Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

As per the recent update, Oracle would become TikTok's US technology partner and manage US user data.

"I think Oracle is a great company, and I think its owner is a tremendous guy," US President Trump said. "He's a tremendous person. I think that Oracle would be certainly somebody that could handle it."

Microsoft said in a blog post-Sunday that its offer to acquire TikTok ‘s U.S. operations was rejected. Microsoft was the first to confirm that it was courting TikTok this summer as Trump threatened to ban the app over national security concerns. "We are confident that our proposal would have benefited TikTok users while protecting national security interests," Microsoft said on Sunday.

EQUITIES

Global stocks start the week on positive note boosted by positive news on the coronavirus vaccine. AstraZeneca resumed its phase three trials of its experimental vaccine after they were halted last week over safety concerns. “Clinical trials for the AstraZeneca Oxford coronavirus vaccine, AZD1222, have resumed in the UK following confirmation by the Medicines Health Regulatory Authority that it was safe to do so,” AstraZeneca said.

OIL

Crude oil prices trading unchanged on Monday after Tropical Storm Sally is hitting the Gulf of Mexico and is expected to be a category 2 hurricane.

CURRENCIES

In the currency market, the Japanese Yen trading strong after Japan’s governing party elected Chief Cabinet Secretary Yoshihide Suga as its new leader to succeed Shinzo Abe.

GOLD

The gold price trading slightly lower on Monday renewed hopes for a vaccine against coronavirus, British drugmaker AstraZeneca announced that it had resumed phase 3 trials of its vaccine.

Economic Outlook

On the data front, industrial output both in the euro area and EU rose 4.1% monthly in July, compared with June 2020, according to estimates from Eurostat, the statistical office of the European Union. During the last week, the ECB kept its interest rates and coronavirus-stimulus program unchanged.

Coronavirus update:

Globally More than 29 million people have been reported to be infected by the novel coronavirus and over 926,000 people have died. India has the second-largest number of confirmed cases in the world, behind the US. India reported 94,372 new cases on Sunday, followed by the US with 45,523 and Brazil with 43,718.

Technical Outlook

XAU/USD: Gold price trading in a range between $1935 and 1935 from Friday onwards, at the time of writing the yellow metal trading at $1945.

The important levels to watch for today: Support- 1935 and 1920 Resistance- 1955 and 1970.



EUR/USD: The currency pair trading steady above 1.1850 during the European session, supported by 1.1800 and 1.1760.

The important levels to watch for today: Support- 1.1800 and 1.1760 Resistance- 1.1880 and 1.1925.

Quote of the day: An investor without investment objectives is like a traveller without a destination- Ralph Seger.

Read more- https://gulfbrokers.com/en/daily-market-report-165

 

[syamfx2020]

This week is expected to be a remarkably busy one, the main attractions going to the Federal Reserve, Bank of Japan and Bank of England will hold their policy meeting later this week.

U.S FOMC MEETING – SEPTEMBER 15-16, 2020

The Federal Reserve of the United States is the most important central bank in the world, as it governs the world’s reserve currency, the US Dollar. The Federal Reserve will start its two-day meeting on Tuesday. While once again all attention will be on Jerome Powell. He has recently said that rates will be accommodative for years to support the economy.

BANK OF JAPAN AND BANK OF ENGLAND MEETINGS – SEPTEMBER – 17, 2020

The Bank of Japan (BoJ) will be holding its monetary policy meeting on Thursday. The central bank is expected to maintain its benchmark interest rates at -0.10%. The Bank of Japan will not change policy at its meeting on Thursday with a new Prime Minister to replace Shinzo Abe, to be selected on Monday. As per the latest update, Japan’s governing party elected Chief Cabinet Secretary Yoshihide Suga as its new leader to succeed Shinzo Abe.

The BoE, which meets on Thursday, the economists expect the BoE to leave its interest rate unchanged on Thursday as the bank is in a ‘wait-and-see’ mode. It is also projected to maintain the bond-buying scheme at £745 billion. Meanwhile, Bank of England Governor Andrew Bailey said recently confirmed he expects the pandemic to permanently impact the economy by reducing GDP by 1.5 per cent, while deputy governor Sir David Ramsden warned it could be even worse.

Apart from this, we also have some key economic indicators due to be released on this week.

• Minutes from the Reserve Bank of Australia (RBA) – Tuesday
• The monthly labor market report from the UK – Tuesday
• Euro Area ZEW Economic Sentiment Index for September – Tuesday
• US retail sales - Wednesday
• New Zealand will be releasing its quarterly economic report – Thursday
• UK retail sales figures – Friday

 

[syamfx2020]

We have a very busy economic calendar, key events to watch: Federal Reserve, Bank of Japan and bank of England meetings, US and retail sales, Australia and UK employment report.

Earnings to watch: Adobe and FedEx

 

[syamfx2020]

Apple (NASDAQ: AAPL) stock closed 3% higher on Monday ahead of Apple product announcement event on Tuesday. The event titled "Time Flies" will be held virtually this year considering the Covid-19 pandemic. The investors will closely monitor the event to know the details of new products, as well as various upgrades. The company is expected to unveil a few new hardware like new iPads and Apple Watch Series 6.

EQUITIES

Asian shares and UK stocks rose higher on Tuesday boosted by positive Covid-19 vaccine news and better-than-expected economic data. On Wall Street, NVIDIA (NASDAQ: NVDA) stock closed 6% higher on Monday after the company announced that it will buy the UK-based computer chip designer ARM Holdings from SoftBank for $40B. Vaxart (NASDAQ: VXRT) shares climbed more than 40% after the company received the go-ahead from the Food and Drug Administration to begin testing its experimental oral COVID-19 vaccine in Phase 1 clinical trial.

OIL

Crude oil prices trading lower on Tuesday amid weak global demand due to coronavirus and a looming increase in Libya oil production.

CURRENCIES

In the currency market, the British pound slightly rebounded on Tuesday after mixed UK employment report. On the other hand, the USD/JPY slightly moved higher ahead of Bank of Japan meeting, which will take place on September 17.

GOLD

The gold price edged higher ahead of FOMC meeting. The continuous jump in coronavirus cases globally also helped to boost the demand for the precious metal.

Economic Outlook

On the data front, China Industrial output increased by 5.6% in August, accelerating from a rise of 4.8%. Meanwhile, retail sales rose 0.5%, compared with a -1.1% drop in July.

On the Brexit front, British MPs passed the Internal Market Bill in the House of Commons and will now go to the upper chamber, the House of Lords. While the UK Prime Minister is facing growing opposition within its own party over the controversial Internal Market Bill.

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 29.2 million, of which at least 928 thousand people have died and 19.8 million have recovered, according to data released by the Johns Hopkins University. The United States is the worst-affected country, with more than 6.5 million diagnosed cases and at least 194,000 deaths. Cases in Europe have risen sharply in recent weeks, especially in Spain and France.

"It's going to get tougher. In October, November, we are going to see more mortality," WHO Europe Director Hans Kluge said.

Technical Outlook

XAU/USD: Gold price trading steady above $1960 during the European session, overall the momentum remained bullish throughout the session.

The important levels to watch for today: Support- 1955 and 1940 Resistance- 1970 and 1980.



Dollar Index: The greenback remained under pressure on Tuesday, during the previous session the US Dollar Index fell by 0.3%.

The important levels to watch for today: Support- 92.70 and 92.50 Resistance- 93.10 and 93.50.

Quote of the day: you can never be an entrepreneur if you are afraid to lose money. It’s like being a pilot who is afraid of bad weather – Peter de Savary.

Read more- https://gulfbrokers.com/en/daily-market-report-166

 

[syamfx2020]

EURUSD climbed to 1.19 on Tuesday supported by better-than-expected German economic data. The ZEW economic sentiment rose to 77.4 in Sept vs. 69.8 expected.

Technical levels to watch today:
1.1860 & 1.1830
1.1917 & 1.1940

 

[syamfx2020]

The two days FOMC meeting that began Tuesday and concludes with a statement and a press conference due later today. The central bank scheduled to issue its policy statement at 18.00 GMT. The investors will closely watch the press conference of U.S. Federal Reserve chair Jerome Powell for clues on how long the interest rates could remain at the present low levels and further clarification on the new average inflation target.

EQUITIES

US stock futures trading higher on Wednesday ahead of US Monthly Retail Sales figures and FOMC monetary policy update. Japanese shares traded higher as investors are waiting for the parliamentary approval of Yoshihide Suga as next prime minister later today. On Wall Street, U.S. package delivery giant FedEx (NYSE: FDX) reported strong quarterly earnings on Tuesday and the stock climbed more than 8% in after-hours trading.

OIL

Crude oil prices surged higher on Wednesday as Hurricane Sally disrupted Gulf of Mexico energy production., causing the shutdown of over 25% of American offshore oil and gas production. Meanwhile, API reported the inventories dropped by 9.5 million barrels last week, while markets expected a 1.3 million barrels build.

CURRENCIES

In the currency market, the Dollar index trading slightly lower on Wednesday ahead of FOMC latest policy decision. On Tuesday, the Index surged to above 93 zones after the US Empire State Manufacturing Index for September rose to 17.0, against the projected 6.2.

GOLD

The gold price rebounded back to above $1960 from the previous session lows and trading volatile ahead of Fed interest rate decision and press conference.

Economic Outlook

On the US-China front, on Tuesday, the World Trade Organization ruled that the tariffs imposed on Chinese products by the US in 2018, which triggered the trade war between the two mega economies, were inconsistent with international trade rules.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 12.30

CANADA – Consumer price index: GMT – 12.30

US – Crude oil inventories: GMT – 14.30

US – Fed rate decision and statement: GMT – 18.00

US – Fed chair Jerome Powell conference: GMT – 18.30

Coronavirus update:

The number of people infected with the coronavirus across the world hit 29.5 million, of which at least 935 thousand people have died and 20 million have recovered, according to data released by the Johns Hopkins University. Meanwhile, Chinese CDC chief biosafety expert confirmed that the ordinary Chinese people would be able to get the COVID-19 vaccine as early as November or December, as the Phase 3 clinical trials went very smoothly.

Technical Outlook

GBP/USD: The British pound climbed back to above 1.29 area after better-than-expected UK consumer inflation figures for August.

The important levels to watch for today: Support- 1.2970 and 1.3010 Resistance- 1.2870 and 1.2840.



Dollar Index: The greenback retreated from the previous session highs and trading near to the support area of $92.80/70.

The important levels to watch for today: Support- 92.70 and 92.50 Resistance- 93.10 and 93.50.

Quote of the day: You make most of your money in a bear market, you just don’t realize it at the time- Shelby Cullom Davis.

Read more- https://gulfbrokers.com/en/daily-market-report-167

 

[syamfx2020]

San Mateo, California based Cloud-based data warehouse firm Snowflake, is set to begin trading on the New York Stock Exchange under the symbol “SNOW” on Wednesday and the offering is expected to close on September 18, 2020, subject to customary closing conditions. The investors were patiently waiting for this IPO especially after top American investor Warren Buffet with his holding company Berkshire Hathaway might want to secure shares with a volume of up to USD 250 million.

Snowflake has successfully placed 28 million shares at $120.00 per share, raising it some $3.4 billion at a valuation of over $33 billion. The company initially set its price range between $75 and $85 per share. It then raised the range to be between $100 and $110 per share. And now finally the company has reportedly priced above those ranges at $120.

The company reported $171 million in net losses for the six months ending on July 31, 2020. It lost $177 million during the same period in 2019, so losses have decreased year-over-year.

 

[syamfx2020]

The British pound trading slightly lower on Thursday ahead of Bank of England monetary policy decision later today. The market participants expect the BoE to leave its interest rate unchanged as the bank is in a ‘wait-and-see’ mode. It is also projected to maintain the bond-buying scheme at £745 billion.

EQUITIES

Wall Street ended lower on Wednesday after dovish monetary policy announcement by the Fed and weaker-than-expected retail sales numbers. On the other hand, New Zealand shares edge lower after the economy contracted by 12.4% during the last quarter as compared to the consensus estimates pointing to a reading of -13.3%.

OIL

Crude oil prices rebounded from the early session losses. On Wednesday, the Oil price surged higher after the latest EIA data showed an unexpected drop in U.S. crude inventories in the week ended September 11.

CURRENCIES

In the currency market, the Japanese Yen trading strong on Thursday following comments from BOJ, the policymakers said the country's economy started to bounce back from the coronavirus crisis but it "has remained in a severe situation."

GOLD

The gold price retreated from the previous session high after the dollar climbed higher supported by a less dovish Fed statement.

Economic Outlook

On the data front, Australian Bureau of Statistics announced the unemployment report, the jobless rate in Australia came in at a seasonally adjusted 6.8% in August and the economy added 111,000 jobs last month.

On Wednesday, the Federal Reserve announced its widely expected decision to kept to 0.25%. The US central bank announced that it will keep interest rates near zero for years until a recovery is firmly in place. Fed does not expect inflation of 2% until the end of 2023. The decline in GDP by the end of 2020 will be approximately 3.7%, which is much better than the June forecasts of 6.5%.

Moving ahead today, the important events to watch:

UK – BOE interest rate decision and statement: GMT – 11.00

US – Initial jobless claims: GMT – 12.30

US - Philadelphia Fed Manufacturing Survey: GMT – 12.30

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 29.8 million, of which at least 940 thousand people have died and 20.3 million have recovered, according to data released by the Johns Hopkins University. The United Kingdom recorded 3,991 new positive cases of Covid-19, compared with 3,105 the day before, official statistics showed. India reported its highest daily increase in coronavirus infections on Thursday, adding 97,894 new cases in the past 24 hours.

Technical Outlook

USD/JPY: The currency pair trades near the support zone of $104.70/50; the currency pair slips to fresh monthly low after positive comments from BOJ policymakers.

The important levels to watch for today: Support- 104.50 and 104.20 Resistance- 105 and 105.30.

Dollar Index: The greenback rebounded from the support area $92.70, at the time of writing the Index trading at 93.20.

The important levels to watch for today: Support- 92.70 and 92.50 Resistance- 93.55 and 94.

Quote of the day: The whole secret to winning and losing in the stock market is to lose the least amount possible when you are not right- William O’Neil.

Read more- https://gulfbrokers.com/en/daily-market-report-168

 

[Anna_S]

EURUSD climbed to 1.19 on Tuesday supported by better-than-expected German economic data. The ZEW economic sentiment rose to 77.4 in Sept vs. 69.8 expected.

Technical levels to watch today:
1.1860 & 1.1830
1.1917 & 1.1940
View attachment 57714

I think also for the Von Der Leyen declaretion. Maybe it will grow till next week? Hope so

 

[syamfx2020]

UK retail sales rose by 0.8% in August, according to the Office for National Statistics (ONS) and Sales from online channels moved 2.5% lower against July’s data but were still 46.8% higher than pre-pandemic levels. Meanwhile, U.S. retail sales rose only 0.6% in August following July’s revised rise of 0.9%, according to the latest data from the U.S. Commerce Department, released Wednesday; the data missed expectations as economists were forecasting an increase of 1.1%.

EQUITIES

Wall Street closed weaker yesterday with Tech stocks once again being the hardest hit. The S&P 500 ended down 0.84%, and the Nasdaq dropped 1.27%. While Asian stocks traded higher, China’s Shanghai Composite is up 1.30%, and the Shenzhen Component has edged up 1.10%.

OIL

Crude oil prices surged fresh weekly high on Friday boosted by the positive weekly API and EIA inventory data and oil prices also received some support after Saudi Arabia intensifying up the pressure on the UAE, Nigeria, and Iraq to adhere to the group’s production cuts.

CURRENCIES

In the currency market, the Dollar index fell after mixed economic data. The US Building Permits dropped to 1.47M, against the projected 1.51M and the Housing Starts fell to 1.42M, compared to the expected 1.47M.

GOLD

The gold price rebounded from the previous session low, the precious metal fell by more than 1% on Thursday responding to the statement of the Fed meeting published on Wednesday.

Economic Outlook

On the data front, US Labor Department released the latest Initial Jobless Claims figures, new jobless claims fell to 860,000 last week, which is the lowest number since the pandemic began but continues to be at a historically high level.

On Thursday, The Bank of England opted to leave interest rates unchanged at 0.1% at the September meeting and vote to continue with its existing programmes of quantitative easing programme to a total of £745BN. For 2020 Q3, economists at the Bank expect GDP to be around 7% below its 2019 Q4 level, less weak than had been expected in the August Report.

Coronavirus update:

The number of confirmed COVID-19 cases has surpassed 30 million worldwide, and the death toll stands at 943,203. The United States is the worst-affected country, with more than 6.6 million diagnosed cases and at least 197,397 deaths. In Europe 4,893,614 cases of COVID-19 have been recorded and 226,524 death. "We have a very serious situation unfolding before us," said Dr Hans Kluge, WHO's regional director for Europe.


Technical Outlook

GBP/USD: The currency pair trades below 1.30 zone, any break above 1.3010 will open doors to 1.3040 and 1.3080. On the downside, the immediate support near 1.2940 followed by 1.2900.

The important levels to watch for today: Support- 1.3010 and 1.3040 Resistance- 1.2940 and 1.2900.

Dollar Index: The greenback again retreated to near the support zone 92.70, at the time of writing the index trades near 92.85.

The important levels to watch for today: Support- 92.70 and 92.50 Resistance- 93.20 and 93.55.

Quote of the day: Investing is fun and exciting, but dangerous if you don’t do any work – Peter Lynch.


Read more- https://gulfbrokers.com/en/daily-market-report-169