Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

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The parent company of Snapchat, Snap (NYSE: SNAP) is scheduled to announce third-quarter financial results on Thursday. Consensus forecast EPS of $0.08 on revenue of $1.09 Billion. $SNAP stock has increased by 50% since the start of 2021.

Snap reported blockbuster second-quarter results. The company posted a 116% jump in revenue to $982M and the daily active users (DAUs) rose 22% year over year to 265 million.

EQUITIES

US stock futures trading slightly lower on Thursday. On Wednesday, Wall Street ended mixed after US Federal Reserve official’s stance on tapering. Fed Governor Randal Quarles said that while it is time for the Fed to begin dialling down its bond-buying program.

OIL

Crude oil prices reversed from the early session highs. On Wednesday, the oil prices jumped to a fresh weekly high after the release of EIA inventory data. The data showed US crude stockpiles fell by 431,000 barrels last week against market expectations of a 1.857-million-barrel increase.

CURRENCIES

In the currency market, the dollar index, which tracks the U.S. currency against six major peers slightly recovered the previous session losses. The Australian dollar retreat back to below 0.7500, the pair hits a fresh 3 month high of 0.7543 during the Asian session.

GOLD

The precious metal remains steady above $1780 on Thursday, as worries over rising inflation and supply chain issues boosted the safe-haven appeal. Overall, the momentum remains bullish throughout this week.

Economic Outlook

On the data front, Statistics Canada reported the latest inflation figures on Wednesday. Canada's inflation rate increased to a new 18-year high of 4.4 per cent in September and on a monthly basis, inflation was up 0.2% in September.

Coronavirus update:

Worldwide, more than 241 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 49 million cases and has had more than 715,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: For today, the resistance for Euro remains above 1.1670. On the other side, the immediate support is at 1.1630 and any break will drag the pair to 1.1610 and 1.1580 levels.

The important levels to watch for today: Support- 1.1630 and 1.1610 Resistance- 1.1650 and 1.1670.

GOLD: The precious metal trades above $1780. The near-term resistance is around $1788, any break over targets $1795 and $1800. On the downside, the immediate support is near $1780/ 1774.

The important levels to watch for today: Support- 1772 and 1766 Resistance- 1785 and 1795.

Quote of the day- “The core problem, however, is the need to fit markets into a style of trading rather than finding ways to trade that fit with market behaviour.” – Brett Steenbarger.

Read more- https://gulfbrokers.com/en/daily-market-report-389

 

[syamfx2020]

The hard disk drive maker Seagate Technology (NASDAQ: STX) is scheduled to announce its FY Q1 2022 earnings report today before the market open. Consensus forecast EPS of $2.21 on revenue of $3.1 Billion. Seagate's stock price has also rallied nearly 60% this year.

$STX key technical levels to watch today

Support: $78 and $70

Resistance: $85 and $89

EQUITIES

US stock futures holding the weekly gains despite weaker-than-expected earnings reports from big companies like Snap and Intel. On Thursday, Wall Street ended flat supported by strong US weekly employment claims and existing home sales figures.

OIL

Crude oil prices remained volatile. On Wednesday, Brent oil prices rose to a 3-year high of $85.8 per barrel after the EIA report revealed a bigger than expected drop in crude stockpiles in the US. Gasoline and distillate inventories also decreased more than expected.

CURRENCIES

In the currency market, the EURUSD is trading near the session high following the release of mixed PMI data from the Germany and Eurozone. Meanwhile, the British pound recovered from the early session losses after the release of better-than-expected UK Manufacturing and Services PMI data.

GOLD

The precious metal extends gains on Friday and currently trading very close to the previous week high. Overall, the momentum remained bullish throughout the Asian session.

Economic Outlook

On the data front, UK retail sales fell 0.2 per cent in September from August compared to the market forecasts of a 0.5 per cent expansion, the Office for National Statistics said on Friday. On the other hand, UK Manufacturing PMI unexpectedly increased to 57.7 in October of 2021 from 57.1 in August, beating forecasts of 55.8.

Moving ahead today, the important events to watch:

CANADA – Retail sales: GMT – 12.30

US – Manufacturing PMI: GMT – 13.45

Coronavirus update:

Worldwide, more than 241.9 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46 million cases and has had more than 731,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

USDJPY: The currency pair trades below 114. In the short-term, if the bearish momentum continues the next downside levels to watch 113.60 and 113.20. On the flip side, the immediate resistance is at 114.20 and then 114.50.

The important levels to watch for today: Support- 113.60 and 113.30 Resistance- 114.20 and 114.50

GOLD: The yellow metal hovers above the $1790 area on Friday. Any break above the $1795 will open the doors to $1800 and $1806. On the upper side, $1776 is a crucial support area to watch.

The important levels to watch for today: Support- 1782 and 1776 Resistance- 1800 and 1806

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-390

 

[JimmyRozza]

I can see it coming back to that TL

 

[Surepips]

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The safe-haven currency hovers below 114. If the bearish momentum continues then the next support is near 113.80, below which the slide could further get extended towards 113.40 and 113. On the flip side, 114.70 will remain the key resistance level.

Those bollinger bands are squeezing again too

 

[syamfx2020]

The main attraction for this week is Investors waiting for the US Q3 GDP growth rate, which could trigger volatility in the market. On the other hand, the October ECB meeting this Thursday is one of the other main events of the week. The traders will be carefully monitoring the ECB statement after the latest report revealed the Eurozone inflation expectations hit their highest levels in years.

On the earnings front, Tesla and Netflix reported stronger-than-expected earnings last week while the parent company of Snapchat, Snap failed to impress Wall Street. Moving ahead to this week, it's a big week for tech company earnings, with Facebook, Microsoft, Google parent Alphabet, Apple and Amazon all reporting earnings this week.

GOLD

Gold price failed to close above the $1800 psychological level on Friday following the comments from US Federal Reserve Chairman Jerome Powell about tapering. While considering the last last two weeks upside momentum the metal can surely rebound in the short term if market sentiment stabilises.

Technically, the overall movement has remained bullish. In the coming days, if the bullish momentum continues the next upside levels to watch $1815 then $1830. On the downside, any meaningful pullback now seems to find some support near the $1778 zones, below which the slide could further get extended towards the $1772/65 region.

DOLLAR INDEX

After a strong rally in September, the US dollar struggling to find the upside momentum. The Index ended lower for the second consecutive week while on Friday the greenback slightly rebounded after the FED chairman said – Fed Would Raise Rates if It Sees Serious Risks of Higher Inflation Expectations.

This week, the key resistance is located above the last week high around 94.20, a break above this level will confirm a possible move to 94.50/60. On the downside, if the Index loses the 93.30 handles, then we expect a move toward 92.80.

EURUSD

EURO ended mixed on Friday as investors grew more cautious ahead of a key European Central Bank meeting this week. Beyond the ECB meeting, the focus will be on the Eurozone inflation and GDP readings due on Friday.

For this week, the key support area is around 1.1570. On the upper side, the short-term resistance at 1.1670 any break above this level will open 1.1700 then 1.1740. On the other side, if the price break and close below 1.1570, the next immediate support to watch 1.1530/00.

DOW JONES

Dow Jones closed slightly lower on Friday after reaching the record high. Overall the momentum remains bullish throughout the last week. This week, the index may continue to remain highly volatile amidst the ongoing earnings season.

This week the resistance for Dow Jones is around 36,000, any break over targets 36,200/300. On the flip side, if the Index breaks and close below 35,150 which would open doors towards 35,000/34,950 and below that 34,600 is next.

Read the full report- https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-11

 

[syamfx2020]

This week the main highlights of the economic calendar will be the ECB, BOJ and BOC meeting, US GDP and EU CPI.

Earnings to watch: Apple, Amazon, Facebook, Microsoft, Twitter, AMD, Merck and Boeing

 

[syamfx2020]

“US stock market can move a couple of percent lower before the end of the year but that depends upon the upcoming earnings results and November FOMC decision”

2021 overall a fantastic year for the equity investors and all three major US indexes are still near all-time highs despite September month big selloff.

4 reasons Wall Street holds at a record high

• Central bank stimulus packages
• Strong corporate earnings reports
• Successful vaccine rollouts
• Crude oil prices rally

During the month of September, the stock market showed signs of weakness. The S&P 500 has fallen 4.8%, the Dow Jones dropped 3.4% while the Nasdaq has lost 4.5%. Some of the main factors that contributed to the September sell-off are the China Evergrande Group’s financial troubles and rising inflation. However, we can still expect further stock market correction before the year-end because of several ongoing issues including rising inflation pressures.

FED set to announce Taper in November​

The Federal Reserve’s September meeting minutes suggested that they can begin to taper their asset purchase program as early as mid-November. On the other hand, most of the Fed members expect there are chances the rates lift-off is likely to occur in the next year.

Recently, Fed Governor Christopher Waller said if inflation keeps rising at its current pace in the next few months, policymakers may need to adopt "a more aggressive policy response" next year. While Federal Reserve Chair Jerome Powell said "it would be premature to actually tighten policy by raising rates now with the effect and intent of slowing job growth."

What to know about Stock Market Corrections?

A stock market correction is when the value of securities on the stock market decline by 10% or more when compared to their last peak in price. Corrections can happen to individual stocks and the indexes Nasdaq, Dow Jones, etc.

Is it a good time to invest after the correction?

Of course, the correction in stock prices gives you a good opportunity to invest in high-quality shares at discounted prices, which otherwise are too expensive. But that doesn’t mean that everything you buy will increase in value later.

For example, You would not buy a tesla car if it were double the price, but you will hurry to buy the same car available at a 50% discount.

Conclusion

Markets are expected to remain volatile in the coming weeks ahead of the central bank’s meetings. So, I would suggest the first step is to avoid being emotionally involved in decision-making and make sure your investment portfolio is well-diversified.

Read more- https://gulfbrokers.com/en/can-we-expect-a-further-correction-in-wall-street-before-the-year-end

 

[syamfx2020]

The social media giant Facebook (NASDAQ: FB) stock up almost 2% in after-hours trading following the release of the Q3 earnings announcement. FB reported better-than-expected Q3 earnings while the company missed the revenue forecast, and it came almost exactly the same as the previous period. The company expects fourth-quarter revenue to be in a range of $US31.5 billion to $US34 billion.

• Earnings per share (EPS): $3.22 vs. $3.19 expected
• Revenue: $29.01 billion vs. $29.57 billion expected

Facebook said that it will be adding $50 billion to its stock buyback program. The company also announced that it will change its reporting structure to split a unit called “Facebook Reality Labs.

EQUITIES

The US major indices Dow Jones and S&P 500 closed at record highs on Monday supported the tech stocks and Tesla shares rally. Tesla (NASDAQ: TSLA) shares bounced 13% on Monday which pushed Tesla's total market value to just over $1 trillion.

OIL

Crude oil prices retreat from the fresh year high focus shifts to API inventory data which is set to be released later in the day. The last week API data showed a 3.29-million-barrel increase in US crude inventories.

CURRENCIES

In the currency market, the Euro remained under pressure against the major currency pairs. The British pound slightly recovered from the previous session losses while the currency pair struggled to break above the previous week highs as the markets expect a 60% likelihood that the BOE will hike interest rates during the next week meeting.

GOLD

The precious metal slightly retreats from the early session gains but trades above the $1800 psychological level. Moving ahead, the gold inventors anxiously awaiting the US Q3 GDP results, which could trigger volatility in the market.

Economic Outlook

On the data front, On Monday Germany released the latest IFO survey results. The data showed German IFO Business Climate Index dropped to 97.7 in October as against consensus estimates for a fall to 97.9 from 98.9 recorded in the previous month.

Moving ahead today, the important events to watch:

US – Consumer confidence: GMT – 14.00

US – New homes sales: GMT – 14.00

Coronavirus update:

Worldwide, more than 243 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46 million cases and has had more than 735,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: Technically the overall momentum remains mixed, the immediate support for the Euro stands near the level of 1.1570. On the flip side, the first resistance at 1.1640 any break above this level will open 1.1670 minimum.

The important levels to watch for today: Support- 1.1590 and 1.1570 Resistance- 1.1640 and 1.1670

GOLD: On the daily time frame, the gold is currently supported at $1788, and the resistance is around $1812. On the upper side, the long-term buyers should wait for a daily close above the $1815.

The important levels to watch for today: Support- 1795 and 1788 Resistance- 1810 and 1815

Quote of the day- All intelligent investing is value investing — acquiring more that you are paying for. You must value the business in order to value the stock. – Charlie Munger.

Read the detailed report here- https://gulfbrokers.com/en/daily-market-report-391

 

[syamfx2020]

The US dollar index, which measures the greenback’s value against a basket of six major currencies hits the fresh weekly high of 94.00 on Tuesday. At the time of writing, the greenback slightly retreats from the early session highs.

The daily chart shows that the DXY has been in a bullish trend since Monday. The pair has managed to move from last week’s low at 93.47 to yesterday’s high of 94.00. If the bullish momentum continues the next key resistance levels to watch are 94.20 and 94.50. On the downside, the immediate support at 93.65 followed by 93.45.

EQUITIES

The US stock futures trading unchanged on Wednesday, focus shifts to September US durable goods orders data. On the earnings front, General Motors, eBay, Ford, Spotify and Boeing are amongst those reporting the last quarter financial results today.

OIL

Crude oil prices reversed early gains following the release of API inventory data. The data showed that crude oil in the United States rose by 2.318 million barrels in the week ended October 22, 2021.

CURRENCIES

In the currency market, the Australian dollar surged to a fresh weekly high of 0.7532 after the release of strong inflation data. The Canadian dollar trades flat as investors wait for the October decision by the Bank of Canada (BOC).

GOLD

The precious metal slide to a new session low of $1782 on Tuesday weighed down by a stronger dollar. Meanwhile, on Wednesday during the Asian session, the metal reversed some of its recent losses.

Economic Outlook

On the data front, the US reported strong macro-economic data on Tuesday. The US CB Consumer Confidence increased to 113.8, against the predicted 108.4 and the new Home Sales surged by 14% in September, compared to the market expectation of 1.5%.

Moving ahead today, the important events to watch:

US – Durable goods orders: GMT – 12.30

US – BOC interest rate decision: GMT – 14.00

Coronavirus update:

Worldwide, more than 243 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46 million cases and has had more than 735,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: The currency pair trades below 1.1600. On the downside, the next key support area to watch today is 1.1570. On the flip side, the immediate resistance at 1.1640 followed by 1.1670.

The important levels to watch for today: Support- 1.1570 and 1.1550 Resistance- 1.1620 and 1.1640

GOLD: The yellow metal hovers near the $1790 area. If the bearish momentum continues the next downside levels to watch today are the $1780 and $1772 zone. On the flip side, the immediate resistance at $1800/06.

The important levels to watch for today: Support- 1780 and 1774 Resistance- 1795 and 1800

Quote of the day- It takes 150 years to build an investment bank and only five minutes to convince you to sell me preferred stock in it at a 10% interest rate- Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-392

 

[syamfx2020]

Today we have high impact economic events like US Q3 GDP figures and ECB decision, which will exhibit sharp movements in the global markets.

So due to significant volatility, I recommend to the traders have sufficient margin coverage and be comfortable with your exposure on your account.

Key technical levels to watch:

Gold 1787 and 1815

EURUSD 1.1565 and 1.1670

Dollar 93.40 and 94.20