DAILY MARKET REPORT - Wed, Feb 17, 2021

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UK and European shares slip lower on Wednesday after mixed corporate earnings results and amid growing concerns over rising bond yields in the US.

EQUITIES

Wall Street expected to open lower on Wednesday as the investors awaiting approval of the USD 1.9 trillion economic support package previously proposed by Joe Biden.

On the earnings front, Shopify (NYSE: SHOP) and Wix.com (NASDAQ: WIX) reporting earnings today before the bell while Twilio (NYSE: TWLO) is scheduled to report results after the market close.

OIL


Crude oil price recovered from the previous session lows supported by the progress on coronavirus vaccine rollouts and the slowing pace of infections in Europe and the US.

CURRENCIES

In the currency market, the US Dollar Index remained steady above 90.70 ahead of US retail sales data. While the British pound slightly trading weaker on Wednesday, during the previous session the pair has hit its highest level since April 2018.

GOLD

The safe-haven metal extends lower after the US dollar rebounded from the weekly session lows. The recent Dollar rally supported by the sharp upsurge witnessed in the US Treasury bond yields.

Economic Outlook

On the data front, the UK Consumer Prices Index crept increased by 0.7% in January from 0.6% in December – exceeding inflation forecasts of 0.5% for the month.

On Tuesday, the German economic data showed the ZEW Economic Sentiment in February increased from 58.3 to 69.6 points, while analysts expected a further decline to 57 points. Meanwhile, the last quarter Eurozone GDP came in at -0.6%, against the expectations of -0.7%.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 13.30

US – FOMC meeting minutes: GMT – 19.00

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 109.3 million. The United States has confirmed over 27.7 million cases and has had more than 487,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair trading lower on Wednesday. At the time of writing, the pair hovers near the short-term support area 1.2060.

eurusd


The important levels to watch for today: Support- 1.2050 and 1.2000 Resistance- 1.2100 and 1.2130.

GOLD: The yellow metal touched a fresh weekly low of $1784 on Wednesday. If the bearish momentum continues the next downside levels to watch $1770/65.

gold neww


The important levels to watch for today: Support- 1774 and 1770 Resistance- 1796 and 1800.

Quote of the day: I made my first investment at age eleven. I was wasting my life up until then- Warren buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-262
 
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