Daily Market Report by GulfBrokers 2020-2021

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US dollar retreated back to below the psychological 90 level on Wednesday and the Index struggling to find the upside momentum. During the last week, the greenback recovered from nearly three-year low and closed higher. While considering the recent downside move the USD may find again strong buyers below the 90 area. Moving to the North American session, the investors should keep an eye on the new updates about additional U.S. fiscal stimulus and US inflation data.

EQUITIES

Wall Street closed higher on Tuesday supported by the recent victory of Democrats in the Georgia election have raised the hopes for a massive fiscal stimulus package. Meanwhile, the Chinese stocks trading mixed after China reported the biggest daily jump in coronavirus cases for more than five months.

OIL

Crude oil prices surged to near the 11-month high on Wednesday, as expectations of a coronavirus vaccine fuelled the hopes of a faster-than-expected economic recovery. On the other hand, the API reported a larger than expected drop in US oil inventories.

CURRENCIES

In the currency market, the British pound rallied following the comments from the Bank of England’s governor Andrew Bailey. He said the negative interest rates would be a simple way to boost growth. Meanwhile, Bailey warned that the UK was facing its darkest hour amid surging covid cases and tighter lockdown restrictions.

GOLD

The yellow metal closed slightly higher on Tuesday boosted by the optimism about another big fiscal stimulus and the weaker dollar.

Economic Outlook

On the data front, the US JOLTS Job Openings for November came it at 6.53M, which was up compared to the predicted 6.42M.

On Tuesday, the president of the Boston Federal Reserve Bank, Eric Rosengren, said on Tuesday, “The pandemic is likely to continue to be a problem for public health and the economy until widespread vaccinations take hold,” “Low-interest rates should continue to support the housing market and the labor market could see strong gains over the next two years”, he added.

Coronavirus update:

Worldwide, more than 91 million people have been confirmed infected and more than 1.9 million have died. The U.S. has the highest death count of any country in the world, at 376,295, according to Johns Hopkins University. In the UK, the latest figures showed that a further 1,243 people had died within 28 days of testing positive for Covid-19 as of Tuesday, which brings the total to 81,960.

Technical Outlook

EUR/USD:
The currency pair slightly retreated from the previous session highs ahead of Eurozone Industrial production data. On the downside, 1.2170 and 1.2130 will be the crucial levels to watch.

eurusd


The important levels to watch for today: Support- 1.2170 and 1.2130 Resistance- 1.2220 and 1.2250.



GOLD: The precious metal trading unchanged on Wednesday. The important levels to watch today $1865 and $1838.

gold neww


The important levels to watch for today: Support- 1846 and 1832 Resistance- 1865 and 1870.

Quote of the day: Understanding how to be a good investor makes you a better business manager and vice versa – Charlie Munger.

Read more- https://gulfbrokers.com/en/daily-market-report-237
 
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On Monday, the Chinese electric automaker NIO Inc – ADR (NYSE: NIO) shares rose 8% higher and hit new all-time-high following the company launched mass production of new electric car on Saturday. NIO has unveiled its latest electric sedan model, and the car could go as far as 1,000km on a single charge, using a 150-kWh battery.

NIO also announced a collaboration with Nvidia Corp, the latest electric vehicle ET7 will use NVIDIA Drive Orin SoC for AI-assisted driving. “The collaboration between NIO and NVIDIA will accelerate the development of autonomous driving on intelligent vehicles” William Li, NIO CEO said.

The new electric car can accelerate from zero to 100 kmph in just 3.9 seconds and features a 150-kW battery for 600 miles of battery range. The ET7 integrates an advanced sensor package — with 11 cameras and lidar sensors. The new model is now available for pre-order on the NIO app, and the deliveries are estimated to start in Q1 2022.

HASH


The NIO stock rallied more than 1,700% in 2020. On Tuesday, the stock closed slightly lower on Tuesday after the company's plans to sell $1.3 billion of convertible senior notes. “The company plans to use the net proceeds from the notes offering mainly for general corporate purposes and to further strengthen its cash and balance sheet positions,” Nio said.

Read more- https://gulfbrokers.com/en/nio-the-chinese-version-of-tesla-soaring-to-new-heights
 
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European stocks trading steady on Thursday ahead of European Central Bank Policy Meeting Minutes. On Wednesday, European Central Bank council member Francois Villeroy de Galhau said the ECB will keep an easy stance for as long as needed.

EQUITIES

US stock futures trading higher on Thursday as investors awaited US President-elect Joe Biden’s plans for further stimulus measures on Thursday. The package is expected to include $2,000 in stimulus checks. Meanwhile, Asian shares traded higher supported by better-than-expected Chinese economic data.

OIL

Crude oil prices trading lower on Thursday following a larger-than-expected decline in US crude inventories. The EIA data showed US crude inventories fell 3.25 million barrels to 482.21 million barrels in the week ended January 8th.

CURRENCIES

In the currency market, the Australian and New Zealand dollar trading slightly higher lifted by upbeat Chinese export data. While the EURO and British pound trading unchanged on Thursday.

GOLD

The yellow metal trading below $1850 ahead of U.S. Federal Reserve Chairman Jerome Powell speech. Overall, the momentum remained bearish throughout this week.

Economic Outlook

On the data front, Chinese exports grew more than expected in December. The exports rose 18.1% in December from a year earlier, slowing from a 21.1% jump in November but beating expectations for a 15% rise

On Wednesday, the US labour department released the latest inflation data. The U.S. CPI increased 0.4% in December alone, taking the annualised rate of consumer price growth up to 1.4%

Moving ahead today, the important events to watch:

Eurozone – ECB meeting minutes: GMT – 12.30

US – Jobless claims: GMT – 13.30

US – U.S. FED Chairman Jerome Powell speech: GMT – 16.30

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 91.9 million. The United States has reported 22.9 million confirmed cases and has had more than 382,000 deaths from COVID-19, the highest totals in the world. India and Brazil have the second and third highest case tallies, recording some 10.4 and 8 million cases, respectively. In Spain, the total number of infections increased to 2.18 million and the number of fatalities to 52,878 since the start of the pandemic.

Technical Outlook

Dollar Index:
The US dollar index trading steady above 90 during the European session. If the bullish momentum continues the next upside to watch 90.50/70.

DXY


The important levels to watch for today: Support- 89.90 and 89.60 Resistance- 89.50 and 89.75.

GOLD: The precious metal struggling to find the upside momentum. At the time of writing, the gold price trading below $1940.

gold neww


The important levels to watch for today: Support- 1832 and 1826 Resistance- 1850 and 1865.

Quote of the day: Profits can be made safely only when the opportunity is available and not just because they happen to be desired or needed- Gerald M Loeb.

Read more- https://gulfbrokers.com/en/daily-market-report-238
 
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The banking giants JPMorgan Chase (NYSE: JPM), Citigroup (NYSE: C) and Wells Fargo (NYSE: WFC) will release its fourth-quarter results on Friday before the bell. All three banking stocks closed higher on Thursday ahead of the earnings announcement.


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JPMorgan shares climbed to a fresh all-time high of $142 this week and on Thursday, the stock closed at $141.17.

Among the other two big banks, the investors will closely monitor the financial results of Wells Fargo because WFC was the one bank whose results disappointed Wall Street on the first day of Q3 earnings season. Meanwhile, both JPMorgan and Citi reported better than expected trading results in Q3, so investors are looking to see if that continued in Q4.

Other banks including Goldman Sachs Group Inc (NYSE: GS) and Bank of America Corp (NYSE: BAC) are both scheduled to report earnings on Jan. 19. Morgan Stanley (NYSE: MS) plans to announce its fourth-quarter financial results on Wednesday, Jan. 20.

Fourth-quarter earnings season kicks off on Thursday with better -than – expected results from the investment firm BlackRock (NYSE: BLK). "We begin 2021 well-positioned and intend to keep investing in our business to drive long-term growth and to lead the evolution of the asset management industry," BlackRock's CEO, Larry Fink, said. While BlackRock's shares closed 4% lower after the stock hit a record high on Wednesday.

Read more- https://gulfbrokers.com/en/are-you-ready-for-big-banks-q4-earnings
 
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"A crisis of deep human suffering is in plain sight, and there's no time to waste," The US president-elect Joe Biden said.

US President-elect Joe Biden unveiled his $1.9 trillion stimulus plan Thursday night. He also budgets $50 billion for Covid testing and $20 billion to speed coronavirus vaccine rollouts.

EQUITIES

US indices retreated from the highs after hitting fresh records on Thursday as US President-elect Biden $1.9 trillion stimulus plan which did not exactly surprised markets. The global markets were expecting that the stimulus package could be as big as $2 trillion. Moving to North American session, the investors awaited the big bank's earnings, JPMorgan Chase (NYSE: JPM), Citigroup (NYSE: C) and Wells Fargo (NYSE: WFC) will release its fourth-quarter results on Friday before the bell.

OIL

Crude oil prices slipped after the WHO said that the second year of the COVID-19 pandemic may be tougher than the first as the new virus is spreading.

CURRENCIES

In the currency market, the British Pound trading lower against the Dollar and Euro after mixed economic data and negative comments from UK finance minister Rishi Sunak.

GOLD

The yellow metal traded higher on Thursday North American session following the comments from the Fed Chair Jerome Powell but closed slightly lower after the metal failed to break above $1856 resistance.

Economic Outlook

On the data front, UK GDP fell 2.6% November while the figure was better than the expected decline of 5.7%. “Its clear things will get harder before they get better and today’s figures highlight the scale of the challenge we face,” UK finance minister Rishi Sunak said.

On Thursday, the Federal Reserve Chair Jerome Powell said the interest rates in the US would not rise anytime soon and the economy could return to pre-pandemic levels sooner than expected due to unprecedented fiscal stimulus and the Fed's aggressive intervention.

Moving ahead today, the important events to watch:

Eurozone – Trade Balance: GMT – 10.00

US – Retail sales: GMT – 13.30

US – Industrial Production: GMT – 14.15

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 92.6 million. The United States has reported 23.1 million confirmed cases and has had more than 386,000 deaths from COVID-19, the highest totals in the world. The UK's Department of Health and Social Care confirmed 48,682 new positive tests for COVID-19 on Thursday, taking the country's case total past 3.26 million.

Technical Outlook

Dollar Index:
The US Dollar Index trading steady above 90.30 on Friday after once again the Index found support nearby 90 psychological areas.

DXY


The important levels to watch for today: Support- 90 and 89.60 Resistance- 90.45 and 90.80.

GOLD: The precious metal trading in a range between $1830 and 1862 from last two days after hitting the fresh monthly low of $1817 on Monday.

gold neww


The important levels to watch for today: Support- 1846 and 1836 Resistance- 1856 and 1865.

Quote of the day: A successful trader studies human nature and does the opposite of what the general public does – William Delbert Gann.

Read more- https://gulfbrokers.com/en/daily-market-report-239
 
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