Daily Market Report by GulfBrokers 2020-2021

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Casino sector stocks showing positive price momentum this week despite the overall market sell-off. Shares of the Casio giants Wynn Resorts (NASDAQ: WYNN) and Las Vegas Sands (NYSE: LVS) registered strong gains on Monday after the world’s largest gaming hub Macau, government officials signaled that COVID-19 travel restrictions would be lifted in November for the first time in almost three years. Both the casino operator’s stocks ended almost 10% higher on Monday.

Macau's Prime Minister Ho Iat Seng said e-Visas for visitors from mainland China will resume in a month. Macau is the only place in China where it is legal for citizens to gamble in casinos.

EQUITIES

Losses on Wall Street deepen on Tuesday following the hawkish comments from Chicago Fed President Charles Evans and St. Louis Fed President James Bullard. Fed's Evans expects to raise rates further and hold its stance for quite a while. “I think we need to stay at that higher rate for some time to make sure we’ve got the inflation problem under control.” - Fed President James Bullard said on Tuesday.

OIL

Crude oil futures extend the decline in the Asian session after the release of API inventory data. The data showed that US crude stockpiles declined more than 4 million barrels last week. On the other hand, the strong bearish sentiment is expected to continue in the coming weeks due to demand concern as recession fear puts pressure on energy prices. Moving ahead, the oil traders should closely monitor the release of the inventory data by the Energy Information Administration (EIA).

CURRENCIES

In the currency market, the US Dollar Index, which measures the greenback’s value against the basket of six major currencies price extended the bullish rally against the Euro, AUD, and NZD. Moving ahead to the North American session, the USD traders will now be focused on the speech from Fed chair Jerome Powell.

GOLD

The safe-haven metal has fallen to fresh lows and market sentiment remains weak however the recent sell-off is a little overstretched and we may see some recovery later in the US session. However, the overall momentum remained bearish throughout this month as the central bank's aggressive rate hike policy has dented the bullion’s safe-haven appeal.

Economic Outlook

On the data front, a survey by the Conference Board showed that the consumer confidence index rose to 108 in September, the highest level since April, from 103.6 in August. Meanwhile, new orders for the US manufactured durable goods declined 0.2% month-over-month in August of 2022, following a revised 0.1% drop in July.

Moving ahead today, the important events to watch:

US – Pending home sales: GMT – 14.00

US – EIA crude inventories: GMT – 14.30

Coronavirus update:

Worldwide, more than 614 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 96 million cases and has had more than 1.05 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
Technically the overall momentum remains bearish. On the downside, the immediate support will be 0.9540, below which the slide could extend towards 0.9500. On the upper side, if the pair break above 0.9600 it would open doors towards the next resistance area of 0.9670 and above that 0.9710 is next.



The important levels to watch for today: Support- 0.9540 and 0.9500 Resistance- 0.9600 and 0.9670.

GOLD: The precious metal needs to stay above $1620; otherwise. $1610/00 may be visible soon. On the upper side, $1640 is the key resistance zones to watch, if the metal breaks and closes above this area then the next resistance area to watch is around $1658/65.



The important levels to watch for today: Support- 1618 and 1610 Resistance- 1630 and 1640.

Quote of the day - Think for yourself and don’t let the market direct you. Security prices sometimes fluctuate, not based on any apparent change in reality, but on changes in investor perception- Seth Klarman.

Read more - https://gulfbrokers.com/en/daily-market-report-561
 
The sportswear giant Nike (NYSE: NKE) stock hits a fresh 52-week low of $95 on Tuesday. Nike shares have fallen more than 35% since the beginning of the year. The stock currently struggling to crawl back above the key level of $100.

Nike is one of the largest sportswear brands in the world. The company was initially founded as Blue Ribbon Sports and became Nike in 1971. $NKE a top-performing stock over the last 40-plus years since the company went public in December 1980 with an offering price of $22. However, the stock has been under pressure this whole year due to ongoing issues in the supply chain and lagging sales in China.

Nike is set to announce its last-quarter financial results on Thursday, September 29, after the markets close. The company is expected to post quarterly earnings of $0.92 per share and revenues are expected to be $12.28 billion.

Nike (NYSE: NKE) technical outlook​

The stock remains bearish on the technical review. Looking at the $NKE from a very short-term perspective If the recent selling pressure continues the next strong support levels are to watch at $94 and $89. On the upper side, if the stock regains momentum and stays above $100 then the stock may eventually rise back to above $110/114.

Read more - https://gulfbrokers.com/en/nike-stock-stays-below-100-ahead-of-the-earnings-call
 
Last week, global stocks and precious metals erased the weekly gains as investors continued to bet on further Federal Reserve tightening to bring decades-high inflation under control after the release of a strong US labor report. The employment data showed the US economy added 263,000 jobs in September, above market estimates and the unemployment rate unexpectedly fell to 3.5%.

Global stocks and metals started the new week on a bearish note after explosions rocked multiple cities across Ukraine on Monday morning, including Kyiv. Moving ahead, this week all eyes will be turning to the US inflation data which will give us the latest insight into whether inflation continues to rise further upside.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be JP Morgan, Wells Fargo, Morgan Stanley, Citi, Domino's and Delta Airlines.

GOLD

The safe-haven metal reached a fresh 3-week high of $1730 last week but the metal ended lower on Friday after the better-than-expected US NFP data reinforced the Fed’s stronger rate hike cycle. This week's biggest driver for the greenback is the minutes from the latest Federal Open Market Committee (FOMC) Minutes and the US CPI figures.



This week, the metal has critical resistance at $1715 breaking above this resistance level then expect the market to zoom up to $1720/25. On the downside, $1688 remains the crucial support area to watch, any break below this level will open doors to $1680 and $1676.

DOLLAR INDEX

The dollar index turned bullish again at the end of last week after we saw strong bearish sentiment in the first 2 days of the week. On Friday, the index regained strong upside momentum following the release of the US employment report. The main attraction for the USD this week is the FOMC meeting minutes, US CPI data and FED policymaker's comments.



Technically the overall momentum remains mixed and the initial bias remains neutral for the upcoming week. The key resistance is located for the pair around 113.10, a break above this level will confirm a possible move to 113.30/50. On the downside, any meaningful pullback now seems to find some support near the 112.20 zones, below which the slide could extend further towards the 111.90/50 regions.

EURUSD

The currency pair started the last week on a positive note. The early risk-on theme and broader US dollar declines nudged the euro-dollar up to a 0.9995 high but it failed to extend the rebound after the king dollar regained bullish momentum. Moving ahead, no important economic events are expected from the Eurozone this week, so the US dollar movement will continue to play a vital role in the Euro's future direction.



This week, the immediate support will be the same as last week's low at 0.9725, below which the slide could further get extended towards 0.9700 and then 0.9680. On the flip side, the key resistance is seen at 0.9800/15 any break above this level will open a minimum of 0.9860 and 0.9910.

DOW JONES

Dow futures extended the losses on Monday morning driven by geopolitical risks and growing calls from Federal Reserve officials for higher interest rates to fight inflation. This week is expected to be a busy one for Dow traders, with the main focus on the FOMC minutes on Wednesday as well as the earnings results from big US investment banks on Friday.



The technical scenario is absolutely bearish. While considering the recent bearish momentum the Dow may find strong support again near 29,000. On the upper side, a close above 29,800 is now needed to ease bearish pressure while bulls need to see a close above 30,000 to shift focus back to the 30,400/500 region.

Read more here with charts - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-50
 
EURUSD opens the week broadly lower. As of this writing, EURUSD hovers near 0.9700. The currency pair got an early lift during the last week but reversed from the early gains after the US dollar regained bullish momentum. Moving ahead, again the trend of the euro would largely depend on the trend of the dollar index and updates on the Russia -Ukraine war.

Technically the current price action signals suggest that a medium-term bearish trend remains intact. However, the currency pair can rise if it rebounds back to above the 0.9800 level again, any break and closes above this level the next levels to watch are 0.9910 and 1.0000. Nevertheless, if it continues to fall, the slump will quickly extend toward the 0.9630/00 mark.

EQUITIES

US stock futures and global stocks remain under pressure due to heightened geopolitical tensions and rising risks of a recession worldwide. Meanwhile, JPMorgan CEO Jamie Dimon warned that the US and global economy are likely to enter recession by the middle of next year, while the IMF and World Bank saw rising risks of a global slowdown.

OIL

Crude oil futures extend the decline on Tuesday morning, pressured by expectations of weaker global demand and by U.S. dollar strength ahead of Wednesday’s Federal Open Market Committee (FOMC) Meeting Minutes and Thursday’s US inflation data for September.

CURRENCIES

In the currency market, the US Dollar Index, which measures the greenback’s value against the basket of six major currencies almost flat on Tuesday, but the Index remained in favour as a safe haven currency as investors anticipate the US central bank will raise interest rates faster and further than other developed countries.

GOLD

The safe-haven metal trading marginally lower on Tuesday and the upside pressure clearly weakening amid a solid ceiling in place, the near-term bias points to precious metal weakness in the rest of the week ahead, when volatility is likely to be higher than usual due to soaring inflation would prompt central banks to tighten monetary policy abruptly.

Economic Outlook

On the data front, the UK reported the latest employment report. The unemployment rate for June to August 2022 decreased by 0.3 percentage points in the quarter to 3.5%, the lowest rate from December to February 1974.

Coronavirus update:

Worldwide, more than 621 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 96 million cases and has had more than 1.06 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
Technically the overall momentum remains bearish. For today, the first nearest support level is located at 0.9670. In case it breaks below this level, it will head towards the next support level which is located near 0.9650/40. However, a fresh demand for the pair can be anticipated once the Euro rises above the 0.9750 resistance.



The important levels to watch for today: Support- 0.9670 and 0.9650 Resistance- 0.9720 and 0.9750.

GOLD: For today, $1660 remains the key support level. If the metal breaks below $1660, the slump will quickly extend toward the $1650/45 mark. On the flip side, the first resistance at $1774 any break above this level will open at $1780/85 minimum.



The important levels to watch for today: Support- 1660 and 1655 Resistance- 1674 and 1680.

Quote of the day - "Stocks are simple. All you do is buy shares in a great business for less than the business is intrinsically worth, with management of the highest integrity and ability. Then you own those shares forever." - WARREN BUFFETT.

Read more - https://gulfbrokers.com/en/daily-market-report-562
 
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Global markets remained shaky due to growing concerns about a global economic slowdown. The economic activity continues to slow across advanced economies including the major economies like the USA and Europe is likely on the brink of a recession due to the war-induced energy crisis.

Recently United Nations (UN) projected that global GDP will slow down to 2.2 per cent by next year and the World Trade Organization (WTO) has also significantly lowered its forecast for world trade growth for 2023, to 1.0% against 3.4%.

During the last weeks we saw that the global stock markets slightly rebounded after reaching their fresh year lows but retreated after the Fed and ECB policymakers insisted, they would aggressively tighten policy to fight inflation.

An economic slowdown can be caused because of various reasons. Here’s a closer look at 4 factors that cause the global economic slowdown.

Russia’s invasion of Ukraine

Russia’s war in Ukraine has led to a European energy crisis and manufacturing was slowing in the Eurozone since February when the conflict in Ukraine started. European countries are heavy dependence on Russia for its Energy requirements and Russia has already reduced natural gas supplies to 13 EU member nations as European governments bolster their support for Ukraine. Now Europe is struggling to contain an Energy crisis that could lead to a deep economic recession. Gas prices have recently hit record levels in Europe and record gasoline prices pushed global inflation to a new high.

Soaring inflation

Inflation has reached multi-decade highs in many parts of the world. High prices of food and energy have been the main drivers of inflation. The unprecedented rise in retail inflation numbers over the last few months has left many in the government worried. US inflation has reached a 40-year high this year and in Germany, inflation is at its highest level in more than a quarter century. Higher inflation prompted the major central banks to increase interest rates which led to a slowdown in economic activities.

Aggressive monetary tightening in major countries

Soaring inflation forces central banks to tighten monetary policy as their mandate is to maintain price stability. The U.S. Federal Reserve raised interest rates by 0.75% for the third consecutive time in the September meeting. ECB raised rates by a bigger-than-expected 75 basis points in September and signaled further hikes should be delivered in coming months. Markets are now pricing in a 75-bps rate hike at the next Fed and ECB meeting next month. High-interest rates can cause a recession. Higher interest rates increase the cost of borrowing, reduce disposable income, and therefore limit the growth in consumer spending.

Extreme lockdowns in China

The other possible reason could be the impact of extended lockdowns in China. The world's second-largest economy is in trouble and the slowdown has been worse than anticipated due to its property slump and zero-COVID strategy. Sales in the housing market dropped by 30% year on year in the first eight months of 2022. Chinese economic slowdown will have an adverse effect on global economic growth.

Conclusion

There is a lot of skepticism among investors about aggressive interest rate hikes across the globe to stave off decades-high inflation and also stoke fears of a global recession. However, the recession can be imminent if inflation starts to come down. So, watch closely the upcoming inflation reports. US will announce on Thursday (October 13) its consumer price index (CPI) for September, which measures the change in the prices of goods and services. The inflation data could determine the size of the US Federal Reserve's rate hike at next month's policy meeting.

Check out the original article here - https://gulfbrokers.com/en/4-reasons-why-the-global-economy-is-slowing-down
 
Bitcoin, the world's largest and most popular cryptocurrency remain under pressure and struggling to find upside momentum amid lingering concerns over the aggressive central bank tightening to bring inflation back under control. $BTCUSD has been moving in a tight range between $20,500 and $18,200 since September 15, 2022. The market is likely to encounter a price breakout if it continues to fluctuate in a tight range. However, as of this writing, the crypto pair slightly recovered from the weekly lows.

Moving ahead, Bitcoin traders and investors should closely monitor the economic releases this week, U.S. Federal Reserve minutes and key US inflation data for clues on the pace of future interest rate hikes.

From a short-term technical perspective, the 18,800 area of confluence has recently been held as a firm support, failure to defend the mentioned support levels has the potential to drag the pair further towards the 18,000-support zone. On the upper side, in case the pair manages to settle above 19,700, it will head towards the next resistance level at 20,500.

EQUITIES

Wall Street ended mixed on Tuesday and global stocks opened flat on Wednesday as investors are keeping a close watch on the global central bank's actions as they try to assess the impact of aggressive rate hikes on global growth.

On the earnings front, the beverage giant PepsiCo (NASDAQ: PEP) is scheduled to announce Q3 results on Wednesday before the market open.

OIL

Crude oil prices struggling to find the upside momentum due to the strong US dollar and the world’s largest oil importer China’s Covid-19 outbreak threatens demand. Moving ahead, oil traders should closely monitor the release of the OPEC monthly report, which is set to be released later today.

CURRENCIES

In the currency market, The New Zealand dollar posted modest gains, while the Australian dollar ranges remain relatively narrow as it sticks around near unchanged levels since the trading session in Asia. Meanwhile, the US dollar remains steady as Investors have been buying into the safe-haven currency as global market sentiment remains cautious.

GOLD

The safe-haven metal dropped to as low as $1660 on Tuesday but recovered since then. Moving ahead, the next two days are littered with key U.S. economic figures and any market disappointment over the outcome of them could potentially support the gold.

Economic Outlook

On the data front, UK Gross Domestic Product dropped to -0.3% MoM in August versus 0.0% expected and 0.2% prior whereas the Industrial Production and Manufacturing Production also slumped into the negative territory during the stated month.

Moving ahead today, the important events to watch:

US – PPI: GMT - 12.30

US – FOMC meeting minutes: GMT – 18.00

Coronavirus update:

Worldwide, more than 621 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 96 million cases and has had more than 1.06 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
The currency pair needs to stay above 0.9680; otherwise. 0.9600 may be visible soon. On the upper side, 0.9780 is the key resistance zones to watch, if the pair breaks and close above this area then the next resistance area to watch is around 0.9830/50.



The important levels to watch for today: Support- 0.9700 and 0.9680 Resistance- 0.9750 and 0.9780.

GOLD: For today, 1660 is the immediate support level. If the pair breaks below 1660, the slump will quickly extend toward the 1650/45 mark. On the flip side, the bullish breakout of 1685 is likely to push the metal into a new trading zone, which may offer further buying opportunities until 1695 and 1700.



The important levels to watch for today: Support- 1660 and 1648 Resistance- 1682 and 1690.

Quote of the day - Focus, patience, wise discernment, non-attachment —the skills you acquire in meditation and the skills you need to thrive in trading are one and the same. Yvan Byeaje.
 
The dollar index, which compares the value of the dollar to those of six other currencies slightly retreats from the highs ahead of the release of the US CPI report that might influence the Federal Reserve’s decision on whether to act more aggressively. The inflation data is set to be released at 12:30 GMT. The market participants expect the annualised inflation rate to ease to 8.1% in September, from 8.3% in the previous month. If the data came out higher than 8.1%, the king dollar will regain strong bullish momentum because high inflation could force the FED to announce another big rate hike, lending more support to the US dollar.

EQUITIES

UK shares remain under pressure, the strong bearish sentiment further fueled by weak UK GDP data. The data showed a contraction for the UK economy during August. Meanwhile, US stock futures struggling to find the upside momentum after the FED minutes for September indicated that interest rates may remain higher for longer.

On the earnings front, major airline carrier Delta Air Lines (NYSE: DAL) is scheduled to announce Q3 results on Wednesday before the market open.

OIL

Crude oil futures extend the decline on Thursday after OPEC slashed its global oil demand growth forecasts. The bearish momentum is also driven by the weak API report. The report showed that US crude stockpiles surged by more than 7 million barrels last week.

CURRENCIES

In the currency market, the GBPUSD extended the rebound on Thursday boosted by a report suggesting the Bank of England could extend its emergency bond repurchases. While early this week the BoE announced plans to widen its purchases of UK government bonds to include inflation-linked bonds from October 11 until October 14. “The beginning of this week has seen a further significant repricing of UK government debt, particularly index-linked gilts. Dysfunction in this market and the prospect of self-reinforcing ‘fire sale’ dynamics pose a material risk to UK financial stability,” – BOE said.

GOLD

The safe-haven metal recovered back to near $1680 on Thursday morning. However, the overall momentum remained bearish this whole week after the US Federal Reserve and European Central bank showed the central bank’s commitment to fighting inflation.

Economic Outlook

On the data front, the US PPI inflation came above expectations for September. On the other hand, Federal Reserve released the minutes from last month’s FOMC meeting. The minutes highlighted their concern that the current level of high inflation is unacceptable.

Moving ahead today, the important events to watch:

US – CPI: GMT - 12.30

US – Jobless claims: GMT – 12.30

US – EIA crude inventories: GMT – 15.00

Coronavirus update:

Worldwide, more than 621 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 96 million cases and has had more than 1.06 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
For today, the first support for the pair appears to be around 0.9700, in the short-term any break below 0.9700 the next downside level is to watch 0.9670/50. On the other upper side, the immediate resistance is around 0.9780 any break and close above this level will open at 0.9830/50.



The important levels to watch for today: Support- 0.9700 and 0.9660 Resistance- 0.9780 and 0.9830.

GOLD: Technically the overall momentum remains bearish. However, we can see that the metal slightly rebounded after touching the fresh weekly low. On the upper side, If the metal continues the upside momentum and presses back above 1685 then the key resistance area to watch is 1695/1700.



The important levels to watch for today: Support- 1665 and 1658 Resistance- 1685 and 1690.

Quote of the day - Sell a stock only when you have found a new stock that is a 50% better bargain that the one that you hold – John Templeton.

Read more - https://gulfbrokers.com/en/daily-market-report-564
 
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Global markets finished last week in negative territory amid concerns about the outlook for interest rates following the release of stronger-than-expected inflation data from the US and China. China's consumer price index (CPI), a main gauge of inflation rose at its fastest rate in over two years in September. While US consumer prices increased more than expected in September, the CPI increased by 8.2% after rising 8.3% in August.

This week, Investors and traders should shift their emphasis from economic data to the Q3 earnings season. The third quarter earnings season is expected to be strong with sectors such as banking, technology, entertainment and airlines likely to report the latest financial results.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Netflix, Telsa, Snap, American Airlines, IBM and Bank of America.

GOLD

A strong U.S. dollar and rising interest rates are creating headwinds for gold. The safe-haven metal plunged to a fresh monthly low of $1640 last week after the bigger-than-expected jump in Consumer Price Index has solidified expectations the Federal Reserve will raise another 75 basis point rate hike in November. For this week, the main drivers for the precious metal remain the geopolitical tensions, inflation risks and the movement of the US dollar.



For this week, the first key support area is around $1630. On the upper side, the short-term resistance at $1660 any break above this level will open at $1672 then $1682/85. On the other side, if the metal break and close below $1630, the next immediate support to watch is $1620/08.

DOLLAR INDEX

The US dollar index started the new week on a mixed note after the British pound gained bullish momentum ahead of the UK Chancellor Jeremy Hunt's emergency fiscal statement, which is set to be released later today. For the US dollar, the main attraction for this week is Investors waiting for the latest comments from the FED policymakers after the release of stronger-than-expected US inflation data last week.



Technically the overall momentum remains bullish. This week, If the bullish momentum continues then the next upside level is to watch 114 and 114.60. On the downside, any meaningful pullback now seems to find some support near the 112.40/20 zones, below which the slide could further get extended towards the 111.80/50 regions.

EURUSD

The currency pair struggling to find the upside momentum as the US Dollar remains strong. The sustainability of any gain in the currency pair in the coming days will largely depend on how the US dollar behaves. Moving ahead, the main attraction for EURO this week is the Eurozone inflation figures on Wednesday.



Technically the overall sentiment remains bearish. However, a fresh demand for EURUSD can be anticipated once the pair rises above the 0.9800 resistance. Nevertheless, if it continues to fall near the 0.9630 support, the slump will quickly extend toward the 0.9580/40 mark.

DOW JONES

Dow Jones failed to close above the 30,000 psychological level on Friday following the release of weak US retail sales numbers. While considering the last last two weeks momentum the index can surely rebound in the short term if market sentiment stabilises. This week, the index may continue to remain volatile amidst the ongoing earnings season.



This week, on the downside, 29,100/000 will act as an initial cushion, any break below this area will open doors to 28.700/600. On the flip side, the bullish breakout of 30,500 is likely to push the Dow into a new trading zone, which may offer further buying opportunities until 31,000/200.

Read more -
 
Shares of the global pizza giant Domino's Pizza (NYSE: DPZ) jumped more than 10% on Thursday after its revenue in the fiscal third quarter came in better than expected. The company revenue in its latest quarter increased 7.1% to $1.07 billion but its adjusted earnings still declined 14% to $2.79 per share, which was below the $2.97 expected.

  • Earnings per share: $2.79 vs. #2.97 expected
  • Revenue: $1.07 billion vs. $1.06 billion expected
"I'm encouraged with our performance and the sequential improvements we made during the third quarter. Our team members and franchisees around the world continued to show the agility and perseverance required to operate in a volatile macro-economic environment," Russell Weiner, Domino's CEO, said in the release.

The strong last quarter revenue was boosted by steady demand for its pizza and deep promotions. During the quarter, Domino's U.S. same-store sales increased by 2.0% while international same-store sales declined by 1.8%. On the other hand, the Company's Board of Directors declared a $1.10 per share quarterly dividend on its outstanding common stock for shareholders of record as of December 15, 2022, to be paid on December 30, 2022.

Domino's stock retreats back to below $320 after hitting a fresh weekly high of $336. However, the stock is still down nearly 40% for the year. In the short term, the key resistance is located above the last week's high around $336, a break above this level will confirm a possible move to $345 and $370. On the downside, if the stock loses the $300 handles, then we expect a move toward $275 and $270.

Read more here - https://gulfbrokers.com/en/dominos-shares-jump-after-q3-revenue-beat
 
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Wall Street ended sharply higher on Monday after a couple of days of strong bearish sentiment supported by better-than-expected earnings results from the big US investment banks and U.K. Treasury Chief Jeremy Hunt reversing nearly all Tax plans to reassure markets. Moving ahead, investors will be on high alert Today as the streaming giant Netflix reports third-quarter earnings after the market close.

EQUITIES

UK shares ended higher on Monday after reports that the Bank of England (BoE) would delay quantitative tightening until bond markets calmed down. On the other hand, the new British economy minister, Jeremy Hunt, has announced a new fiscal plan contrary to the tax cuts of Liz Trus.

OIL

Crude oil futures still struggling to find strong upside momentum despite a weaker US dollar as the investors remain concerned about tighter global supplies as OPEC and its allies, including Russia, agreed to cut production further.

CURRENCIES

In the currency market, the Euro holding the previous session gains against the US dollar. The British pound remains one of the strongest currencies this week. The New Zealand dollar extended the gains against the greenback following the release of New Zealand’s quarterly inflation report. New Zealand inflation rose to 2.2 percent in the three months to September, while the annual inflation rate edged down to 7.2 percent.

GOLD

The safe-haven metal reversed from the previous session gains after the metal failed to close above the key resistance area of $1670/72. As of this writing, the precious metal trades near the $1650 zone. Moving ahead, gold traders should closely monitor the comments from FED policymakers Bostic and Kashkari.

Economic Outlook

On the data front, the Reserve Bank of Australia (RBA) published the minutes of the last monetary policy meeting. "A smaller increase than that agreed at preceding meetings was warranted given that the cash rate had been increased substantially in a short period of time and the full effect of that increase lay ahead," the minutes noted.

Coronavirus update:

Worldwide, more than 624 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 96 million cases and has had more than 1.06 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
On the daily time frame, the euro is currently supported at 0.9800, and the resistance is around 0.9870. On the upper side, the long-term buyers should wait for a daily close above 0.9910.



The important levels to watch for today: Support- 0.9800 and 0.9770 Resistance- 0.9870 and 0.9910.

GOLD: For today, If the bullish momentum continues then the next upside level is to watch $1662 and $1672. On the other hand, the next immediate support prevails at $1645, a further breakout of $1645 can lead the metal towards $1640/35 levels.



The important levels to watch for today: Support- 1645 and 1640 Resistance- 1662 and 1670.

Quote of the day - "To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks” - BENJAMIN GRAHAM.

Read more - https://gulfbrokers.com/en/daily-market-report-565
 
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