DAILY MARKET REPORT - Thursday, Sep 03, 2020

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US futures and global stocks trading higher on Thursday supported by positive economic data from the US and other regions. On the other hand, Donald Trump's top infectious diseases official, Anthony Fauci, on Wednesday told NBC: "I believe that by the time we get to the end of this calendar year that we will feel comfortable that we do have a safe and effective vaccine."

EQUITIES

On Wednesday, Wall Street ended higher. The S&P500 climbed to an all-time high in two months, boosted by Nvidia and Microsoft shares. The stocks also received some support on hopes for a COVID-19 vaccine to come as early as next month in some US states.

OIL

Crude Oil prices ignored the positive EIA oil inventory data and fell to a new weekly low. While EIA reported that US gasoline demand fell to 8.78 million barrels per day last week from 9.16 million bpd a week earlier.

CURRENCIES

In the currency market, the British pound slipped to below 1.33 after Bank of Governor Bailey said that the downside risk to forecasts from the coronavirus outbreak is much bigger than for Brexit and increase prospects for more policy easing. Meanwhile, the Bank of England’s deputy governor, Dave Ramsden, said on Wednesday that the level of British economic output would permanently be about 1.5 percentage points lower than it would be had it not been for the pandemic.

GOLD

Gold price edged lower on Thursday as the U.S. dollar strengthened and positive news about a potential COVID-19 vaccine.

Economic Outlook

On the data front, the US released the latest ADP employment report, the data showed the private sector added 428,000 jobs in August, less than half the 1 million expected by forecasters.

On the US-China front, China is reportedly planning substantial policy changes to its 3rd generation semiconductor industry for the next five years through to 2025, in response to US Secretary of State Mike Pompeo’s announcement of several restrictions over Chinese diplomats in the US.

Moving ahead today, the important events to watch:

US Initial jobless claims – 12.30 GMT

UK BoE’s Governor Bailey Speech – 14.00 GMT

US ISM non-manufacturing PMI – 14.00 GMT

Coronavirus update:

The number of people infected with the coronavirus across the world hit 26.0 million, of which at least 863 thousand people have died and 17.2 million have recovered, according to data released by the Johns Hopkins University. Meanwhile, drugmaker GSK and its French peer Sanofi said they expected the first results on their candidate vaccine by December, and if the data turned out to be positive, they plan to request regulatory approval for the product in the first half of 2021.

Technical Outlook

XAU/USD:
The gold price trading below $1940 during the European session, the yellow metal price dropped to $1927 during the Asian session.

audusd


The important levels to watch for today: Support- 1925 and 1910 Resistance- 1940 and 1955.

EUR/USD: The currency pair slightly reversed from the early session lows after better-than-expected Eurozone and Germany PMI numbers.

cruse


The important levels to watch for today: Support- 1.1800 and 1.1780 Resistance- 1.1860 and 1.1890.

Quote of the day: Look at market fluctuations as your friend rather than your money; profit from folly rather than participate in it – Warren Buffet.


Read more- https://gulfbrokers.com/en/daily-market-report-159
 
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