Daily Market Report by GulfBrokers 2020-2021

[Colin Lewis]

Too true. They are the first ones to sell when we get back to the office life though

 

[Ollly555]

Certainly better than it used to be

 

[ForexWarrior2020]

Very nice info thanks!

 

[ForexWarrior2020]

Zoom has been such a move!

 

[syamfx2020]

Democrat Joe Biden was sworn in as the 46th president of the United States on Wednesday. In his inauguration speech, Biden emphasized the importance of national unity, public service, and racial equity.

EQUITIES

Wall Street ended at a record high on Wednesday on hopes of further fiscal stimulus measures under the Biden administration. Netflix shares rose 17% and climbed to a new record high on Wednesday after strong Q4 financial results. On the earnings front, IBM (NYSE: IBM) and Intel (NASDAQ: INTC) scheduled to report financial results today after the market close.

OIL

Crude oil prices trading lower on Thursday after weaker-than-expect API inventory data. The data showed the US oil inventories increased by 2.6 million barrels in the week to January 15th.

CURRENCIES

In the currency market, the Canadian dollar surged to fresh 2-year high on Wednesday following the positive comments from Bank of Canada. On the other hand, the EURO trading steady above 1.2140 ahead of European Central Bank interest rate decision and press conference by President Lagarde.

GOLD

The gold price jumped to a fresh weekly high of $1874 on Thursday supported by the weaker dollar and the rise in coronavirus cases in the US and other countries.

Economic Outlook

On the data front, the Bank of Canada elected to keep its benchmark interest rate steady at 0.25 per cent on Wednesday. Bank governor Tiff Macklem has said the key rate won't move from near-zero until inflation is back at the bank's two-per-cent target.

Bank of Japan left its monetary policy unchanged on Thursday. "Our projections could change depending on developments regarding the pandemic and how they affect domestic and overseas economies. Uncertainty is therefore extremely high," the BOJ said.

Moving ahead today, the important events to watch:

Eurozone – ECB interest rate decision: GMT – 12.45

US – Jobless claims: GMT – 13.30

US – Building permits: GMT – 13.30

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 96.3 million. The United States has reported 24.2 million confirmed cases and has had more than 402,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

AUD/USD: The currency pair spiked after the Australia unemployment rate unexpectedly dropped to an eight-month low of 6.6% in December. While considering the recent bullish move the pair will face strong resistance at 0.7800/0.7830.

The important levels to watch for today: Support- 0.7720 and 0.7680 Resistance- 0.7780 and 0.7820.

GOLD: The yellow metal slightly retreated from the daily tops. At the time of writing, the gold price trades below $1870.

The important levels to watch for today: Support- 1864 and 1856 Resistance- 1875 and 1884.



Quote of the day: I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have – Paul Tudor Jones

Read more- https://gulfbrokers.com/en/daily-market-report-243

 

[ForexWarrior2020]

Really interesting to see how Biden affects the markets

 

[syamfx2020]

Both Tesla and Bitcoin (BTC) price has had a strong rally, making it one of the best-performing assets in 2020. Tesla joined the prestigious Standard & Poor's 500 stock index on December 21 after posting five consecutive quarters of profit. $TSLA surpassed Facebook in terms of market value, becoming the fifth most valuable company in the S&P 500.

Bitcoin climbed to a new all-time high last week. The recent Bitcoin rally boosted after the US-based online payments company PayPal allowed its customers to use the virtual currency on its network. Several major banks also exploring the possibility of allowing the issuance of virtual currencies.

Tesla and Bitcoin fundamental outlook​

Tesla reported its fifth consecutive quarterly profit on October 22, 2020, with revenue of US$8.8 billion. The automaker delivered 139,300 vehicles in this quarter, beating the company’s previous record of 112,000 vehicle deliveries in the fourth quarter of 2019. The company will release its Q4 financial results on Wednesday, Jan. 27.

During the last week, Bitcoin (BTC) dropped more than 10% following the bearish comments from the European Central Bank President Christine Lagarde. “Bitcoin is a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity,” Christine Lagarde said.

$TSLA technical outlook​

Tesla shares rallied more than 700% in 2020. Technically the stock overall momentum remained bullish, but during the last week, the stock fell around 6% after the stock showed some weakness in the upside run. On Tuesday, the stock closed 2.2% higher after the automaker starts delivering first Shanghai-made Model Y crossovers in China.

In the short term, the key level remains this month high $880 as a break above would increase the potential of an extension towards $1000/1050 over the coming days. On the flip side, any pullback might now be seen as a buying opportunity.

BTCUSD technical outlook​

The cryptocurrency rose more than 300% in 2020 and rallied by 50% in December alone. On Tuesday, the BTC closed slightly lower after the Treasury secretary nominee and former Federal Reserve chair Janet Yellen said that cryptocurrencies are being used "mainly for illicit financing."

In the short term if the price breaks above 38,200 which would open doors towards 40000/40400 and above that 41300 is next. On the flip side, if it breaks below 33400 then the next important support levels to watch 31000/30,400 and 28300.

Conclusion​

According to Gulf Brokers, Bitcoin may give higher returns while it is incredibly speculative and highly unpredictable, so it’s better to diversify with more secure assets. Tesla has acquired a substantial market share in the electric vehicle market. The company makes good on its promise to keep ramping up deliveries. In 2020, Tesla delivered 499,550 cars to customers and produced 509,737 units. In addition, production at the new Gigafactory in Shanghai should help boost future growth, as China has the biggest electric vehicle market. Tesla is a value-based asset, on the other hand, as a corporate share it is still a volatile kind of instrument and investors should take into account the risks of losing their investments.

Trading is risky and your entire investment may be at risk. Please ensure that you fully understand the risks involved.

Read more- https://gulfbrokers.com/en/tesla-or-bitcoin-two-ground-breaking-assets-of-the-covid-era

 

[Ollly555]

Bitcoin is more fun

 

[syamfx2020]

Tech stocks Intel (NASDAQ: INT) and IBM (NYSE: IBM) reported Q4 financial results on Thursday.

Intel Q4 earnings and revenue beat the Wall Street estimates while IBM posted mixed results.

“Intel is in a strong strategic and financial position as we make this leadership transition and take Intel to the next level.” Intel CEO, Bob Swan said.

Both Intel and IBM shares fell 4% and 7% in extended trading on Thursday.

 

[syamfx2020]

UK and Australia reported the latest retail sales data on Friday. UK December sales rose 0.3% on the month, better than 4.1% drop seen in November while the figures came well below market forecasts of 1.2%. On an annualized basis, the UK retail sales rose by 2.9% in December versus 4.0% expected.

During the Asian session, Australian reported a larger-than-expected 4.2% drop in December retail sales, following the 7.1% jump in November.

EQUITIES

US futures and Asian shares slipped lower on Friday amid the resurgence of coronavirus cases in China and US. The U.S. reported 4,200 deaths for Wednesday, the second-highest daily number ever.

On the earnings front, Tech stocks Intel (NASDAQ: INT) and IBM (NYSE: IBM) reported Q4 financial results on Thursday. Intel Q4 earnings and revenue beat the Wall Street estimates while IBM posted mixed results.

OIL

Crude oil prices extend slide ahead of EIA inventory data that will come out at 16:00 GMT. The bearish pressure started after the API oil inventories increased by 2.6 million barrels in the week.

CURRENCIES

In the currency market, the Australian dollar retreated from the previous session highs after disappointing retail sales data for December. During the previous session, the currency pair climbed to fresh weekly highs supported by strong employment data. Meanwhile, the New Zealand dollar trading steady on Friday after better-than-expected inflation figures.

GOLD

The gold price trading slightly lower on Friday after the US dollar rebounded from the fresh weekly lows. The US dollar received moderate support on Thursday following better-than-expected Housing and manufacturing in the Philadelphia region.

Economic Outlook

On the data front, US jobless claims fell marginally from the prior week but remained at 900,000. While the Philadelphia Fed Manufacturing Index in the US jumped to 26.5 in January of 2021 from a revised 9.1 in December.

On Thursday, ECB policymakers left key interest rates on hold and leave its bond-purchase stimulus program unchanged. “We are monitoring very carefully exchange rates.”

Moving ahead today, the important events to watch:

US – Existing home sales: GMT – 15.00

US – Crude oil inventories: GMT – 16.00

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 97.1 million. The United States has reported 24.4 million confirmed cases and has had more than 407,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD: The currency pair surged to new session highs n Friday lifted by the mixed Eurozone and Germany manufacturing data.

The important levels to watch for today: Support- 1.2150 and 1.2110 Resistance- 1.2200 and 1.2230.

GOLD: The yellow metal capped the recent upside move after the metal failed to break above the strong resistance area $1875.

The important levels to watch for today: Support- 1856 and 1840 Resistance- 1870 and 1876.

Quote of the day: The greatest enemies of equity investor are expenses and emotions.

Read more- https://gulfbrokers.com/en/daily-market-report-244