DAILY MARKET REPORT -Thursday, Jan 28, 2021

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European stocks plunged as the vaccine row between the European Union and AstraZeneca Plc continued to weigh regarding the company’s failure to meet a target to deliver 400 million doses of its COVD-19 vaccine to the regional bloc.

“Basically, we said we are going to try our best, but we can’t guarantee we’re going to succeed. In fact, getting there, we are a little bit delayed.” AstraZeneca CEO, Pascal Soriot said.

On the other hand, the recent downside pressure fueled by the negative comments from ECB policymaker, Klaas Knot. “ECB has tools to counter euro appreciation if needed. The bank could decide to cut its deposit rate further below zero” Knot said.

EQUITIES

US futures extend lower on Thursday following disappointing financial results from the Facebook (FB) and Tesla (TSLA). US stock markets fell by over 1% – the biggest single-day percentage drop in three months.

On the US earnings front, American Airlines (NASDAQ: AAL), McDonald’s (NYSE: MCD) and Mastercard (NYSE: MA) reporting earnings today before the bell while Tesla Visa (NYSE: V) and Skyworks Solutions (NASDAQ: SWKS) is scheduled to report results after the market close.

OIL

Crude oil price ignored the strong inventory data from EIA and trading lower on Thursday. The EIA data showed a draw of 9.910 million barrels for the week ended Jan. 22, compared to the 430,000-barrel draw in the forecasts

CURRENCIES

In the currency market, the Dollar index trading strong supported by global equity market sell-off. As we know the during periods of uncertainty or turmoil US dollar is often viewed as an attractive alternative to other assets.

GOLD

The safe-haven metal slightly rebounded from the previous session losses supported by amid rising virus cases. During the previous session, the metal dropped to a fresh weekly low of $1831.

Economic Outlook

On the data front, US Core Durable Goods Orders for December came in, showing an increase to 0.7%, against the forecast of 0.5%.

On Wednesday, US Federal Reserve left U.S. monetary policy unchanged, as expected. “The economy is a long way from our monetary policy and inflation goals, and it’s likely to take some time for substantial further progress to be achieved.” Fed Chair Powell said.

Moving ahead today, the important events to watch:

Germany: Consumer Price Index – 13.00 GMT

US: GDP– 13.30 GMT

US: Jobless claims – 13.30 GMT

US: New home sales– 15.00 GMT


Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 100.4 million. The United States has confirmed over 25.4 million cases and has had more than 426,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair trading under pressure following the negative comments from ECB policymaker Klaas Knot. At the time of writing, the pair hovers near the 1.2100 area.

eurusd


The important levels to watch for today: Support- 1.2070 and 1.2030 Resistance- 1.2130 and 1.2180.



GOLD: The precious metal trading at $1840 during the European session. Any break below the previous session low $1830 will open the doors to $1820 and $1814. On the upper side, the immediate resistance at $1850.

gold neww


The important levels to watch for today: Support- 1830 and 1820 Resistance- 1850 and 1856.

Quote of the day: Investing is laying out money now to get more money back in the future – Warren Buffet.

Read more-https://gulfbrokers.com/en/daily-market-report-248
 
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