Daily Market Report by GulfBrokers 2020-2021

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US stock futures and Metals trading steady on Tuesday ahead of the first US presidential election debate between US President Donald Trump and his Democratic rival Joe Biden which is set to start at 9 pm ET (2 am on Wednesday morning in the UK).

EQUITIES

Wall Street ended higher on Monday ahead of the first 2020 presidential election debate. Dow Jones Industrial Average rose 1.51%, the S&P 500 gained 1.61%, and the Nasdaq Composite was up 1.87%.

OIL


Crude oil prices trading higher on Tuesday supported by a weaker dollar and optimism that US lawmakers can still reach a deal on another relief bill.


CURRENCIES

In the currency market, the British pound retreated from the previous session highs after the EU commissioner said the EU would “not be shy” in legally pursuing the UK if the UK does not abandon or rewrites the internal market bill. On Monday, the currency pair surged to fresh weekly highs of 1.2930.

GOLD

The Gold price rebounded from the previous weekly support $1848 boosted by the weaker dollar. At the time writing, the yellow metal hovers near $1885 zone.

Economic Outlook

U.S. House of Representatives Speaker Nancy Pelosi said on Monday that Democratic lawmakers unveiled a new, $2.2 trillion coronavirus relief bill, which she said was a compromise measure that reduces the costs of the economic aid.

Coronavirus update:

The number of people infected with the coronavirus across the world crossed 33.3 million, of which at least 1 million people have died and 23.1 million have recovered, according to data released by the Johns Hopkins University. The US is the worst-hit country with the world’s highest number of cases and deaths at 7,115,338 and 204,758, respectively. India comes in the second place in terms of cases at 6,074,702, while the country’s death toll soared to 95,542. On the other hand, WHO said that some 120 million rapid diagnostic tests for COVID-19 will be made available to low-and middle-income countries at a maximum of $5 per unit.

Technical Outlook

EUR/USD:
The currency pair rebounded from the two-months low after positive comments from European Central Bank president Christine Lagarde. She said that the ECB might consider further stimulus given the increasing number of COVID infections.

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The important levels to watch for today: Support- 1.1660 and 1.1620 Resistance- 1.1720 and 1.1770.



GOLD: The yellow metal trades steady above $1880 during the European session, supported by $1860 and $1848.

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The important levels to watch for today: Support- 1860 and 1848 Resistance- 1896 and 1905.


Quote of the day: Learn to take losses. The most important thing in making money is not letting your losses get out of hand- Marty Schwartz.

Read more- https://gulfbrokers.com/en/daily-market-report-175
 
This week started with strong economic numbers, both China manufacturing PMI and US consumer confidence reported strong numbers. Moving ahead there are other few key events to watch

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China's official manufacturing PMI released on Wednesday; the PMI rose to 51.5 in September from 51 the previous month. Meanwhile, the Caixin manufacturing PMI edged down from 53.1 last month to 53.0 in September.

EQUITIES

Asian stocks trading mixed on Wednesday despite better-than-expected China's manufacturing data. On the other hand, European shares extend losses after mixed eurozone and German economic data.

OIL

Crude oil prices slipped lower amid mounting concerns over fuel demand recovery as the number of coronavirus infections continues to rise worldwide.

CURRENCIES

In the currency market, the British pound slides to near 1.2800 after the latest data showed the British economy contracted by 19.8% for the second quarter.

GOLD

The Gold price trading slightly lower on Wednesday after the yellow metal hit a fresh weekly high of $1997 during the previous session.

Economic Outlook

On the data front, Japan industrial production rose 1.7% in August over the previous month, while retail sales increased 4.6% over the same period. On the other hand, German retail sales jumped by 3.1% on the month in real terms after an upwardly revised drop of 0.2% in July, data from the Federal Statistics Office showed.

On Tuesday, the Vice Chairman of the Federal Reserve, Richard Clarida, said that the Fed will not increase the interest rates until the labor market recovers completely. He also said that rates will not be raised until the inflation target of 2% has been met and the target has been surpassed for some time.

Moving ahead today, the important events to watch:

US – ADP employment report: GMT – 12.15

US – Gross Domestic Product: GMT – 12.30

US -Crude oil inventories: GMT – 14.30

Coronavirus update:

The number of people infected with the coronavirus across the world crossed 33.6 million, of which at least 1 million people have died and 23.4 million have recovered, according to data released by the Johns Hopkins University. The UK reported 7,143 cases of coronavirus in the last 24 hours - the biggest rise since the pandemic began. It also recorded 71 coronavirus-related deaths, the highest daily leap since July 1.

Technical Outlook

EUR/USD:
The currency pair slightly retreated from the highs, at the time of writing the pair hovers near the 1.1700 zones.

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The important levels to watch for today: Support- 1.1690 and 1.1660 Resistance- 1.1740 and 1.1780.



GOLD: The yellow metal trades near $1880 ahead of US ADP employment and GDP data. Overall, the momentum remained bearish throughout the European session.

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The important levels to watch for today: Support- 1875 and 1860 Resistance- 1896 and 1910.

Quote of the day: Wide diversification is only required when investors do not understand what they are doing – Warrant Buffet.


Read more- https://gulfbrokers.com/en/daily-market-report-176
 
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The British pound plunged more than 100 pips during the European session after the EU and the UK failed to close differences in the latest round of trade talks. On the other hand, UK Manufacturing PMI reported 54.1 for the last month, slightly lower than expected.

EQUITIES

Wall Street ended higher on Wednesday on hopes of US stimulus and positive US economic data. "US Treasury Secretary Steve Mnuchin said that stimulus plan) talks are progressing very well," Meanwhile, the Chinese markets closed on Thursday for a national holiday. Trading on the Tokyo Stock Exchange was suspended Thursday because of a problem in the system for relaying market information. The Exchange said that all trading was stopped because of the problem and will not resume for the rest of the day.

OIL

Crude oil prices rebounded from the previous session lows after the latest EIA inventory data showed the crude oil stockpiles in the US drop by 1.980 million barrels in the week ended September 25th.

CURRENCIES


In the currency market, the EUR/USD slightly retreated from the daily tops after mixed economic data from Eurozone and Germany.

GOLD

The Gold price trading below the $1900 psychological level on Thursday boosted by the weaker dollar.

Economic Outlook

On the data front, the Eurozone Manufacturing PMI jumped up to 53.7 in September (Aug - 51.7). While Eurozone unemployment rate increased to 8.1% in August 2020 from an upwardly revised 8% in the previous month.

On Wednesday, the US ADP employment change report indicated an increase of 749K jobs in September after rising by 481K in the previous period. Analysts had expected an increase of 650K.

Moving ahead today, the important events to watch:

US – Initial jobless claims: GMT – 12.30

US – Manufacturing PMI: GMT – 13.45

US – ISM manufacturing PMI: GMT – 14.00

Coronavirus update:

The number of people infected with the coronavirus across the world crossed 33.9 million, of which at least 1 million people have died and 23.6 million have recovered, according to data released by the Johns Hopkins University. India reports 86,821 new cases over the last 24 hours, up from 80,472 the previous day, pushing the country total over 6.3 million. Canada reported a total of 1,796 new cases of the novel coronavirus Wednesday, the country has now seen a total of 158,592 COVID-19 infections to date.

Technical Outlook

Dollar Index:
The Index trading near the weakly lows ahead of US employment data. Overall, the momentum remained bearish throughout this week.

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The important levels to watch for today: Support- 93.60 and 93.30 Resistance- 94 and 94.50.

GOLD: The yellow metal started the month on a positive note. At the time writing, the gold price trades below $1900. Any break above $1900 the next upside levels to watch $1910 and $1920.

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The important levels to watch for today: Support- 1890 and 1880 Resistance- 1905 and 1910.

Quote of the day: Silence is golden, and gold is up these days so silence is a solid investment- Jarod Kintz.


Read more- https://gulfbrokers.com/en/daily-market-report-177
 
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Nikola (NASDAQ: NKLA) shares closed 14% higher on Wednesday after the latest reports said General Motors (NYSE: GM) might take a larger stake in Nikola than originally planned. The deal was supposed to be finalized by September 30, but both companies confirmed that discussions are still ongoing. Nikola stock is up 85% in 2020, while it has dropped more than 50% in September.

"Our transaction with Nikola has not closed," a GM spokesperson said. "We are continuing our discussions with Nikola and will provide further updates when appropriate or required."

The alliance, announced Sept. 8, included plans for GM to receive an 11% stake in Nikola then worth about $2 billion and payments up to $700 million for building the startup's Badger pickup. In return, GM agreed to supply Nikola with electric batteries, a chassis architecture, and a factory to build the Badger pickup.

On September 21, the NKLA shares dropped more than 19% after founder Trevor Milton has resigned as executive chairman over fraud allegations.
 
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The US nonfarm payrolls report is one of the most important data scheduled for release later today, the NFP report due at 12:30 GMT today. NFP measures employment levels in the United States that does not include farm workers, private household employees, or non-profits. The market is expecting 850K new jobs, down on the previous month's 1,371K which takes the unemployment rate to an expected 8.2%. On Wednesday, the ADP employment increased by 749k jobs in September, according to the ADP National Employment Report.

EQUITIES

US futures and global stocks fell on Friday after US President Donald Trump and first lady Melania Trump both tested positive for Covid-19. "We will get through this TOGETHER!" Trump tweeted. Asian shares also trading lower on Friday due to thin holiday trading, with markets in South Korea, Shanghai and Hong Kong closed.

OIL

Crude oil prices dropped to fresh weekly low on Friday, weighed down by concerns about the outlook for energy demand.

CURRENCIES

In the currency market, the British pound continues its volatile trading as Brexit negotiations continue. At the time of writing, the currency pair rebounded from the early session losses and trades above 1.2930. Meanwhile, as per the recent update, UK Prime Minister Boris Johnson will hold talks with the European Commission President Ursula von der Leyen on Saturday.

GOLD

Gold price trading strong ahead of US jobs report. The recent bullish move supported by the weaker dollar and the number of coronavirus infections continues to rise worldwide.

Economic Outlook

On the data front, the US the ISM Manufacturing PMI in September fell from 56 to 55.4 points against the forecast of growth to 56.3 points. While Personal Income from the United States declined to -2.7%, against the expected -2.0%.

US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued their talks on a new coronavirus relief bill on Thursday. Nancy Pelosi told reporters she did not expect an imminent agreement with the Trump administration. It remains unclear if policymakers can get something done before the Nov. 3 election.

Moving ahead today, the important events to watch:

US – Non-farm payrolls: GMT – 12.30

US – unemployment rate: GMT – 12.30

Coronavirus update:

Globally, the coronavirus has infected more than 3.42 crore people and killed 10,21,709, according to Johns Hopkins University. More than 2.35 crore people have recovered worldwide so far.

Technical Outlook

EUR/USD:
The currency pair trading steady above 1.1700 ahead of NFP data, during the Asian session the pair hit a fresh daily low of 1.1695.

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The important levels to watch for today: Support- 1.1690 and 1.1660 Resistance- 1.1740 and 1.1780.

GOLD: The yellow metal slightly retreated from the daily tops. At the time of writing, the gold price trades below $1910.

audusd


The important levels to watch for today: Support- 1900 and 1890 Resistance- 1917 and 1926.

Quote of the day: Your trading needs to boil down to rules, money management, and that is it – Michael Covel.


Read more- https://gulfbrokers.com/en/daily-market-report-178
 
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The home goods retailer Bed Bath & Beyond (NASDAQ: BBBY) shares soared 30% on Thursday after the company reported better-than-expected second-quarter financial results. The e-commerce sales grew 89% in the last quarter as the coronavirus pandemic sends demand higher and driven by online sales growth and higher traffic in stores.

  • Earnings per share (EPS) $0.50 vs. -$0.23 expected
  • Revenue $2.69 billion vs. $2.60 billion expected

"During this unprecedented time when our homes have become the center of our lives, we are well placed as customers spend more in their home and lifestyle," CEO Mark Tritton said. “Our growth strategy is unlocking improved financial performance, and the marked improvement in our second-quarter financial results reflects the potential of our digital-first” he added.

The company expected to host a virtual investor meeting on Oct. 28, where it will share more about its turnaround plans and financial outlook.

Read more- https://gulfbrokers.com/en/why-bbby-stock-jumped-30-on-thursday
 
PepsiCo(NASDAQ: PEP) shares closed almost 2% higher on Thursday after the company Q3 financail results exceeded Wall Street estimates.

EPS $1.66 $1.49 expected
Revenue $18.09B $17.23B expected

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