Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

British Pharmaceutical giant AstraZeneca (NASDAQ: AZN) reported the late-stage trials showed its COVID-19 vaccine was highly effective. AstraZeneca became the third pharmaceutical firm to report its effective coronavirus vaccine, only a few days after US biotech firms Moderna and Pfizer said their Covid-19 vaccine candidates were more than 90% effective. Both the companies have announced that they will start distributing the vaccine as soon as they receive approval from the FDA.

“Today marks an important milestone in our fight against the pandemic. This vaccine’s efficacy and safety confirm that it will be highly effective against COVID-19” AstraZeneca CEO, Pascal Soriot said. Meanwhile, the AstraZeneca shares closed slightly lower on Monday because its COVID-19 vaccine on average is just 70% effective, compared with Moderna and Pfizer.

As per the recent report, Pfizer (NYSE: PFE) will likely be the first vaccine to reach the market. On Friday, Pfizer and BioNTech SE already submitted a request to the FDA for Emergency Use Authorization (EUA) of their mRNA vaccine candidate. The vaccine appears 95% effective at preventing mild to severe COVID-19 disease in a large. Pfizer has a $1.95 billion agreement with the U.S. government to supply 100 million doses of the vaccine, with an option for another 500 million.

On November 17, Moderna (NASDAQ: MRNA) announced the Phase 3 study of mRNA-1273. The trial has met the statistical criteria pre-specified in the study protocol for efficacy, with a vaccine efficacy of 94.5 per cent. By the end of 2020, Moderna expects to produce approximately 20 million doses of its mRNA-1273 vaccine.

Pfizer and Moderna are using experimental technology that employs mRNA while AstraZeneca’s vaccine, called AZD1222, is based on time-tested technology that has been genetically modified to stimulate an immune response against the coronavirus.

On the other hand, Regeneron Pharmaceuticals (Nasdaq: REGN) has received Emergency Use Authorization (EUA) from the US Food and Drug Administration for their COVID-19 antibody therapy. A similar antibody treatment, from Eli Lilly (NYSE: LLY), was also granted emergency approval earlier this month.

Read more- https://gulfbrokers.com/en/coronavirus-vaccine-astrazeneca-join-the-lead

 

[syamfx2020]

EURO rebounded from the previous session lows supported by the weaker US dollar and strong GDP data. The GDP grew by 8.5% in the last quarter, compared to a preliminary estimate of 8.2%. Meanwhile, Germany Ifo Business Climate dropped to 90.7 in November, from a 92.5 in the previous month but above market expectations of 90.1.

EQUITIES

Global stocks trading higher boosted by another coronavirus vaccine posted promising data. On Monday, AstraZeneca (NASDAQ: AZN) became the third pharmaceutical firm to report its effective coronavirus vaccine, after positive news from US biotech firms Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA).

OIL

Crude oil prices extended gains overnight fuelled by the hopes of a recovery on the oil demand outlook. Moving ahead, the investors now await the weekly API report on US crude oil stockpiles due later in the day.

CURRENCIES

In the currency market, the commodity currencies like the Australian dollar and New Zealand dollar extends higher following the positive sentiment in the equity markets and oil prices.

GOLD

Gold price sell-off continues on Tuesday. The precious metal trading below 4-month low during the European session on hopes of coronavirus vaccine developments.

Economic Outlook

On the data front, the US manufacturing index increased from 53.4 in October to 56.7 in November, beating expectations of a decline to 53. While the Flash Services PMI increased to 57.7, against the expected 55.8.

On Monday, the US General Services Administration acknowledged Joe Biden as the apparent winner of the presidential election. The Trump administration has officially commenced the transition process to U.S. President-elect Joe Biden. While Joe Biden has chosen former Federal Reserve Chair Janet Yellen to serve as treasury secretary.

Coronavirus update:

More than 1.3 million people have died from the disease worldwide. Global cases exceed 59 million. The United States has passed 12.2 million confirmed cases, with more than 256,000 deaths from COVID-19, the highest totals in the world. France, the third-worst affected country in the world, reported 4,452 new Covid-19 cases on Monday, the lowest daily increase since September 28th.

Technical Outlook

EUR/USD: The currency pair rebounded back to above 1.1880 after better-than-expected German economic data.

The important levels to watch for today: Support- 1.1850 and 1.1800 Resistance- 1.1900 and 1.1930.

GOLD: The gold price remains under pressure. At the time of writing, the yellow metal trading near the support area of $1810.

The important levels to watch for today: Support- 1810 and 1800 Resistance- 1820 and 1830.

Quote of the day: As a trader, you often walk on the blade. Be careful and don’t step off- Marc Rich

Read more- https://gulfbrokers.com/en/daily-market-report-215

 

[syamfx2020]

Stocks and oil prices cheered the official confirmation of Joe Biden’s victory which means a more generous stimulus package to be deployed as soon as possible. The recent rally also supported by more upbeat news on the coronavirus vaccine. Meanwhile, at first Donald Trump rejected the outcome of the U.S. election, mounting legal action against vote-counting in states where he lost.

On Monday, the US General Services Administration acknowledged Joe Biden as the apparent winner of the presidential election. The Trump administration has officially commenced the transition process to U.S. President-elect Joe Biden.

Few notable financial market movements after the US election outcome:

Dow Jones futures hit 30k​

US stock indices climbed to the highest levels in eight months after Joe Biden's victory in the US presidential race. The news reports about progress in the development of a vaccine for COVID-19 also supported the bullish move. The stocks also gained on hopes that Republicans likely to retain the Senate, which won’t allow Joe Biden to initiate major changes, such as tax increases that may negatively impact corporate profits.

Gold initially rose but later shift into reverse gear​

Gold prices initially bounced higher after the election outcome amid hopes for a large fiscal stimulus package while the price retreated back to below $1900 after upbeat vaccine news dented the safe-haven- the appeal of the precious metal. The precious metal posted the biggest daily decline in over seven years on Monday, November 09 following the optimistic news from Pfizer and BioNtech.

Oil prices gained for a three week in a row​

Crude oil prices enjoyed three consecutive week rally following Biden’s victory in the hopes that he will soon announce a large fiscal stimulus package that could support demand for oil. Considering the recent bullish move the oil investors will closely monitor his future actions as he aims to tackle climate change and support renewable energy development.

US dollar struggling to find an upside momentum​

US dollar remains under pressure amid hopes for a large fiscal stimulus package to prop up the US economy after Joe Biden’s victory. On the other hand, the Asian currencies extend gains against the US dollar as the Democrat Biden coming to power in hopes that Trump’s tariff war against China could be called off.

What’s next?​

Certain advantages of Biden presidency what peoples are anticipating.

• Lowered trade tensions
• the large-scale coronavirus relief package
• Medical expansion

In coming days, the investors will closely monitor the implications of Biden’s leadership on U.S. foreign policy and the stance toward China and the key oil producers Iran and Venezuela.

On the coronavirus front, the number of COVID cases continues to accelerate in the US but Joe Biden and his team have already started working on tackling the ongoing crisis in the country. He has already set up a twelve-member coronavirus taskforce populated by experts in complementary fields.

On the other part, as we know there’s already good preliminary news about an effective vaccine including Pfizer and Moderna. But the big question is how the Biden government is going to handle the vaccine distribution especially reaching rural populations and those without regular access to health care will be difficult.

Read more- https://gulfbrokers.com/en/markets-cheer-a-biden-victory-what-next

 

[syamfx2020]

Gold price slightly rebounded from the previous session lows. The yellow metal plunged more than 3% and closed to near $1800 on Tuesday. Moving ahead to the North American session, the gold investors and traders will keep an eye on the US GDP and durable goods data due later in the session.

EQUITIES

Wall Street ended higher on Tuesday following the news about the President-elect Joe Biden’s transition to the White House. Dow Jones climbed above 30000 levels as market participants anticipate larger fiscal stimulus package to be rolled out once Biden comes to power.

OIL

Crude oil prices trading steady on Wednesday despite weaker-than-expected API inventory data. The data showed a 3.8 million-barrel build in oil inventories last week. Analysts expected a decline to 0.333 million barrels.

CURRENCIES

In the currency market, the EURO rose to a fresh monthly high of 1.1828 during the European session boosted by the weaker dollar and better-than-expected economic data.

GOLD

Gold prices trading above $1810 during the European session ahead of US jobless claims and GDP data. Overall, the momentum remains mixed throughout the day.

Economic Outlook

On the post-Brexit front, European Commission President Ursula von der Leyen told the European Parliament that EU negotiators would do all in their power to reach an agreement with the UK. “These are decisive days for our negotiations with the United Kingdom. But frankly, I cannot tell you today if, in the end, there will be a deal’ “There are still three issues that can make the difference between deal and no deal,” she said.

Moving ahead today, the important events to watch:

US – Initial jobless claims: GMT – 13.30

US – GDP: GMT – 13.30

US – Durable goods orders: GMT – 13.30

US –FOMC meeting minutes: GMT – 19.00

Coronavirus update:

Worldwide, more than 59.4 million people have been confirmed infected and more than 1.4 million have died, according to Johns Hopkins University. The United States has passed 12.5 million confirmed cases, with more than 258,000 deaths from COVID-19, the highest totals in the world. The number of coronavirus infections in Russia rose by 24,7K on Wednesday, down from 23.4K on Tuesday.

Technical Outlook

EUR/USD: The currency pair retreated back to below 1.1900 psychological level. If the bullish momentum continues the next upside levels to watch 1.1950 and 1.20. On the downside, the immediate support around 1.1840.

The important levels to watch for today: Support- 1.1890 and 1.1840 Resistance- 1.1930 and 1.1980.



GBP/USD: The British pound trading lower against the US dollar and EURO following the comments from President-Elect Joe Biden. Mr Biden said: “We do not want a guarded border; we want to make sure we work too hard to get Ireland worked out.

The important levels to watch for today: Support- 1.3300 and 1.3270 Resistance- 1.3340 and 1.3380.

Quote of the day: Remember, your goal is to trade well, not to trade often- Alexander Elder.

Read more- https://gulfbrokers.com/en/daily-market-report-216

 

[syamfx2020]

Technology giants Dell (NYSE: DELL) and HP (NYSE: HPQ) reported better-than-expected last quarter financial results on Tuesday boosted by a huge surge in PC demand due to remote working and distance learning.

$Dell

EPS $2.03 vs $1.40 expected

Revenue $23.48B vs $21.85B expected

$HPQ pre-market 5%

EPS $.0.62 vs $0.52 expected

Revenue $15.26B vs $14.72B expected

BestBuy (NYSE: BBY) shares fell more than 6% on Tuesday despite strong Q3 Earnings after the retailer hold off on offering long-term earnings forecasts.

$BBY revenue grew to $11.85B from $9.76B in the previous year and the stock up by 39% in 2020.

“Today, we are once again reporting strong quarterly results in the midst of unprecedented times" Corie Barry, Best Buy CEO, said.

 

[syamfx2020]

Hello Everyone, Happy Thanksgiving Day! We expect Trading will be thinned out next two days and liquidity is expected to remain low as US financial markets are closed on Thursday and a half-day on Friday.

EQUITIES

Wall Street ended mixed on Wednesday. The Dow and S&P 500 retreated from the all-time highs. European shares are set to open higher on Thursday ahead of ECB Monetary Policy Meeting which is due later in the session.

OIL

Crude oil prices surged to fresh session highs on Wednesday and hit its highest level since early March. The recent rally also supported by the EIA inventory data. The data showed the inventories dropped by 0.754 million barrels in the week ended November 20th, 2020, following a 0.768 million increase in the previous period.

CURRENCIES

In the currency market, the US dollar slipped to the lowest levels in almost three months. On the other hand, the EURO and New Zealand dollar climbed to fresh monthly highs.

GOLD

Gold prices trading steady on Thursday. During the previous session, the yellow metal slightly recovered the losses but retreated back to lower after it failed to break above $1820.

Economic Outlook

On the data front, the US weekly jobless claims increased to 778K during the week that ended on November 20, above forecasts of 730K. While Gross domestic product rose 33.1% during the three months through September.

On Wednesday, FOMC meeting minutes showed that the Fed could provide more accommodation, if appropriate, by increasing the pace of purchases or by shifting its Treasury purchases to those with a longer maturity.

Coronavirus update:

Worldwide, more than 60.1 million people have been confirmed infected and more than 1.41 million have died, according to Johns Hopkins University. The United States has passed 12.7 million confirmed cases, with more than 261,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD: The currency pair ignored weaker-than-expected German economic data and trading steady above 1.1900 boosted by the weaker dollar.

The important levels to watch for today: Support- 1.1920 and 1.1880 Resistance- 1.1960 and 1.20.

GOLD: The yellow metal hit the previous session high of $1818, any break above this level the short-term upside levels to watch $1830 and 1835.

The important levels to watch for today: Support- 1814 and 1806 Resistance- 1821 and 1830.

Quote of the day: The fundamental law of investing is the uncertainty of the future- Peter Bernstein.

Read more- https://gulfbrokers.com/en/daily-market-report-217

 

[syamfx2020]

The American clothing retailer Gap Inc (NYSE: GPS) announced third-quarter financial results after the market close on Tuesday. The company last quarter earnings came below the Wall Street expectations and the revenue for the quarter fell 0.2% to $3.99 billion from $4.00 billion last year, while it beat the estimates of $3.82 billion.

• Earnings per share (EPS): $.25 vs. $.32 expected
• Revenue: $3.99 billion vs. $3.82 billion expected

On the positive side, the company online sales increased 61% during the last quarter and added more than 3.4 million new customers online. The retailer said it will not be providing a fiscal year earnings outlook as the continued rise in coronavirus cases remains a concern.



“The widely-noted recent rise in COVID-19 cases remains a concern, which may impact store traffic. However, with rapidly growing online sales contribution, at over 40% of company sales in the quarter, and the opportunity for market share gains, supported by the significant investment in marketing, the company remains optimistic for the fourth quarter” the company said.



The $GPS stock slipped more than 20% lower on Wednesday after weaker-than-expected financial results while the shares have increased 52% since the beginning of the year.

Read more- https://gulfbrokers.com/en/gap-stock-slips-20-after-earnings-miss-estimates

 

[syamfx2020]

Lack of USD liquidity continues with Thanksgiving holiday while the commodity currencies, the Australian and New Zealand dollar surged to fresh session highs.

On the other hand, GOLD and oil price trading unchanged due to shorted trading day.

 

[ForexWarrior2020]

Really seems like there's a risk on sentiment pushing through

 

[syamfx2020]

Crude oil prices trading slightly lower on Monday ahead of OPEC two days of meetings that begin later today. The investors and traders eagerly waiting for the fresh updates whether the OPEC and other oil-exporting countries will extend large output cuts to balance global markets. OPEC+ previously agreed to raise output by 2 million barrels per day (bpd) in January - about 2% of global consumption - after record supply cuts this year.

EQUITIES

Asian shares traded higher on early Monday lifted by better-than-expected Chinese manufacturing data. On the other hand, US futures started the week on a positive note while at the time of writing the futures are retreated back from the daily highs.

OIL

Crude oil prices ended near to 8- months high on Friday supported by the upbeat vaccine news and democratic leader Joe Biden’s victory.

CURRENCIES

In the currency market, the US dollar fell to a new session and trading the lowest level since April 2018 on Monday. Meanwhile, the commodity currencies the Australian dollar and New Zealand dollar surged to fresh monthly highs.

GOLD

Gold prices extend lower on Monday. The overall momentum remained bearish for this whole month; it is the worst month since November of 2016

Economic Outlook

On the data front, China Manufacturing PMI climbed to 52.1 in November 2020 from 51.4 a month earlier and beating market expectations of 51.5. while the Non-Manufacturing PMI rose to 56.4 prior and 52.1 expected.

This week the main highlights of the economic calendar will be the release of employment data from the US and Canada, Australian GDP and RBA interest rate decision, Eurozone and German retail sales. On the earnings front, Zoom, Salesforce and Snowflake will release their last quarter financial results.

Coronavirus update:

Around the world on Sunday night, there were 62.6 million known cases of COVID-19 and 1.45 million deaths, according to Johns Hopkins University. The United States has passed 13.2 million confirmed cases, with more than 266,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD: The currency pair trading steady on Monday. If the bullish momentum continues the next upside level to watch the psychological level 1.20.

The important levels to watch for today: Support- 1.1940 and 1.1910 Resistance- 1.1980 and 1.2010.

GOLD: The yellow metal plunged to the fresh session low of $1764 on Monday. At the time of writing, the gold price slightly recovered the early session losses and trading above $1770 levels.

The important levels to watch for today: Support- 1764 and 1750 Resistance- 1775 and 1790.

Quote of the day: An IPO is like a negotiated transaction – the seller chooses when to come public – and it is unlikely to be a time that’s favourable to you – Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-218