Daily Market Report by GulfBrokers 2020-2021

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US plan to impose new tariffs on $3.1 billion of exports from the EU and UK. United States Trade Representative revealed on Wednesday the Trump administration may impose new tariffs on goods coming from the European Union and the United Kingdom. The new tariffs include on European exports like olives, beer, gin and trucks, while also increasing duties on other products including aircraft, cheese, and yoghurt.

EQUITIES

European and UK stocks fall on Wednesday after the new tariff news and Asian stocks end lower after White House economic official Larry Kudlow said that the U.S. trade deal with China was not only fully intact. On Tuesday, Wall Street closed higher the Dow Jones gained 131 points to 26,156. The S&P 500 climbed 13 points to 3131.

OIL

Crude oil prices edge lower after API data showed US crude stockpiles rose by a higher-than-expected 1.7 million barrels in the latest week.

CURRENCIES

The New Zealand dollar remains weak on Wednesday after negative comments from RBNZ. While the US dollar rebounded from 2- week low supported by better-than-expected economic data.

GOLD

The yellow metal climbed to a fresh high on Wednesday and trading highest level since Oct-2012 as investors turned to safe-havens amid concerns over the second wave of coronavirus infections.

Economic Outlook

On the data front, the German IFO survey showed a further improvement in the Business Climate, this time climbing to 86.2 in June (from 79.7). On Tuesday, US New home sales saw a fresh jump, rising 676k over the month. Meantime, PM Johnson announced that cinemas, museums, bars and restaurants will reopen starting July 4th and that the two-meter social distancing rule will be reduced to 1 meter.

During the Asian session, the Reserve Bank of New Zealand (RBNZ) left interest rates unchanged at a record low level of 0.25% and its QE program steady at N$60 billion. The central bank committee agreed that the June quarter data will show a substantial decline in economic activity as the severe global economic disruption caused by the COVID-19 pandemic.

Coronavirus Update:

The number of people infected with the coronavirus across the world rose towards 9.3 million, of which around 470 thousand have died. On Tuesday, Canada announced 326 new cases of the novel coronavirus, including 18 deaths. WHO Director-General Tedros Adhanom Ghebreyesus said it took more than three months for the world to see 1 million confirmed infections, but just eight days to see the most recent 1 million cases.

Technical Outlook

GOLD:
Gold price trading steady above $1770 on Wednesday, the next important level to watch $1800.

audusd


The important levels to watch for today: Support- $1764 and $1750 Resistance- $1780 and $1800.

EUR/USD: The pair dropped to a new session low of 1.1270 during the European session after the new tariff news from the white house.

cruse


The important levels to watch for today: Support- 1.1270 and 1.1240 Resistance- 1.1320 and 1.1360.

Quote of the day: The goal of a successful trader is to make the best trades, money is secondary- Alexander Elder.


Read more- https://gulfbrokers.com/en/daily-market-report-112
 
EUR/USD remains under pressure, at the time writing the pair trading around 1.1240 support zone. Moving ahead today the EURO traders will focus on the minutes from June European Central Bank meeting- which will release at 11.30 GMT.

Important levels to watch today:

Support: 1.1210 and 1.1170

Resistance: 1.1280 and 1.1320
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The IMF said on Wednesday the global economy will shrink 4.9% this year, compared with its April estimate of 3%. The COVID-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast. In 2021, global growth is projected at 5.4 per cent, the report said.

EQUITIES

Global stocks fell following a renewed US-EU trade tensions and downward revision of growth forecasts by the International Monetary Fund (IMF). While European stocks slightly recovered from the early losses after the ECB launched a new facility to protect the financial system from the impact of coronavirus. On Wednesday, Wall Street ended lower as Dow Jones had its biggest correction in over 2 weeks falling over 700 points.

OIL

Crude oil prices plunged to the fresh weekly low after rising US inventories, the EIA weekly report posted a 1.4 million increase in crude oil inventories and the API reported an increase of 1.75 million barrels on Tuesday.

CURRENCIES

Commodity currencies like the Australian dollar and New Zealand dollar depreciated after global oil prices have fallen sharply on Wednesday.

GOLD

The yellow metal trading strong this whole week as concerns about a surge in the number of coronavirus cases mounted. The gold price further received support after IMF downgrade to global GDP projections.

Economic Outlook

The Trump administration is considering expanding and raising tariffs on $7.5 billion of imports from the European Union and the U.K. that it first imposed last year. At the US-China front, Trump has ordered US Trade Representative to check whether China was buying US lobsters under the phase one trade deal.

On the data front, Japan's all industry activity index tumbled by 6.4 per cent month-over-month in April 2020, following a downwardly revised 3.4 per cent fall in March and posting the third month of decline for the index.

Moving ahead today, the important events to watch:

Europe ECB meeting minutes – 11.30 GMT

US Gross Domestic Product – 12.30 GMT

US Durable goods orders - 12.30 GMT

US Jobless claims – 12.30 GMT

Coronavirus Update:

The number of people infected with the coronavirus across the world rose towards 9.5 million, of which around 480 thousand have died. The US has recorded a one-day total of 34,700 new confirmed COVID-19 cases, the highest level since late April. The recent spike in cases has prompted US states of New York, New Jersey and Connecticut to enforce 14-day quarantine for travellers from nine other states entering these regions. India recorded its biggest surge in the number of coronavirus cases in 24 hours for a second consecutive day with 16,922 new patients. Australia reported its first COVID-19 death in more than a month on Wednesday, Victoria recorded 33 new cases of coronavirus on Thursday, the biggest increase in new cases in more than two months. The WHO said Wednesday that the number of COVID-19 cases worldwide is expected to reach 10 million within the next week.

Technical Outlook

GOLD:
Gold price trading in a range between $1758 and $1778 currently. The yellow metal dropped to $1753 on Wednesday after a peak to $1780 but bounced back later to above $1760.
audusd

The important levels to watch for today: Support- $1753 and $1740 Resistance- $1780 and $1800.

EUR/USD: The pair remained under pressure during the European session, at the time writing the currency pair trading below $1.1240.
cruse

The important levels to watch for today: Support- 1.1210 and 1.1170 Resistance- 1.1280 and 1.1320.

Quote of the day: Don’t wait for better investment options, invest and then wait for a better time.


Read more- https://gulfbrokers.com/en/daily-market-report-113
 
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The commerce department reported on Thursday, the US gross domestic product (GDP) decreased at an annual rate of 5 per cent in the first quarter of 2020. This is the sharpest quarterly decline since an 8.4 per cent fall in the fourth quarter of 2008 during the depths of the financial crisis.

EQUITIES

European stock markets extended gains for a second consecutive session on Friday after ECB launched a new facility that will provide euro liquidity to a broad set of central banks outside the euro area until June 2021. Markets in Shanghai and Hong Kong were closed today for a public holiday. On Wall Street, the Dow Jones Industrial Average rose 1.18%, the S&P 500 gained 1.10% and the Nasdaq Composite added 1.09%.

OIL

Crude oil price rebounded from the early lows; the oil prices tumbled as much as 5% a barrel on Wednesday. Meanwhile, Saudi Arabia's oil exports dropped by 65.4 per cent in April when compared to the same month a year earlier, or a fall of about $12 billion, official data showed on Thursday.

CURRENCIES

US dollar trading higher on Friday, the economic data released on the previous session weighed heavily on the US dollar. U.S. weekly jobless claims reported higher than expected 1.48 million, vs. 1.30 million estimates and the Goods Trade Balance from the US for May also showed a deficit of 74.3B against the anticipated deficit by 68.0B

GOLD

The yellow metal climbed above $1765 on Friday and was set for its third straight weekly gain as investors turned to safe-haven assets amid a spike in coronavirus cases in several countries across the globe.

Economic Outlook

On Thursday the US Federal Reserve placed new restrictions on the banking industry after its annual stress test found that several banks could get close to minimum capital levels in scenarios related to the coronavirus pandemic.

On the data front, The Bank of Thailand (BOT) kept its one-day repurchase rate unchanged at 0.50%, after cutting it by 25 basis points in May.

Coronavirus Update:

Over 167,000 confirmed cases of the novel coronavirus infection were registered worldwide on June 25, with the overall number of such cases exceeding 9.29 million, the World Health Organization (WHO) said in its daily bulletin on Thursday. The WHO also warned recently that the number of cases could reach 10 million as soon as next week. In Europe, the UK reported more than 1 thousand new cases, while Germany reported 0.5 thousand.

Technical Outlook

GOLD:
Gold price trading steady during the European session, supported by $1758.

audusd


The important levels to watch for today: Support- $1758 and $1750 Resistance- $1778 and $1800.

EUR/USD: The pair trading around 1.1220 on Friday after hitting fresh week high of 1.1350 on Tuesday.

cruse


The important levels to watch for today: Support- 1.1190 and 1.1150 Resistance- 1.1240 and 1.1280.


Quote of the day: You can’t reach success in investment if you do not think independently- Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-114
 
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Footwear giant Nike (NYSE: NKE) released its fourth-quarter earnings results on Thursday. The company reported a surprise loss of $790 million due to store closures across North America and other parts of the world and the revenue fell 38% to $6.31 billion in the three-month period ending May 31 compared to the same quarter last year. In North America, the company’s biggest operating region, revenues plunged 46 per cent to $2.2 billion but just 3% in China as stores reopened there.
  • Earnings per share (EPS) $-0.51 vs. $0.7 expected
  • Revenue $6.31 billion vs. $7.32 billion expected
The gross margin declined 820 basis points to 37.3% due to increased inventories, factory closures and other costs associated with the pandemic crisis. One bright spot was increasing digital sales; the sales increased 75%, representing about 30% of total revenue and digital sales at the brand also increased by 47% for the entire year to $5.5 billion. According to the company, the Nike e-commerce app has been downloaded 8 million times since February. And the other good news is, the company said about 90% of its directly owned stores are now open worldwide, including all of its stores in China.

“The global pandemic has made it clear that consumer behavior is changing rapidly, providing us the opportunity to accelerate the pace of our digital acceleration,” Chief Executive John Donahoe said in a statement. “We are continuing to invest in our biggest opportunities, including a more connected digital marketplace,” he added.

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On Thursday the $NKE rallied approximately 3% ahead of the earning while the stock slipped 3% after the market close. On Friday at the time of writing, the Nike shares trading around $97, 4% lower.

Read more- https://gulfbrokers.com/en/nike-revenue-plunged-38-due-to-shutdowns-but-online-sales-jumped-75
 
Salmán heredó el trono el 23 de enero de 2015 después de la muerte del rey Abdullah y ha sido investido como el séptimo rey de Arabia Saudita. El 29 de abril de 2015, Adel al Jubeir fue nombrado Ministro de Asuntos Exteriores de Arabia Saudita, siendo la primera persona en ocupar este puesto sin pertenecer a la Casa de Saud.
 
Los precios del petróleo suben este viernes motivados por el compromiso de la Organización de Países Exportadores de Petróleo y sus socios (Opep +) de perseverar en el cumplimiento del ajuste histórico de 9.7 millones de barriles por día (bpd).

El precio del petróleo intermedio de Texas (WTI) cerró este viernes con un aumento del 2.34%, a $ 39.75 por barril, en un día en el que el petróleo crudo texano ha sellado una ganancia semanal de alrededor del 11%, estimulada por altos niveles de cumplimiento con Los recortes de la Organización de Países Exportadores de
Petróleo y sus socios (Opep +). Mientras que Londres Brent ganó 1.59% para terminar la semana a $ 42.09 por barril.
 
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The British pound trading lower against the Dollar and Euro on Monday as Brexit trade talks resume this week. On Monday, Britain’s chief negotiator Frost will meet in person EU’s deputy chief negotiator Martinez Alberola in Brussels for the first time since March. Meantime, Ireland’s Foreign Minister Simon Coveney said on Monday that the UK must follow through on Brexit promises.

EQUITIES

Global stocks are trading in the negative territory as the surge in U.S. coronavirus cases has investors questioning the global economic recovery. Japan’s Nikkei 225 is worst hit as it has plunged over 1%, followed by Hong Kong’s Hang Seng and China’s Shanghai Composite. On Wall Street, Facebook shares dropped 8% on Friday after some of the world's biggest advertisers, including Unilever and Coca Cola, have pulled ads from the platform citing its failure to address hate speech.

OIL

Crude oil price started this week with a bearish note on growing concerns about the latest spike in coronavirus cases and rising crude inventories.

CURRENCIES

EURO rose against the dollar on Monday after Eurozone economic sentiment improves in June. The economic sentiment indicator in the Euro Area rose by 8.2 points from the previous month to 75.7 in June 2020.

GOLD

The yellow metal has gained almost 1.4% so far during the previous week. The record jump in the U.S COVID-19 infections caused a surge in metal prices for the third straight week.

Economic Outlook

Moving ahead to the North American session, investors will closely monitor the latest updates from UK/EU trade negotiations and the US pending home sales figures. Meanwhile, British Prime Minister Johnson is expected to announce the first school rebuilding program since 2014 later in the day, which is estimated to cost over £1 billion.

Coronavirus Update:

According to Johns Hopkins, the number of people infected with COVID-19 across the world crossed 10.1 million, of which around 502 thousand have died. The United States has become the worst-affected country, with more than 2.5 million diagnosed cases and at least 125,539 deaths. The cases are also spiking in South America — most notably in Brazil, which has seen more than 1.2 million confirmed cases and more than 57,000 reported deaths On Sunday China has imposed a strict lockdown near Beijing to curb a fresh outbreak.

Technical Outlook

GOLD:
Gold price trading steady above $ 1770 on Monday, supported by concerns over the second wave of coronavirus infections.

audusd


The important levels to watch for today: Support- $1764 and $1745 Resistance- $1778 and $1795.

EUR/USD: The pair trading above 1.1250 during the European session supported by 1.1240 and 1.1190.

cruse


The important levels to watch for today: Support- 1.1240 and 1.1190 Resistance- 1.1280 and 1.1310.

Quote of the day: The best traders are not afraid of holding on to strong stocks, they are afraid of holding on to losing stocks- Tyler Bollhorn.

Read more- https://gulfbrokers.com/en/daily-market-report-115
 
EUR/GBP trading above 3- month high, 0.9160. Moving ahead, the GBP traders will closely monitor the fresh updates from UK/EU trade negotiations.

The important level to watch this week:
Support: 0.9080 and 0.9000
Resistance: 0.9190 and 0.9280
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US Dollar recovered from the previous session losses, at the time writing $DXY hovers around last week high the 97.75. Any break above this level will open the doors to 98.30 and on the other side the immediate support around 97.00.
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