Daily Market Report by GulfBrokers 2020-2021

[ForexTus]

nice post, thank you

 

[Buzztoad]

That’s useful information. Thanks!

 

[stevevasquez]

That’s a rising curve!

 

[syamfx2020]

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Technology giants HP and Dell reported better-than-expected last quarter financial results on Thursday 27th August after the market close. The last quarter results fuelled by a huge surge in PC demand due to remote working and distance learning. Businesses and students have had to adapt to working and learning remotely, and demand for laptops has increased as a result.

Dell Technologies (NYSE: DELL) second-quarter financial results exceeded Wall Street estimates. Dell's consumer devices revenue up 18%.

• Earnings per share (EPS) $1.92 vs. $1.37 expected
• Revenue $22.7 billion vs. $22.5 billion expected

“We saw strength in the government sector and in education, with orders up 16% and 24%, respectively, as parents, teachers and school districts prepare for a new frontier in virtual learning,” Jeff Clarke, Dell’s CEO, said.

On Friday, the DELL shares reached a fresh yearly high of $67.62 and closed 6.05% higher at $66.21. The stock climbed 29% since the beginning of this year.



HP (NYSE: HPQ) announced better-than-expected third-quarter results on Thursday, August 27th. Meanwhile, the company revenue declined to $14.29 billion from $14.60 billion in the year-ago period.

• Earnings per share (EPS) $.49 vs. $.43 expected
• Revenue $14.29 billion vs. $13.31 billion expected

"Our strong Q3 results and solid beat for the quarter, in the face of unprecedented uncertainty, reflects the agility of our teams and the strength of our portfolio”- HP's CEO Enrique Lores said.

On Friday, the HP stock gained more than 6% while the shares are down almost 9% this year.

Read more here- https://gulfbrokers.com/en/dell-and-hp-beats-earnings-boosted-by-strong-pc-demand

 

[syamfx2020]

The number of coronavirus cases worldwide surpassed 25 million on Sunday, with 843,000 deaths. The US remains the most affected nation, closing in on 6 million infections, according to Johns Hopkins University research. The U.S., Mexico and Brazil represent more than 40% of the global death toll, according to Johns Hopkins. Indian authorities confirmed 78,512 new Covid-19 cases on Sunday -- the fifth consecutive day the country has recorded more than 75,000 daily new cases, according to the Health Ministry. The Philippines reported on Monday 3,446 coronavirus infections and 38 deaths, taking its total caseload to 220,819 and fatalities to 3,558, its health ministry said.


"The front-line responders working tirelessly to save lives during the pandemic deserve time to rest," WHO said in a statement Sunday.

EQUITIES

Asian stock markets rose Monday after China’s manufacturing growth held steady. On Friday, the S&P 500 gained 0.7% to 3,508.01. The index gained 3.3% for the week, capping its longest weekly winning streak since December. The stocks received solid support after a moderate pickup in consumer spending and a policy shift from the Federal Reserve that signalled low-interest rates would stay for an extended period.

OIL

Crude Oil prices started the week on positive note supported by a weaker dollar and bullish weekly API and EIA inventory reports.

CURRENCIES

In the currency market, the dollar index the dollar edged up to 105.80 yen from Friday’s low of 105.20. On the other hand, the Australian dollar and New Zealand dollar reached to the new month highs on Monday boosted by dovish Fed expectations and coronavirus vaccine hopes.


GOLD

Gold price trading steady on Monday as the dollar is on track to lose 1% on the month, the worst August month in 5 years and the fifth straight monthly drop.

Economic Outlook

On the data front, the official NBS Manufacturing PMI in China was at 51.0 in August 2020, posting the sixth straight month of increase in factory activity. The service sector also marked its sixth consecutive month of growth as the official NBS Non-Manufacturing PMI rose to 55.2 in August 2020 from 54.2 in a month earlier, rising at the quickest pace since January 2018.

This week the main highlights of the economic calendar will be the release of RBA interest rate decision and statement, US and Eurozone employment report, and Oil inventories.

Technical Outlook

XAU/USD: The gold price trading higher on Monday, at the time of writing the yellow metal trading above $1960.

The important levels to watch for today: Support- 1950 and 1935 Resistance- 1975 and 1995.

AUD/USD: The currency pair slightly retreated from the early session highs, during the Asian session the pair reached to 20- months high of 0.7380.

The important levels to watch for today: Support- 0.7310 and 0.7280 Resistance- 0.7380 and 0.7410.

Quote of the day: The greatest enemies of equity investor are expenses and emotions – Warren Buffet.


Read more- https://gulfbrokers.com/en/daily-market-report-156

 

[syamfx2020]

Important economic events this week: US and Germany employment report, RBA rate decision, China, Eurozone and UK PMI figures.

Earnings to watch: Zoom Video Communications

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[ForexTus]

Great post thank you

 

[ForexTus]

Interesting post, thank you

 

[syamfx2020]

The stock markets usually widely fluctuate as soon as the election results are published. The main question here in case Democrat leader Joe Biden elected is how the financial markets will react. The market participants believe that it will be negative for the stock market mainly because Biden has said he will roll back Trump’s corporate tax cuts, which would hit corporate profit margins. The Dow Jones Industrial Average has generated 83% average return during Democratic administrations compared with 45% for the Republicans.

The S&P500 index recovered from 2020 March low, surged more than 40% after the Federal Reserve pumped liquidity into the market. According to a 2019-Dimensional Funds report, the market has been positive in 19 of the last 23 election years spanning 1928-2016. The S&P has traded positive in each six-month period before a presidential election except 2008. Since 1929, the total return of the S&P500 has averaged 57.4% under Democratic presidential administrations, versus just 16.6% under Republicans.

Will gold continue to rise?


In August, the gold price hit an all-time high of $2075. The safe-haven metal surged more than 35% this year. The Investors have been buying up gold this whole year as first rising coronavirus cases, escalating tensions between the US and China, and then lower interest rates, and now the US election has heightened uncertainty among investors.

If you look at the technical chart, the last election period shows that the trends of gold prices soaring in the months of July to October before the election and then they witnessed a significant drop after the event. On average, gold prices continue to decrease until January of the following year.

As the 2020 election comes close, GulfBrokers expects the coming weeks in the US presidential election will be volatile for the financial markets due to high levels of uncertainty. The single best way of protecting investors from the downside that an election offers is to ensure they have a truly diversified portfolio.

Trading is risky and your entire investment may be at risk. TC’s available at https://gulfbrokers.com/

 

[syamfx2020]

EUR/USD climbed to more than 2- year high of 1.1995 on Tuesday supported by a weaker dollar. At the time of writing, the currency pair slightly retreated from the daily highs after mixed economic data. The US dollar has been falling following the speech by Chief Jerome Powell at the Jackson Hole Symposium last week.

EQUITIES

Chinese shares recovered the early losses after the Caixin PMI for China showed manufacturing growth was the strongest since 2011. On Monday, Wall Street ended lower while the Nasdaq Composite Index gained 0.7% boosted by tech shares.

OIL

Crude Oil prices trading steady ahead of the API data today. During the last week, the API data showed a 4.5-million-barrel decline in US weekly inventories, versus a draw of 2.7-million-barrels expected by analysts.

CURRENCIES

In the currency market, the US dollar remained under selling pressure against its pairs. The British pound climbed to the highest since December, helped by dollar weakness and after Japan's foreign minister said a broad agreement on a Japan-UK trade deal was close.

GOLD

Gold price surged to fresh weekly high on Tuesday driven by a weaker dollar on expectations that US Federal Reserve will keep short-term interest rates near zero for some time.

Economic Outlook

On the data front, China’s Caixin manufacturing PMI for August rose to 53.1 from July’s 52.8 while analysts expected a slight decline to 52.6.

The Reserve Bank of Australia kept interest rates unchanged, as expected. RBA Governor Lowe said that the “Board will maintain highly accommodative settings as long as is required and continues to consider how further monetary measures could support the recovery.

Coronavirus update:

The number of people infected with the coronavirus across the world hit 25.4 million, of which at least 850 thousand people have died and 16.8 million have recovered, according to data released by the Johns Hopkins University. The US has more than 180 thousand coronavirus-related deaths, followed by Brazil (120,828) and India (64,469). Meanwhile, Phase 3 trials of the much-awaited Oxford COVID-19 vaccine will begin in the United States on Tuesday. The beginning of the trials came in after Trump’s push to fast-track the development of a vaccine.

Technical Outlook

XAU/USD: The gold price trading steady above $1985 on Tuesday supported by $1965 and $1940. If the bullish momentum continues the next upside to watch $2000 and $2025.

The important levels to watch for today: Support- 1980 and 1965 Resistance- 1995 and 2000.



GBP/USD: The currency pair hovers near the daily session highs of 1.3440, overall, the momentum remained bullish throughout the European session.

The important levels to watch for today: Support- 1.3400 and 1.3370 Resistance- 1.3450 and 1.3500.

Quote of the day: The consistency you seek is in your mind, not in the markets - mark Douglas.

Read more- https://gulfbrokers.com/en/daily-market-report-157