Daily Market Report by GulfBrokers 2020-2021

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US markets are set to open lower today. Dow and the S&P 500 futures are down more than 1% at the time of writing, while Nasdaq has declined by 1.5%.


EQUITIES


UK shares plunged on Monday led by HSBC and Standard Chartered shares after an investigation released over the weekend based on leaked documents reported that several lenders moved large sums of illicit funds over two decades. On Friday, Wall Street closed at their lowest level of the month after sharp losses in the tech sector led by Apple (-3.2%), Amazon (-1.8%), and Microsoft (-1.2%).

OIL

Crude oil prices slipped lower on Monday as the spike in global coronavirus cases raised concerns over fuel demand recovery and the possibility of further lockdowns.

CURRENCIES

In the currency market, the British Pound and Euro trading under pressure on concerns over rising coronavirus cases. On Sunday, the UK government reported 4,422 new infections, its biggest daily rise since early May.

GOLD

The gold price slipped below $1940 during the European session after the US Dollar rebounded from the previous session losses.

Economic Outlook

On the US-China front, Donald Trump approved a deal involving TikTok’s parent ByteDance, in which Oracle and Walmart would take minority stakes in a new entity called TikTok Global.

Moving ahead to the North American session, the Federal Reserve Chair Jerome Powell is due to speak, along with the rest of the FOMC board members. On the other hand, during the Asian session, the People’s Bank of China kept its benchmark lending rate for corporate and household loans steady for the fifth straight month.

Coronavirus update:

Global Coronavirus Infections Hit 31 Million The number of people infected with the coronavirus across the world surpassed 31 million, of which at least 960 thousand people have died and 21.2 million have recovered, according to data released by the Johns Hopkins University. The United States has passed 6.7 million confirmed cases, with over 199,000 deaths from COVID-19, the highest numbers in the world.

Technical Outlook



EUR/USD:
The currency pair retreated back to below 1.1800 after the pair failed to break above 1.1870.

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The important levels to watch for today: Support- 1.1790 and 1.1750 Resistance- 1.1840 and 1.1870.



Dollar Index: The greenback rebounded from the previous session losses. At the time of writing, the Index trading steady above 93.20.

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The important levels to watch for today: Support- 92.70 and 92.50 Resistance- 93.55 and 94.



Quote of the day: To be a good trader, you need to trade with your eyes open, recognize real trends and turns, and not waste time or energy on regrets and wishful thinking – Alexander Elder.


Read more- https://gulfbrokers.com/en/daily-market-report-170
 
Global stocks fell sharply on Monday, moving ahead the key events to watch: RBNZ and SNB meetings. Eurozone, US and UK PMI, US housing data.

Earnings to watch: Nike, Accenture and Costco

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European equities and Euro remained under pressure as several European countries reintroducing fresh lockdowns. The EUR/USD slips to a new monthly low of 1.1730 on Monday and German DAX30 witnessed the largest daily loss since June 11th. The new Coronavirus cases across Europe and the UK now reached the highest level since April.

The Czech Republic has reported growth in coronavirus confirmed cases at Europe's second-fastest pace in recent weeks and on Monday Czech Health Minister Adam Vojtech submitted his resignation following criticism over his handling of the coronavirus pandemic.

On the other hand, England's chief medical officer Whitty has warned the rate of COVID-19 infections in the UK is "heading in the wrong direction" and the country is in a "critical point" in the pandemic. UK PM Johnson's office said Sunday that those in England who refuse an order to self-isolate could be fined as much as £10,000 (S$17,465).

The number of confirmed cases of coronavirus around the world have passed 31 million, of which more than 960 thousand died and over 21 million recovered.


Read more- https://gulfbrokers.com/en/european-markets-under-pressure-after-spike-in-covid-19-cases
 
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The British pound slipped to near 2-months low on Tuesday after Bank of England Governor Bailey warned that the recent rise in COVID-19 cases "reinforced the downside risks" facing the UK economy. On the other hand, England's chief medical officer Whitty has warned the rate of COVID-19 infections in the UK is "heading in the wrong direction" and the country is in a "critical point" in the pandemic.

EQUITIES

The global equity markets ended sharply lower on Monday. The Dow dropped 1.9%, while the S&P 500 fell 1.2%. The technology-laden Nasdaq Composite lost 0.1%. Meanwhile, London's FTSE 100 and the CAC 40 in Paris tumbled more than 3%, while the Frankfurt DAX tanked more than 4%. Nikola (NASDAQ: NKLA) shares dropped more than 19% after founder Trevor Milton has resigned as executive chairman over fraud allegations.

OIL


Crude oil prices plunged over fears about the outlook for energy demand due to rising coronavirus cases in Europe. During the European session, the Oil prices slightly rebounded ahead of the API inventory data due later in the day.

CURRENCIES

In the currency market, the US dollar index climbed to fresh monthly high on Tuesday. The Australian dollar fell to new weekly lows after the Reserve Bank of Australia said it is assessing policy options including currency market intervention and negative rates.

GOLD

The gold price hovers near $1900 zone ahead of Fed Chairman Jerome Powell speech in the US Congress.

Economic Outlook

On the US-China front, the latter's Ministry of Commerce released provisions on its so-called “unreliable entity list” a day after the Trump administration announced a ban on WeChat and TikTok.

European Commission Vice President of Interinstitutional Relations and Foresight announced on Tuesday that a joint committee between the European Union (EU) and the UK on the Brexit issue will take place on September 28.

Coronavirus update:
The number of people infected with the coronavirus across the world surpassed 31.3 million, of which at least 964 thousand people have died and 21.5 million have recovered, according to data released by the Johns Hopkins University. Former Food and Drug Administration Commissioner Scott Gottlieb warned the US may experience “at least one more cycle” of the virus in autumn and winter.

Technical Outlook

GBP/USD:
The currency pair slightly rebounded from the early session low of 1.2710, at the time writing the British Pound hovers near 1.2800 zones.

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The important levels to watch for today: Support- 1.2770 and 1.2710 Resistance- 1.2830 and 1.2870.

GOLD: The yellow metal trading above $1900 on Tuesday after the yellow metal dropped more than 3% on Monday.

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The important levels to watch for today: Support- 1890 and 1880 Resistance- 1910 and 1920.

Quote of the day: keeping your ear to the ground in the markets is a sound investment – Amah lambert.

Read more- https://gulfbrokers.com/en/daily-market-report-171
 
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Reserve Bank of New Zealand maintained its official cash rate at a record low of 0.25%. The RBNZ Monetary Policy Committee said it would keep the OCR at 0.25% for at least a year and planning to introduce a Funding for Lending Programme (FLP) before the end of this calendar year. The Committee noted low population growth and rising unemployment could "constrain further house price increases". The central bank also retained its large-scale asset purchase (LSAP) programme at NZ$100 billion ($66.2 billion).

EQUITIES

On Tuesday, Wall Street ended higher after Fed Chair Jerome Powell said the U.S. central bank is committed to helping the economy. He said that the US Central Bank was committed to using all of its monetary policy tools for as long as necessary, in order to support the global economic recovery. On the other hand, U.S. Treasury Secretary Steven Mnuchin said the White House continues to seek an agreement with both parties in Congress on another fiscal relief package. The S&P 500 added 1.1% and the Nasdaq Composite rose 1.7%, while the Dow Jones Industrial Average was up 0.5%.

OIL

Crude oil prices trading unchanged on Wednesday. According to the latest API report, the crude inventories in the US increased by 691k barrels during the previous week. On the other hand, Eurasia Group expects oil demand around the world to fall by over 10% YoY to around 90 million bpd.


CURRENCIES

In the currency market, the New Zealand slide below 0.66 after RBNZ left the OCR unchanged at 0.25%. Meanwhile, the British pound extends lower after UK Prime Minister Boris Johnson was forced to impose new restrictive measures to curb the rapid spread of the coronavirus.

GOLD

The Gold price slipped below $1900 again on Wednesday, facing a third-straight loss amid a strengthening dollar.

Economic Outlook

On the US-China front, a Chinese newspaper said that the local government would not approve the Oracle’s proposed deal to acquire a stake in ByteBance’s TikTok in an effort to handle US operations together with Walmart.

On the data front, UK Composite PMI dropped to 55.7 in September 2020, compared to market expectations of 56.3. Eurozone Composite PMI decreased to 50.1 in September of 2020 from 51.9 in August and compared market forecasts of 51.7.

Moving ahead today, the important events to watch:

US – Manufacturing PMI: GMT – 13.45

US -Crude oil inventories: GMT – 14.30

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 31.6 million, of which at least 970 thousand people have died and 21.7 million have recovered, according to data released by the Johns Hopkins University.

Technical Outlook

EUR/USD:
The currency pair trades back to above 1.17, during the European session the pair hits fresh monthly low of 1.1670.

euraud


The important levels to watch for today: Support- 1.1670 and 1.1640 Resistance- 1.1735 and 1.1770.

GOLD: The yellow metal recovered from the early session lows, at the time of writing the gold price hovers near $1890 zone.

audusd


The important levels to watch for today: Support- 1870 and 1862 Resistance- 1890 and 1900.

Quote of the day: Good day traders do not have big swings or big losing days. A good day trader is very conservative and picks his spots closely- Edward Franco.

Read more- https://gulfbrokers.com/en/daily-market-report-172
 
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Nike shares surged more than 13% after the sports giant reported better than expected quarterly results on Tuesday. Meanwhile, apparel maker revenue slipped 0.6% to $10.59 billion from $10.66 billion a year earlier but better than the $9.15 billion forecast by analysts. The company said its "Nike Brand" digital sales grew 82% during the quarter, including triple-digit growth in Europe, the Middle East and Africa. Overall, revenue has returned to growth in Europe, Middle East, Africa, and China.

  • Earnings per share (EPS) $.95 vs. $.47 expected
  • Revenue $10.59 billion vs. $9.15 billion expected
“We know that digital is the new normal. The consumer today is digitally grounded and simply will not revert back,” CEO John Donahoe said. Our Nike digital business is already meeting our mix goal of 30%, nearly three years ahead of schedule and we will continue to grow from here," he added.

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Nike shares surged to an all-time high on Wednesday following the earnings report and the stock up 15% for the year.


Read more- https://gulfbrokers.com/en/nike-shares-spiked-after-online-sales-grew-82
 
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The US dollar index surged to two months high on Thursday. At the time writing, the index trades steady above 94.40. Moving ahead to the North American session, the investors and traders will closely monitor the latest US home sales and weekly jobless claims data.

EQUITIES

Global equity markets are under pressure amid fears that new lockdowns in the EU would hurt the global economic recovery and uncertainty about new U.S. fiscal stimulus. On Wednesday, the S&P 500 fell 2.4% erasing an earlier gain while Dow Jones dropped by 1.92%, and Nasdaq tumbled 3.02%.

OIL


Crude oil prices trading steady on Thursday supported by better-than-expected EIA inventories data. The inventories fell for the second straight week, by 1.6 million barrels for the week ended September 18th.

CURRENCIES

In the currency market, the EUR/USD slipped to new weekly lows after weaker-than-expected German economic data.

GOLD

The Gold price hits fresh two months low on Thursday, during the European session the yellow metal fell below $1850 zone.

Economic Outlook

On the data front, German IFO Business Climate Index came in at 93.4 in September, stronger than last month's 92.6 while missing the consensus estimates pointing to a reading of 93.8.

On Wednesday, Federal Reserve Chair Jerome Powell noted that despite progress in rebounding from the coronavirus economic downturn, "there is a long way to go." He also said the economy needs more government support, but a new stimulus package might not be approved soon with the presidential election just six weeks away.

Moving ahead today, the important events to watch:

US - Initial jobless claims: GMT – 12.30

US -New Home Sales: GMT – 14.00

UK - BoE’s Governor Bailey Speech: GMT – 14.00

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 31.8 million, of which at least 976 thousand people have died and 21.9 million have recovered, according to data released by the Johns Hopkins University. On Tuesday, the United States passed 200,000 deaths as a result of the pandemic, according to Johns Hopkins University. Meanwhile, Johnson & Johnson on Wednesday announced that it has begun the third phase of clinical trials for its experimental vaccine against the coronavirus.

Technical Outlook

GBP/USD:
The British pound trading steady above 1.27 on Thursday. As of writing, the pair is currently trading around 1.2750 level.

euraud


The important levels to watch for today: Support- 1.2710 and 1.2680 Resistance- 1.2780 and 1.2820.

GOLD: The yellow metal hovers near the $1850 demand zone, any break above the $1861 area the next upside to watching $1870 then $1878. On the other hand, immediate support around $1843.

audusd


The important levels to watch for today: Support- 1843 and 1835 Resistance- 1861 and 1870.

Quote of the day: I could trade without knowing the name of the market – Richard Dennis.

Read more- https://gulfbrokers.com/en/daily-market-report-173
 
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US New Home Sales for August revealed an advance to 1,011K, against the predicted 890K, according to a report from the National Association of Realtors. Sales of new homes increased by 4.8%, the rate was the highest since 2006. On the other hand, the existing home sales increased 2.4% to a seasonally adjusted annual rate of 6 million units last month.

EQUITIES

On Thursday, Wall Street ended higher on renewed stimulus hopes. As per the recent update, the Democrats in the House of Representatives are working on a $2.2 trillion stimulus package. The bill is expected to be voted next week. The Dow Jones Industrial Average rose over 52 points or 0.2%, while the S&P 500 gained 0.30% and the Nasdaq Composite edged up 0.37%.

OIL

Crude oil prices trading steady on Friday boosted by better-than-expected weekly API and EIA inventory data.

CURRENCIES

In the currency market, the British pound climbed to above 1.28 on Friday. The currency pair gained after the UK finance minister Rishi Sunak unveiled a new job protection scheme after the current one expires in October.

GOLD

The Gold price slightly rebounded from the previous session losses supported by a weaker dollar and rising numbers of coronavirus cases.

Economic Outlook

On Thursday, the US Labor Department released the latest jobless claims data. The Unemployment Claims figures for last week showed a rise to 870K, against the expected 845K.

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 32.2 million, of which at least 983 thousand people have died and 22.2 million have recovered, according to data released by the Johns Hopkins University. Russian health officials reported 6,595 new coronavirus cases on Thursday, the highest daily surge since July. China reported eight new coronavirus cases, compared with seven cases disclosed a day earlier, the national health authority said.

Technical Outlook

EUR/USD:
The currency pair trading near 1.1650 on Friday after it touched a low of 1.1626 on Thursday, its lowest since July 24.

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The important levels to watch for today: Support- 1.1620 and 1.1590 Resistance- 1.1680 and 1.1720.

GOLD: The yellow metal hovers near the $1870 zone during the European session supported by $1861 and $1848.

audusd


The important levels to watch for today: Support- 1860 and 1848 Resistance- 1876 and 1882.

Quote of the day: If you don’t build your dream, someone else will hire you to help them build theirs – Dhirubhai Ambani.


Read more- https://gulfbrokers.com/en/daily-market-report-174
 
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With less than two months to go to voting day for the US presidential election held on 3 November 2020 and the race between Donald Trump and Democrat leader Joe Biden tightening, financial markets are starting to get the jitters.

During the last week, Federal Reserve finished the September meeting— the last one before Election Day. The US central bank held rates steady as expected. Fed announced that it will keep interest rates near zero for years until a recovery is firmly in place. Since 1971, when the Fed introduced its Fed funds rate, the bank has changed its policy rate every single election year except for 2012.

Few notable financial market movements ahead of US election:

Stock Market

Wall Street slumped sharply this month following a selloff in US tech stocks due to overvaluation concerns after another month of stellar gains in August. The strong recovery of US equities has been supported by optimism around potential COVID-19 vaccines. US markets led the way with the S&P500 up 7% – its best August since 1984. The Dow Jones also moved closer towards positive territory for 2020 since bottoming out in March at the height of the pandemic but is yet to reclaim its February highs.

Currencies

US Dollar Index: The US dollar index surged to two months high on Thursday after it struggled a couple of weeks to find buyers ahead of the election. The US election should mark a turning point for dollar perceptions.

EUR/USD: In 2020 the currency pair surged more than 10% against the US dollar. The currency pair EURUSD hits 2-month this week after negative comments from ECB policy makers. During the last European Central Bank meeting, the central bank officials voicing concerns about the strong euro, with the currency recently touched a two-year high of US$1.20. Back in 2016, EUR/USD increased in the run-up to the election, but that was driven by expectations of Hillary Clinton winning. With Trump’s surprising win, the dollar gained, and the Euro slipped lower.

USD/JPY: Quite possibly the most important forex pair to watch as the election nears is USDJPY. The currency pair remains under pressure ahead of election supported by the recent stock market bearish move and broader USD weakness.

Commodities


Gold: The yellow metal surged more than 35% this year boosted by lower interest rates and rising coronavirus cases. Gold reached a new milestone with an intraday high of $2,075 on 7th August. The yellow metal returned as a favoured option for those traders seeking a safe haven during turbulent times and 2020 has been full of uncertainty. The upside rally also supported by a weaker dollar and escalating tensions between the US and China. In the 2016 presidential elections, after Trump’s surprise win over Democrat Hillary Clinton investors fled to gold, a safe haven asset. That pushed gold prices up nearly 5%.

Crude Oil: Oil prices trading steady after two consecutive weekly drops. The price boosted by the positive weekly API and EIA inventory data. The market participants believe in case Democrat leader Joe Biden elected will be negative for the oil industry, because he may stop issuing drilling permits for federal lands and waters, which would shrink US oil production by up to 2 million b/d by 2025.


Read more- https://gulfbrokers.com/en/stocks-and-metals-pause-the-rally-ahead-of-us-election
 
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Costco Wholesale (NASDAQ: COST) showed its continued growth during the pandemic, America’s multinational corporation announced better-than-expected fourth-quarter financial results on Thursday. The company E-commerce sales rose 91.3% during Q4 on a year-over-year basis and were up 50.1% for the full fiscal year.

  • Earnings per share (EPS) $3.4 vs. $2.85 expected
  • Revenue $53.38 billion vs. $52 billion expected

“As people are spending less on travel, air and hotel and dining out, they seem to have redirected at least some of those dollars to categories like lawn and garden, furniture, mattresses, exercise equipment, bicycles, housewares, cookware, domestics and the like,” Chief Financial Officer Richard Galanti said.

Costco, which has 795 stores in the United States, Canada, and several other countries, also resumed services that were temporarily suspended, including the sale of glasses and food courts. Meanwhile, the company said, "This year’s fourth quarter was negatively impacted by incremental expense related to COVID-19 premium wages and sanitation costs,".


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Costco shares gained more than 19% so far this year while the stock closed slightly lower on Friday.


Read more- https://gulfbrokers.com/en/costco-surprises-again-wall-street-with-strong-results
 
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