Daily Market Report by GulfBrokers 2020-2021
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Gold price dropped back to below $2000 on Tuesday during the European session, the yellow metal dropped to a fresh weekly low of $1983. On Monday, the gold price started the week on a positive note and climbed to near $2050 but later in the North American session, the price retreated to below $2030. In this year, the gold prices have surged more than 35% supported by geopolitical tensions, a weaker US dollar and mounting numbers of coronavirus cases across the globe.
EQUITIES
Global stocks edge higher as stimulus talks continue and investors are awaiting an agreement on a US relief bill after U.S lawmakers said they ready to resume negotiations on a coronavirus aid deal. On Monday, Wall Street ended higher supported after President Trump signed executive orders aimed at extending coronavirus aid, such as extending unemployment benefits and deferring student loan payments.
OIL
Crude oil prices trading higher on Tuesday, amid hopes of a more stimulus in the US, and last week, Iraq confirmed that it would curb crude production by 40,000 BPD during August and September to make up for its overproduction of crude oil over the past three months.
CURRENCIES
The US dollar slightly retreated from the day high, during the Asian session the greenback surged to a fresh weekly high of 93.70. The EUR/USD rebounded from the 1.1720 support zone boosted by strong German economic sentiment data.
GOLD
Gold price slightly recovered from the daily low, at the time of writing the yellow metal trading above $1990.
Economic Outlook
On the data front, The UK unemployment rate reported at 3.9% in the second quarter of 2020, below market expectations of 4.2% and the unemployment benefits in the rose by 94.4 thousand to 2.7 million in July 2020, following a 28.1 thousand decline in the previous month.
On Monday, the US reported the latest job opening numbers, the US JOLTS job openings rose to 5.9 million at the end of June versus 5.4 million printed a month earlier.
On the US-China front, The US Trade Representative, Robert Lighthizer, and the Treasury Secretary, Steven Mnuchin, are expected to hold a video conference with Vice-Premier Liu He this week, to review the implementation of the Phase 1 trade deal.
Coronavirus update:
The number of people infected with the coronavirus across the world surpassed 20 million, of which at least 736 thousand people have died, according to data released by the Johns Hopkins University. The US has also suffered the most deaths at 163,331, while there have been 101,000 in Brazil, 52,000 in Mexico, 46,611 in the UK and more than 44,000 in India.
Technical Outlook
XAU/USD: Currently the gold price supported at $1980 levels, any break below this level will open the doors to $1970 and $1950. On the other upper side, the immediate resistance at $2010 and $2015.
The important levels to watch for today: Support- 1980 and 1970 Resistance- 2010 and 2015.
EUR/USD: At the time of writing the currency pair trading above 1.1780 after dropped to 1.1720 during the early session.
The important levels to watch for today: Support- 1.1710 and 1.1670 Resistance- 1.1800 and 1.1830.
Quote of the day: I always knew I was going to be rich. I don’t think I ever doubted it for a minute - Warren Buffet.
Read more- https://gulfbrokers.com/en/daily-market-report-143
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In this year, the gold prices have surged more than 35% supported by geopolitical tensions, a weaker US dollar and mounting numbers of coronavirus cases across the globe.
GOLD -80$ down today, currently testing $1940, break below this level the next support at $1920 (previous all-time high) followed by $1900. On the upper side, the immediate resistance at $1960 then $1980.
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The New Zealand dollar and New Zealand shares tumbled on Wednesday after a dovish statement from the RBNZ. At the time of writing, the NZD/USD slightly recovered from the daily low of 0.6520.
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NZD/USD found the support near my S2 area and rebounded back to pivot level 0.6550. Any break below 0.6520 will open doors to 0.65 then 0.6460. On the upper side, the immediate resistance at 0.6570/80.
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Precious metals plunged on Tuesday following the latest development regarding COVID-19 vaccine. The gold price experienced the worst one-day decline in seven years. According to Reuters, Russia's President Vladimir Putin said that Russia had become the first country to grant regulatory approval to a virus vaccine after less than two months of human testing. "The first two phases of clinical trials are over, and their results will be published this month in line with international requirements." said sovereign wealth fund RDIF's chief executive Kirill Dmitriev.
Meanwhile, The US has made an agreement with the pharmaceutical company Moderna to deliver 100 million doses of their novel coronavirus vaccine once it becomes available, said President Donald Trump on Tuesday.
EQUITIES
Asian shares traded lower on Wednesday followed by Wall Street closed negative during the previous session on growing uncertainty about a stalemate in Washington over a fiscal stimulus deal. The Dow Jones fell 0.38%, the S&P 500 lost 0.80%, and the Nasdaq Composite dropped 1.69%.
OIL
Oil prices edged up after bigger-than-expected drop in U.S. inventories. The API reported on Tuesday, that the crude stocks in the US fell 4 million barrels last week, compared to market consensus of a 2.9 million-barrel draw.
CURRENCIES
The Australian dollar trades near the weekly low after Australia’s wage price index reported weakest growth and the country coronavirus death toll hit a new record high on Wednesday with 21 fatalities in the past 24 hours.
GOLD
The gold price plunged more than $100 on Tuesday after positive news about various Covid-19 vaccines and better-than-expected US economic data. During the last week, the yellow metal climbed to a record-high of $2,075 an ounce.
Economic Outlook
On the data front, The Reserve Bank of New Zealand left the official interest rate unchanged at a record low of 0.25%. Meantime, Australia’s Westpac Consumer Confidence in August showed a sharp decline of 9.5% after falling by 6.1% in the previous month.
On Tuesday, the US reported the latest PPI numbers, the Producer Price Index excluding Food & Energy in July increased by 0.5%, better than market expectations of 0.1%.
Coronavirus update:
The number of confirmed cases of coronavirus around the world surpassed 20 million, of which more than 735 thousand died and near 12.5 million recovered. On the other hand, Russia has named its first approved COVID-19 vaccine 'Sputnik V' for foreign markets, a reference to the world's first satellite, Reuters reported citing a top official. Russia has already received requests from more than 20 countries for 1 billion doses of its newly registered COVID-19 vaccine.
Technical Outlook
XAU/USD: The yellow metal rebounded from the daily low, at the time of writing the gold price trading above $1925.
The important levels to watch for today: Support- 1920 and 1900 Resistance- 1960 and 1980.
NZD/USD: The currency pair slightly rebounded from the daily low; the pair dropped to 0.6520 during the Asian session after the dovish comments from RBNZ.
The important levels to watch for today: Support- 0.65 and 0.6460 Resistance- 0.6570 and 0.6610.
Quote of the day: Good traders liquidate when they are wrong, great traders’ reverse whey they are wrong – Jack D. Schwager.
Read more- https://gulfbrokers.com/en/daily-market-report-144
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TESLA (NASDAQ: TSLA) shares pre-market up 7% after the carmaker announced Tuesday the five-for-one stock split. The split set to go into effect on August 31. Each stockholder of record on Aug. 21 will receive a dividend of four additional shares of common stock for each one they own. Starting August 31st, Tesla says it will begin trading on a split-adjusted basis. Recently, Apple’s stock price has soared by 14% because of the iPhone producer disclosed a four-for-one divide lower than fourteen days previous.
“The Board of Directors has approved and declared a five-for-one split of Tesla’s common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors,” Tesla said in a statement.
As we know the stock splits are typically done when the price of a stock gets so high that it intimidates small shareholders. The shares of TESLA surged more than 200% in this year and as per Tuesday closing the shares are valued at $1,374. After the stock split, the price would be around US$275 but the market capitalisation will not be affected. So, this will be more helpful for any normal investor wanting to own at least one Tesla stock. "make stock ownership more accessible to employees and investors" the company said.
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EUR/USD trading near the supply zone 1.1830/40. Any break above this level, the next resistance to watch 1.1880 then 1.1915(monthly high). On the downside, break below 1.1770 will open door to 1.1710 (weekly low) followed by 1.1660.
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On Wednesday, data released by the Office for National Statistics showed Britain's economy shrank by a record 20.4% between April and June, the biggest contraction reported by any major economy so far, while it was better than the expected 20.5% decline. The British pound slightly recovered from the previous session lows boosted by the weak dollar. On Wednesday, the currency pair traded lower and overall momentum remained bearish throughout the day due to disappointing economic data.
EQUITIES
European shares trading lower on Thursday after the US government announced it would maintain 15% tariffs on Airbus aircraft and 25% tariffs on other European goods including wine, whisky, olive oil and cheese. On the US earnings calendar, Cisco (NASDAQ: CSCO) Q4 financial results exceeded Wall Street estimates. While the stock slipped 6% after the Q4 revenue declined 9% and disappointing quarterly guidance.
OIL
Oil prices edged lower after the IEA slashed its 2020 oil demand forecast amid reduced air travel as coronavirus cases continue to rise. On the other hand, EIA data showed a bigger-than-expected drop in US crude inventories.
CURRENCIES
In the currency market, The EUR/USD and GBP/USD climbed to a fresh session high while commodity currencies like the Australian dollar and New Zealand dollar depreciated after weaker-than-expected economic data.
GOLD
The gold price trading unchanged during the European session and the precious metal is already down over 7% this week.
Economic Outlook
On the data front, The Australian unemployment rate rose to 7.5% in July, the highest since November 1998 and the employment increased by 114,700 in July.
On Tuesday, the Bureau of Labor Statistics announced the latest US inflation numbers, the U.S. consumer price index rose 0.6% last month after rebounding 0.6% in June. Excluding the volatile food and energy components, the CPI jumped 0.6% last month.
Coronavirus update:
The number of people infected with the coronavirus across the world crossed the 20.6 million mark, of which at least 750 thousand people have died and 12.8 million have recovered, according to data released by the Johns Hopkins University. The highest number of coronavirus cases was documented in the United States (5,039,709), Brazil (3,057,470) and India (2,329,638).
Technical Outlook
EUR/USD: The currency pair trading steady above 1.1830 on Thursday supported by a weak dollar.
The important levels to watch for today: Support- 1.1800 and 1.1770 Resistance- 1.1880 and 1.1915.
GBP/USD: The British pound rebounded from the previous session lows, at the time of writing the currency pair hovers near the 1.3100 level.
The important levels to watch for today: Support- 1.3040 and 1.3000 Resistance- 1.3130 and 1.3180.
Quote of the day: Its far better to buy a wonderful company at a fair price than a fair company at a wonderful price- Warren Buffet.
Read more- https://gulfbrokers.com/en/daily-market-report-145
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The official data showed Friday, China retail sales dropped 1.1 per cent on-year, worse than a predicted 0.1 per cent rise and compared with a 1.8 per cent drop in June. Meanwhile, Industrial production grew by 4.8% in July – the same as the previous month, but below predictions from Bloomberg analysts of 5.2% growth. Moving ahead to the North American session, the US retail sales figures for July will release today at 12:30 GMT.
EQUITIES
Global stocks trading mixed on Friday as investors remained cautious due to the stalled U.S. stimulus talks. House Speaker Nancy Pelosi said Thursday the two sides remain “miles apart” in the stimulus talks.
OIL
Oil prices trading lower on Friday after the International Energy Agency cut its forecast for global oil demand for the whole of 2020 to 91.9 million barrels per day. On the other hand, Russian news agencies reported that Russian Energy Minister Alexander Novak had not expected quick decisions on production cuts when OPEC+ monitoring committee meets next week.
CURRENCIES
In The currency market, the Australian dollar trading unchanged after the Reserve Bank of Australia’s governor Lowe said early Friday that rates could remain at record lows for five years. US dollar slightly recovered from the early session lows boosted by better-than-expected data showing weekly jobless claims fell below 1 million for the first time since March.
GOLD
The gold price trading steady above $1940 on Friday, on Tuesday the precious metal suffered its worst one-day rout since 2013 after positive news about several Covid-19 vaccines.
Economic Outlook
On Thursday, U.S. Department of Labor reported that the U.S. Initial Jobless Claims rose by 963k in the week ended Aug 8th, lower than 1.12M anticipated. Dallas Fed President Robert Kaplan said the unemployment levels in the US could remain around 9% by year-end, and any reduction in these levels will depend on how businesses and consumers take steps to contain the spread of the virus.
On the US-China front, US Trade Representative Lighthizer and Chinese Vice President Liu He are likely to meet this Saturday to discuss the implementation of the phase one trade deal among other issues.
Moving ahead today, the important events to watch:
EUROZONE GDP – 09.00 GMT
US Retail sales – 12.30 GMT
Coronavirus update:
Globally, over 20 million (20,532,835) people have been infected with the novel coronavirus, including 747,845 deaths. Germany recorded the highest number of new cases in more than three months, as cases also rose in France, Greece, and Spain. Germany’s Health Minister Jens Spahn said that they are worried about the rise in the coronavirus cases but are confident about the health system. The Covid-19 tally in India crossed the 2.4 million mark after 65,553 fresh cases were registered within a span of 24 hours.
Technical Outlook
XAU/USD: The gold price hovers near $1940 area ahead of US retail sales numbers, supported by $1920(previous all-time high).
The important levels to watch for today: Support- 1940 and 1920 Resistance- 1960 and 1980.
EUR/USD: The currency pair retreated from the fresh weekly highs of 1.1860 and at the time of writing, the pair trading below 1.1800.
The important levels to watch for today: Support- 1.1770 and 1.1710 Resistance- 1.1880 and 1.1915.
Quote of the day: Wide diversification is only required when investors do not understand what they are doing – Warren Buffet.
Read more- https://gulfbrokers.com/en/daily-market-report-146
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