLD

Gold price slightly reversed from the previous session lows and trading above $1930 during the European session ahead of NFP data.

Economic Outlook

On the data front, During the European session, the German factory orders reported weaker-than-expected 2.8% in July 2020 after an upwardly revised 28.8% gain in the previous month, and below market forecasts of a 5%.

On Thursday, according to the Bureau of Labour Statistics (BLS), more than 881K Americans signed for initial jobless claims last week, slightly slowing down from the previous value of 1.011M.

Moving ahead today, the important events to watch:

US employment report – 12.30 GMT

CAD employment report – 12.30 GMT

Coronavirus update:

Worldwide, the number of COVID-19 cases reported has surpassed 26 million, the United States has passed 6.1 million confirmed cases, with over 185,000 deaths from COVID-19, the highest numbers in the world. India reports 83,341 new cases in the last 24 hours, marking the second straight day of over 83,000 cases and bringing the country total to more than 3.93 million. New Zealand's Prime Minister Jacinda Ardern says the country's current restrictions to contain the coronavirus pandemic will continue until mid-September.

Technical Outlook

XAU/USD:
The gold price hovers near the $1935 on Friday. On Thursday, the precious metal price dropped to near $1920 during the North American session.

audusd


The important levels to watch for today: Support- 1900 and 1900 Resistance- 1945 and 1965.

EUR/USD: The currency pair trading unchanged during the European session after less-than-expected German factory orders data.

cruse


The important levels to watch for today: Support- 1.1800 and 1.1760 Resistance- 1.1870 and 1.1900.

Quote of the day: Investors should remember that excitement and expenses are their enemies – Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-160
 
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