Daily Market Report by GulfBrokers 2020-2021

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On Monday, German IFO and US new home sales data came out below forecasts. While SAP shares plunged after Q3 financial results.

Moving ahead there are other few key events to watch

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Crude Oil prices slipped to a 3-week low on Monday due to global demand concerns and amid fears about a resurgence in coronavirus cases. On the other hand, the recent bearish momentum fuelled by the resumption of Libya’s oil exports after the Libyan National Army announced an end to an eight-month oil blockade. The U.S. West Texas Intermediate dropped to near $38.30 on Monday, its lowest since October 5.

EQUITIES

Asian stocks trading lower following the overnight sell-off on Wall Street after the lack of progress in the next round of the US stimulus measures and the rising number of coronavirus cases. On Monday, the Dow Jones Industrial Average lost 2.3%, the S&P 500 dropped 1.9%, and the Nasdaq Composite fell 1.6%. SAP shares plunged more than 30% after the company warned its business would take longer than expected to recover from the pandemic.

OIL

Crude oil prices slightly rebounded from the previous session lows as Investors now await the weekly API report on US crude oil stockpiles due later in the day.

CURRENCIES

In the currency market, the US Dollar index rebounded from last week's lows and hovers near 93 areas boosted by the lack of progress in stimulus negotiations.

GOLD

The gold price remains under pressure on Tuesday. Moving ahead to the North American session, the gold traders and investors will closely watch the release of the US Durable Goods Orders data.

Economic Outlook

On the data front, the New Home Sales figures from the US for September showed a drop to 959K, against the projected 1,025K and the previous 994K, according to a report released by the Commerce Department on Monday.

On the next US stimulus package front, a spokesman of US House of Representatives Speaker Nancy Pelosi said on Monday she was hopeful that Democrats and the Trump administration would reach an agreement on a coronavirus relief bill before the Nov. 3 elections.

Coronavirus update:

Worldwide, more than 43.2 million people have been confirmed infected and more than 1.15 million have died, according to Johns Hopkins University. The U.S. has reported more than 8.6 million cases and 225,500 deaths, according to Johns Hopkins University data. India reports 36,470 new cases in the last 24 hours, the lowest daily count in more than three months, bringing the national total to 7.95 million.

Technical Outlook

EUR/USD:
The currency pair extends slide to a fresh weekly low of 1.1795 during the European session. The next downside levels to watch 1.1780 and 1.1760 for today.

euraud


The important levels to watch for today: Support- 1.1780 and 1.1760 Resistance- 1.1840 and 1.1880.



GOLD: The yellow metal trading in a range between $1930 and 1895 from the last two weeks. At the time of writing, the gold price trading below $1900. Overall, the momentum remained bearish throughout today.

gold neww


The important levels to watch for today: Support- 1900 and 1890 Resistance- 1914 and 1920.

Quote of the day: In the short run, a market is a voting machine, but in the long run it is a weighing machine – Benjamin Graham.

Read more- https://gulfbrokers.com/en/daily-market-report-195
 
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Xilinx (NASDAQ: XLNX) share jumped over 15% on Tuesday after Semiconductor designer Advanced Micro Devices (NASDAQ: AMD) announced it will buy FPGA maker Xilinx in a $35 billion all-stock deal, while AMD's stock slipped about 4%. The acquisition is expected to close by the end of 2021, after which AMD stockholders will own about 74% of the company, with Xilinx shareholders owning the remaining 26%.

The combined company will have a complement of 13,000 talented engineers and over $2.7 billion of annual R&D investment. Xilinx CEO Victor Peng will be joining AMD in a presidential capacity responsible for the Xilinx business and two Xilinx directors are said to be joining the AMD Board of Directors.

On the other hand, AMD released its third-quarter financial results on Tuesday. For the third quarter of 2020, AMD reported $2.8B in revenue, a 56% jump over the same quarter a year ago.

“Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry’s high-performance computing leader and partner of choice for the largest and most important technology companies in the world,” said CEO Dr. Lisa Su.

“We are excited to join the AMD family, Joining together with AMD will help accelerate growth in our data centre business and enable us to pursue a broader customer base across more markets.” Xilinx CEO Victor Peng said.

Read more- https://gulfbrokers.com/en/xilinx-stock-jumps-on-35-billion-acquisition-deal
 
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Microsoft (NASDAQ: MSFT) announced better-than-expected 2021 first-quarter financial results on Tuesday. The company’s overall revenue rose by 12% to $37.2 billion in the quarter ended September 30 Meanwhile, Microsoft shares were down 0.2% in after-hours trading after the unimpressive revenue guidance.

  • Earnings per share: $1.82 vs. $1.54 expected
  • Revenue: $37.15 billion vs. $35.72 billion expected
“The next decade of economic performance for every business will be defined by the speed of their digital transformation, we are innovating across our full modern tech stack to help our customers in every industry improve time to value, increase agility and reduce costs.” Microsoft CEO, Satya Nadella said.

EQUITIES

Global stocks and US futures plunged on Wednesday after U.S. President Donald Trump acknowledged that a coronavirus economic relief deal would likely come after the Nov. 3 election. "After the election, we will get the best stimulus package you have ever seen," US President Trump said.

OIL

Crude oil prices fell below this week low on Wednesday due to weaker-than-expected API inventory data and equity market sell-off. The API data showed the US crude inventories grew by 4.58 million barrels last week, after a build of 584,000 barrels the previous week.

CURRENCIES

In the currency market, the EURO slipped to a fresh weekly low during the European session, amid concerns about a resurgence in COVID-19 across Europe. As per the recent report, French President Emmanuel Macron will announce the government's next move to battle the second wave of the virus on Wednesday night.


GOLD

The gold price retreated back to below $1900 after the US dollar climbed to fresh session highs. During the previous session, the yellow metal closed slightly higher supported by surging global COVID-19 cases and downbeat US consumer confidence data.

Economic Outlook

On the data front, the US Conference Board’s (CB) consumer confidence index fell to 100.9 in October, below the predicted 102, and lower than September’s 101.3 figure.

On the earnings front, Banking giant HSBC shares surged on Tuesday after the bank Q3 results came better-than-expected.

Coronavirus update:

As of Tuesday, there have been more than 43.6 million positive COVID-19 tests across the globe, according to Johns Hopkins University and more than 1.16 million people have died. In the US the number of COVID-19 related deaths surpassed 225K and California become the first US state to report 900,000 infections since the beginning of the pandemic.

Technical Outlook

DOLLAR INDEX:
The US dollar index surged to fresh session highs ahead of next week's US election. At the time of writing, the index trades above the 93.40 level.

euraud


The important levels to watch for today: Support- 1.1780 and 1.1760 Resistance- 1.1840 and 1.1880.



GOLD: The yellow metal trading below the $1900 psychological level. Any break below the $1890 will open doors to $1882 then $1870.

gold neww


The important levels to watch for today: Support- 1890 and 1880 Resistance- 1910 and 1918.

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-196
 
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EURO slides to the lowest level in two weeks ahead of ECB Monetary Policy Statement which is set to be released at 12:45 GMT. Along with this release will see the ECB Press Conference 45-minutes after at 13:30. The European Central Bank is expected to leave rates and QE program unchanged while the market participants await the central bank might give some clues about a possible new round of economic stimulus.

EQUITIES

European stocks extend losses after German Chancellor Angela Merkel reached a deal for a one-month partial lockdown to curb the spread of the virus. On Wall Street, the S&P 500 fell 3.5% on Wednesday and the index slipped more than 7% from its record closing level in early September.

OIL

Crude oil prices trading lower on continued concerns about a recent spike in coronavirus cases and weaker-than-expected EIA and API inventory data. On Wednesday, the EIA reported a rise of 4.320 million barrels in US crude oil stockpiles in the week ended October 23rd.

CURRENCIES

In the currency market, the British pound trading steady above 1.30 on hopes of a free trade agreement between the UK and the EU can be secured by early November, after UK's chief negotiator David Frost rushed to Brussels for trade deal talks with his EU counterpart Michael Barnier.

GOLD

The gold price plunged to a new weekly low on Wednesday after republicans failed to push a stimulus deal before the election and the demand for the US dollar increased.

Economic Outlook

On the data front, the Bank of Japan kept its benchmark rate unchanged at -0.10% and maintained the 10-year government bond yield target at about 0%. During the policy meeting, the bank offered a more upbeat view on the recovery outlook, signaling that it has delivered enough stimulus for the time being.

On the earnings front, Volkswagen, an automobile group, announced that 3Q net income declined 31.8% on year to 2.58 billion euros and adjusted operating profit dropped 33.9% to 3.18 billion euros on revenue of 59.36 billion euros, down 3.4%.

Moving ahead today, the important events to watch:

US – GDP: GMT – 12.30

US – Initial jobless claims: GMT – 12.30

EUROZONE – ECB interest rate decision and statement: GMT – 12.45

EUROZONE – ECB press conference: GMT – 13.30

Coronavirus update:

Italy reported 24,991 new Covid-19 infections in the last 24 hours, a record high and up from 21,994 on Tuesday. German Chancellor Angela Merkel has announced a one-month partial lockdown, the partial lockdown involves the closing of bars, restaurants, movie theatres, and sports facilities. The lockdown will start on November 2 and will officially end on November 30.

Technical Outlook

DOLLAR INDEX:
The US dollar index trading steady above 93.40 during the European session. If the bullish momentum continues the next upside to watch 93.75/90.

euraud


The important levels to watch for today: Support- 1.1780 and 1.1760 Resistance- 1.1840 and 1.1880.



GOLD: The yellow metal trading unchanged near $1880 level ahead of US Q3 GDP numbers and weekly jobless claims data.

gold neww


The important levels to watch for today: Support- 1870 and 1860 Resistance- 1886 and 1895.

Quote of the day: Frankly, I don’t see markets, I see risks, rewards, and money – Larry Hite.

Read more- https://gulfbrokers.com/en/daily-market-report-197
 
I think the DXY is preparing for a nice bull run. Ill be watching how EU and GU react over the coming weeks. Sidelines until the end of next week though
 
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The global card network giants Visa and Mastercard reported quarterly financial results on Wednesday. Visa reported better than financial results compare to Mastercard but the revenue declines for both companies resulted from a lack of higher fees for cross-border transactions, as global travel remains limited. Mastercard reported a 36% YoY drop in cross-border transactions while Visa reported a 29% YoY decline.


Mastercard (NYSE: MA) reported weaker-than-expected third-quarter financial results before the markets opened on Wednesday.

  • Earnings per share: $1.60 vs. $1.65 expected
  • Revenue: $3.8 billion vs. $3.95 billion expected
We are seeing encouraging progress in the trajectory of domestic spending, while travel spending remains a challenge,” Mastercard CEO Ajay Banga, said.

Visa Inc (NYSE: V) reported better-than-expected fourth-quarter financial results on Wednesday. The company Q4 revenue decline to $5.10 billion from $6.14 billion a year prior.

  • Earnings per share: $1.12 vs. $1.09 expected
  • Revenue: $5.1 billion vs. $5.01 billion expected
“The recovery so far has been uneven, V-shaped for domestic volumes but L-shaped for cross-border volumes,” VISA CFO Vasant Prabhu said.

Mastercard shares closed more than 8% lower on Wednesday after weaker-than-expected financial results. While Visa shares rebounded 1% in after-hours trading after declining 4.8% in the regular session following higher-than-expected revenue for its fiscal fourth quarter.

Read more- https://gulfbrokers.com/en/mastercard-vs-visa-earnings-review
 
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