DAILY MARKET REPORT Thursday, June 11, 2020

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Tesla’s stock price climbed above $1,000 on Wednesday, bringing the market capitalization to $188 billion. The stock boosted after the company revealed an internal memo that signalled increased production of its electric Semi trucks. “It’s time to go all out and bring the Tesla Semi to volume production,” said CEO Elon Musk in the memo. “It’s been in limited production so far, which has allowed us to improve many aspects of the design. Production of the battery and powertrain would take place at Giga Nevada, with most of the other work probably occurring in other states,” he added.

EQUITIES

Global shares fell on Thursday after the Fed has eliminated the scenario of a V-shaped recovery for the US economy and sees the American economy is expected to shrink 6.5% this year. On Wednesday, in Wall Street, the Dow closed 1.04% lower and the S&P 500 lost 0.53%. Meanwhile, the NASDAQ added 0.67% to a fresh record helped by gains in Microsoft and Apple.

OIL

Crude Oil prices retreated from the previous high after another record build-up in U.S. crude inventories. The EIA inventories for the week ended on June 5 increased past -1.738M forecast to +5.72M barrels.

CURRENCIES

The US dollar rebounded from three months low on Thursday; the gloomy outlook from the US Federal Reserve boosted the safe-haven currency. The Japanese yen trading at its strongest level after the Japanese Lower House of Parliament approved an emergency budget worth nearly US$300 billion, bringing total stimulus measures to over 40% of GDP.

GOLD

The yellow metal prices trading slightly lower after reached a more than one-week high on Thursday. The gold price rose more than 1% on the previous session after the US Federal Reserve signalled its interest rates to remain there for the next few years.

Economic Outlook

On Wednesday, the Fed committed to using its full range of tools to support the U.S. economy in this challenging time. The central bank maintained the Federal Funds Rate at 0%-0.25% and the policymakers also anticipate no rate change till 2022.

Moving ahead today, the important events to watch:

US initial jobless claims report – 12.30 GMT

US Producer Price Index – 12.30 GMT


Coronavirus Update:

The number of confirmed cases of coronavirus around the world surpassed 7.24million, of which more than 415000 died and over 3 million recovered. Brazil, with 7, 72,416 cases, is the second country to have reported the maximum number of infections after the US followed by Russia (4, 93,023) and the United Kingdom (2, 91,588). Pakistan has registered its highest single-day spike of coronavirus cases with over 5,000 infections in the last 24 hours

Technical Outlook

EUR/USD:
The pair recovered from the early Asian session losses and currently trading above 1.1380.

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The important levels to watch for today: Support- 1.1320 and 1.1240 Resistance- 1.1420 and 1.1470.

GOLD: The gold price trading steady above $1730 during the European session and the next immediate resistance to watch $1745.

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The important levels to watch for today: Support- $1726 and $1718 Resistance- $1745 and $1765.

Quote of the day: Never invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets- Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-103
 
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