Daily Market Report by GulfBrokers 2020-2021

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The Tech giant IBM (NYSE: IBM) reported better than expected Q2 earnings on Monday. While the company revenue was down 5.4% compared to the same quarter last year. $IBM stock climbed 6% in after-hours trading.

EPS $2.18 vs $2.07 expected
Revenue $18.12B vs $17.72B expected

“Our clients see the value of IBM’s hybrid cloud platform, based on open technologies, at a time of unprecedented business disruption," said Arvind Krishna, IBM CEO. “It’s likely that we see that the economic recovery is looking to be longer and more protracted than we might have hoped for back in March,” he added.
 
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The healthcare sector companies delivered strong second-quarter earnings last week. Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT) posted second-quarter results on Thursday that surpassed the consensus forecast on Wall Street. Abbott shares have increased 11% since the beginning of the year while JNJ shares have declined 2.4% this year so far. This week the main health care earnings to watch Biogen, Inc. (NASDAQ: BIIB). The company will report second-quarter 2020 results on Jul 22, before market open.

EQUITIES

European stocks trading higher on Tuesday after EU leaders reached an agreement on a EUR 750 billion common recovery fund after almost five days of intense negotiations. On Monday, Wall Street ended higher boosted by early positive trial results from US drugmaker Pfizer and Oxford-AstraZeneca, the Nasdaq surged 2.51% and the S&P 500 increased by 0.85%.

OIL

Crude oil price trading near the session high supported by positive news regarding the COVID-19 vaccine. The OPEC+ virtual technical meeting was held last week and resulted in a decision to move forward with the planned easing of the current supply cuts in August.

CURRENCIES

The British Pound surged to a fresh monthly high of 1.2715 on Tuesday supported by the weaker dollar and positive comments from the BOE’s Chief Economist Andy Haldane. He said that the UK economy hit the floor in April suggested further recoveries.

GOLD

Gold price trading above the 9-year high of $1820. The yellow metal price climbed higher due to rising Coronavirus infections globally and by a weaker dollar.

Economic Outlook

On Tuesday, the European Union leaders reached an agreement on a EUR 750 billion recovery fund after five days of negotiations. French President Macron said the deal was “truly historic”.

On the data front, UK Public Sector Net Borrowing rose by over £34 billion in June, more than expected. During the Asian session, Reserve Bank of Australia released July policy meeting minutes. The minutes showed that there was no need to adjust the package of monetary policy measures.

On the earnings calendar, The Tech giant IBM (NYSE: IBM) reported better than expected Q2 earnings on Monday. While the company revenue was down 5.4% compared to the same quarter last year. $IBM stock climbed 6% in after-hours trading.

The important earnings to watch today: Coca-Cola Co (NYSE: KO) and Snap Inc (NYSE: SNAP)

Coronavirus update:

The number of people infected with the coronavirus across the world rose surpassed 14.7 million, of which at least 609 thousand people have died, according to Johns Hopkins. The US accounted for the world's highest number of infections at 3.83 million. In India, there have been 1,155,338 confirmed cases and 28,082 deaths, with 724,578 people recovered from the virus. On Monday, Another Covid vaccine from Oxford University and AstraZeneca also showed a positive immune response in an early trial.

Technical Outlook

XAU/USD:
The yellow metal trading above $1820 after breaking the previous resistance of $1818 during the previous session.

audusd


The important levels to watch for today: Support- 1818 and 1812 Resistance- 1826 and 1835.

EUR/USD: This currency pair trading below 1.1440 during the European session after hitting the fresh 4- month high of 1.1468.

cruse


The important levels to watch for today: Support- 1.1420 and 1.1370 Resistance- 1.1495 and 1.1530.

Quote of the day: It isn’t as important to buy as cheap as possible as it is to buy at the right time – Jesse Livermore.


Read more- https://gulfbrokers.com/en/daily-market-report-129
 
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The world’s most valuable automaker Tesla (TSLA) is set to announce its second-quarter 2020 financial results today, Wednesday, July 22 after the markets close. $TSLA shares started this week on a positive note, the stock climbed from $1,500 to $1,643 more than 9% on Monday. While on Tuesday the shares closed 5% lower after investment bank JMP Securities is out with a rating downgrade for Tesla. Based on the company's closing price yesterday, Tesla has a $290 billion market capitalization.

Wall Street’s revenue consensus for Tesla during the first quarter is $5.146 billion and the earnings per share, the Wall Street consensus is a loss of $0.14 per share for the quarter. For the quarter ended in March, Tesla reported that revenue increased by 32% year-over-year to $5.9bn. If Tesla reports another quarterly profit today, as is widely expected, the company will have cleared the last big hurdle for entry into the S&P 500.

Vehicle deliveries will remain crucial for the electric vehicle maker this year. The company already released its Q2 2020 numbers confirming that it delivered 90,650 cars and produced ‘over 82,000 vehicles’ between April and June.

Currently, Tesla’s share price is up 276% so far this year and the shares have continued to rise in value nearly every day for the past few months. Tesla officially surpassed Toyota to become the most valuable car company in the world in June and the CEO, Elon Musk’s wealth officially climbed to 9th place on the world's richest list.

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Today the investors and traders will closely monitor the electric carmaker’s Q2 earnings and its global expansion plans. On Tuesday, the Tesla stock closed below the psychological level of $1600. Considering Tesla is a volatile stock and if the company reports strong results today there are chances the stock can rally to previous record high price of $1,794 last achieved on July 13th, 2020. On the other hand, if the price break below $1550, the next level to watch $1500 followed by $1440.

Read more- https://gulfbrokers.com/en/tesla-earnings-today-who-will-win-the-bulls-or-the-bears
 
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EUR/USD climbed to a fresh year high of 1.1545 on Tuesday. The currency gained after the EU leaders reached a deal on a coronavirus recovery package worth €750 billion and the pair also supported by the weaker dollar. The dollar index dropped to its lowest since early March on Wednesday during the Asian session.

EQUITIES

Global stocks trading mixed on Wednesday and US stock futures trading near the session low on doubts over the timing of a fresh US stimulus program and the other reason, Beijing said earlier today that the Trump administration had abruptly told it to close its Houston consulate.

OIL

Crude oil price dropped to the session low on Wednesday after the American Petroleum Institute (API) reported an unexpected increase in inventories of 7.544 million barrels for the week compared with expectations for a draw of 2.1 million.

CURRENCIES

The commodities currencies the Australian dollar and New Zealand dollar surged to the fresh session high on Wednesday. During the European session, both the currency pairs retreated from the highs after negative comments from China’s foreign ministry.

GOLD

The gold price rose to multi-year high on Wednesday supported by weak USD. The precious metal price also boosted by the comments from President Donald Trump, he warned that the coronavirus pandemic would get worse before it got better in the US.

Economic Outlook

On the data front, New Zealand's Global Dairy Trade Price Index declined by 0.7% after rising by 8.3% last month. Analysts had expected growth of 3.9%. Meanwhile, Australian preliminary retail sales rose by 2.4% in June, lower than in May but up 8.2% on the year.

On the earnings calendar, the beverage and snack maker Coca - Cola (NYSE: KO) reported better-than-expected Q2 profit. While the global sales dropped 28% in Q2. $KO surged 3% in after-hours trading.

The important earnings to watch today: Tesla (NASDAQ: TSLA) and Microsoft (NASDAQ: MSFT)

Coronavirus update:

The number of people infected with the coronavirus across the world hit 14.95 million, of which at least 616 thousand people have died, according to Johns Hopkins. The United States has the highest number of confirmed cases at 3.97 million, followed by Brazil with 2.17 million. Russia reported 5,842 new cases of coronavirus on Tuesday, pushing its total infection tally to 7,83,328, the fourth-highest number of cases in the world. India reported 37,148 cases and 587 deaths in the last 24 hours, taking the total number of coronavirus infections to 11,55,191.

Technical Outlook

XAU/USD:
The yellow metal surged above $1860 on Wednesday and at the time writing the price hovers around $1850.

cruse


The important levels to watch for today: Support- 1843 and 1830 Resistance- 1855 and 1865.



EUR/USD: This currency pair dropped back to below 1.1510 on Wednesday after the pair climbed to 1.1545 during the early session.

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The important levels to watch for today: Support- 1.15 and 1.1470 Resistance- 1.1540 and 1.1570.

Quote of the day: Do not save what is left after spending but spend what is left after saving – Warren Buffet.


Read more- https://gulfbrokers.com/en/daily-market-report-130
 
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The tech giant Microsoft released fourth-quarter earnings on Wednesday after the market close. The company Q4 financial results exceeded expectations boosted by its outperformance in its commercial cloud business.
  • Earnings per share (EPS) $1.46 vs. $1.34 expected
  • Revenue $38.03 billion vs. $36.50 billion expected
“The last five months have made it clear that tech intensity is the key to business resilience. Organizations that build their own digital capability will recover faster and emerge from this crisis stronger,” chief executive Satya Nadella said.

EQUITIES

Global stocks surged higher on Thursday supported by latest earnings results and new stimulus measures. Pfizer shares boosted after the U.S. government agreed to pay the drugmaker and partner BioNTech to secure doses of their experimental Covid-19 vaccine.

OIL

Crude oil price trading higher on Thursday ignored down beat EIA inventory data. The Energy Information Administration (EIA) showed the crude inventories increased by 4.9 million barrels in the week to July 17, while analysts expected a decline of 2.1 million barrels.

CURRENCIES

The EUR/USD continues the upside move and the currency pair touched its strongest level since October 2018. Meantime, the Australian dollar and Chinese yuan trading slower as tensions heightened between the United States and China, after the U.S gave China 72 hours to close its consulate in Houston amid accusations of spying.

GOLD

Gold price trading near the highest levels since September 2011 supported by the weaker Dollar and increased tensions between the U.S and Beijing.

Economic Outlook

On the data front, the US existing home sales jumped 20.7% from the previous month to a seasonally adjusted annual rate of 4.72 million units in June 2020 from a near-decade low of 3.91 million in May, but below market expectations of 4.78 million.

On the earnings calendar, Tesla (NASDAQ: TSLA) shares climbed more than 4% in the after-hours trading after the company’s financial Q2 results exceeded Wall Street estimates. Its market cap is now US$295.337B. The electric vehicle maker reported a net income of $104 million and a positive free cash flow of $418 million.

The important earnings to watch today: Twitter (NYSE: TWTR) and American Airlines (NASDAQ: AAL)

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 15.2 million, of which at least 623 thousand people have died, according to Johns Hopkins. The US is the worst-affected country with 3,915,780 total cases, including 142,312 deaths — more than 460,000 new cases were recorded in one week.

Technical Outlook

XAU/USD:
The yellow metal trading steady above $1880 on Thursday, the next important resistance to watch $1900/10.

audusd


The important levels to watch for today: Support- 1865 and 1850 Resistance- 1880 and 1895.

Dollar Index: The Dollar index is near the crucial support level and at the time of writing the currency pair trading below $95.

cruse


The important levels to watch for today: Support- 94.60 and 94.00 Resistance- 95.70 and 96.40.


Quote of the day: The highest profits are made in trades that show a profit right from the start – Jesse Livermore.


Read more- https://gulfbrokers.com/en/daily-market-report-131
 
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UK retail sales recovered to the near pre-pandemic levels; the index records the volume of all goods sold by retailers monthly. The National Statistical Office (ONS) reported today the UK retail sales for the month of June climbed 13.9%, bigger than economists' forecasts of an 8% rise. Growth in sales, excluding auto fuel, improved to 13.5% in June from 10.6% a month ago.

EQUITIES

Global stocks trading lower on Friday following a sell-off in US equities overnight higher as US jobless claim edged up and the other main reasons are tensions between the US and China and the mounting number of COVID-19 cases.

OIL

Crude oil price edged lower as investors fear the oversupply concerns continued after data from both the API and EIA showed US crude inventories rose unexpectedly last week.

CURRENCIES

The Australian dollar also retreated from a 15-month peak against the dollar to 0.7070, meanwhile, the New Zealand dollar dropped to 0.6630. The British Pound trading mixed after positive economic data, at the time of writing the currency pair trading near 1.2720.

GOLD

Gold prices surged to near the psychological level of $1900 as concerns about worsening US-China tensions added to the economic uncertainty and the lower interest rates have supported the upward trend.

Economic Outlook

On the data front, Germany Services PMI climbed to 56.7 in July 2020 from 47.3 in the previous month and well above market expectations of 50.5, a preliminary estimate showed. UK Services PMI jumped to 56.6 in July 2020 from the previous month's 47.1 and well above market expectations of 51.5.

On Thursday the US released the Initial Weekly Jobless Claims numbers, which unexpectedly increased to 1.1416 million as compared to the previous week’s 1.307 million. While continuing jobless claims decreased to 16.20 million in the week ended July 11th, below market forecasts of 17.07 million.

The important earnings to watch today: Honeywell (NYSE: HON) and American Express (NYSE: AXP).

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 15 million, of which at least 633,449 people have died, according to Johns Hopkins. Currently, more than 4,169,991 U.S. residents have tested positive for the virus, and 143,333 have died. In India, there have been 1,288,108 confirmed cases and 30,601 deaths, with 817,209 people recovered from the virus.

Technical Outlook

XAU/USD:
Gold prices are now up more than 25% from March’s lows, and the next important resistance to watch $1,920 an ounce hit in September of 2011.

audusd


The important levels to watch for today: Support- 1880 and 1873 Resistance- 1900 and 1910.

EUR/USD: The pair slightly retreated from the fresh session high of 1.1625, at the time writing the currency pair trading below 1.1600.

cruse


The important levels to watch for today: Support- 1.1560 and 1.1510 Resistance- 1.1630 and 1.1670.

Quote of the day: The fundamental law of investing is the uncertainty of the future – Peter Bernstein.

Read more -https://gulfbrokers.com/en/daily-market-report-132
 
The pair slightly retreated from a 21-month peak of 1.1625 and now hovers near 1.16. Any break below 1.1580 will open the doors to 1.1540/10. On the upper side break above 1.1626 can lead the pair to 1.1670.

On the data front, the Germany and Eurozone PMI rebounded to the upside in July. Germany Services PMI climbed to 56.7 in July 2020 from 47.3 in the previous month and well above market expectations of 50.5.
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EUR/USD started the week on positive note supported by a weaker US dollar. At the time of writing the pair trading above 1.1710.

The currency pair approaches overbought zone ahead of German IFO business climate- 08.00 GMT.


Levels to watch today:

Resistance: 1.1730 and 1.1750

Support: 1.1680 and 1.1640

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