DAILY MARKET REPORT - Thursday, July 23, 2020

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The tech giant Microsoft released fourth-quarter earnings on Wednesday after the market close. The company Q4 financial results exceeded expectations boosted by its outperformance in its commercial cloud business.
  • Earnings per share (EPS) $1.46 vs. $1.34 expected
  • Revenue $38.03 billion vs. $36.50 billion expected
“The last five months have made it clear that tech intensity is the key to business resilience. Organizations that build their own digital capability will recover faster and emerge from this crisis stronger,” chief executive Satya Nadella said.

EQUITIES

Global stocks surged higher on Thursday supported by latest earnings results and new stimulus measures. Pfizer shares boosted after the U.S. government agreed to pay the drugmaker and partner BioNTech to secure doses of their experimental Covid-19 vaccine.

OIL

Crude oil price trading higher on Thursday ignored down beat EIA inventory data. The Energy Information Administration (EIA) showed the crude inventories increased by 4.9 million barrels in the week to July 17, while analysts expected a decline of 2.1 million barrels.

CURRENCIES

The EUR/USD continues the upside move and the currency pair touched its strongest level since October 2018. Meantime, the Australian dollar and Chinese yuan trading slower as tensions heightened between the United States and China, after the U.S gave China 72 hours to close its consulate in Houston amid accusations of spying.

GOLD

Gold price trading near the highest levels since September 2011 supported by the weaker Dollar and increased tensions between the U.S and Beijing.

Economic Outlook

On the data front, the US existing home sales jumped 20.7% from the previous month to a seasonally adjusted annual rate of 4.72 million units in June 2020 from a near-decade low of 3.91 million in May, but below market expectations of 4.78 million.

On the earnings calendar, Tesla (NASDAQ: TSLA) shares climbed more than 4% in the after-hours trading after the company’s financial Q2 results exceeded Wall Street estimates. Its market cap is now US$295.337B. The electric vehicle maker reported a net income of $104 million and a positive free cash flow of $418 million.

The important earnings to watch today: Twitter (NYSE: TWTR) and American Airlines (NASDAQ: AAL)

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 15.2 million, of which at least 623 thousand people have died, according to Johns Hopkins. The US is the worst-affected country with 3,915,780 total cases, including 142,312 deaths — more than 460,000 new cases were recorded in one week.

Technical Outlook

XAU/USD:
The yellow metal trading steady above $1880 on Thursday, the next important resistance to watch $1900/10.

audusd


The important levels to watch for today: Support- 1865 and 1850 Resistance- 1880 and 1895.

Dollar Index: The Dollar index is near the crucial support level and at the time of writing the currency pair trading below $95.

cruse


The important levels to watch for today: Support- 94.60 and 94.00 Resistance- 95.70 and 96.40.


Quote of the day: The highest profits are made in trades that show a profit right from the start – Jesse Livermore.


Read more- https://gulfbrokers.com/en/daily-market-report-131
 
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