Daily Market Report by GulfBrokers 2020-2021

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The luxury sports car maker Ferrari (BIT: RACE) reported better-than-expected third-quarter earnings on Tuesday. The company revenues sank by 3% to 888 million euros, from 915 million euros in the same period last year and Profit was €171m in the quarter, up slightly from €169m in the same period last year. Meanwhile, the shipments were down by 161 units, to 2,313 vehicles.

"Solid proof that we are now running on all cylinders and we will get larger improvements from focusing on other parts of our business, including Formula 1," Ferrari CEO Louis Camilleri said. He also expects Ferrari's first fully electric model to arrive after 2025.

Ferrari is expected to announce one more new model before the end of the year after the company in September launched the Portofino M, a modified version of its top-selling grand tourer.

HASH


The strong earnings boosted the Ferrari share price on the Milan stock exchange where the stock traded more than 7% higher in afternoon trading on Tuesday.

Read more- https://gulfbrokers.com/en/ferrari-stock-hits-a-new-all-time-high-after-earnings-beat-estimates
 
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As we are heading to the final stage of the political event of the year. Democrat Joe Biden pushing closer to the 270 Electoral College votes and Donald Trump is on 214. While the outstanding mail ballots are difficult to estimate because some states like Nevada opted to send ballots to all 1.7 million active registered voters this year due to the pandemic.

“I’m not here to declare that we won, but I am here to report, that when the count is finished, we believe we will be the winners,” Democrat candidate Joe Biden said on Wednesday.

EQUITIES

Wall Street ended higher on Wednesday as the latest election results show that Joe Biden is much closer to victory, his administration is expected to pass big stimulus packages, in an effort to boost the economy that has been so hard-hit by the COVID-19 pandemic.

OIL

Crude oil prices trading higher on Thursday boosted by the greater than expected drop in EIA US crude inventories over the past week. On the other hand, OPEC is considering a possible extension of oil output restrictions into Q1 2021.

CURRENCIES

In the currency market, the EURO ignored the weaker-than-expected German factory order data and climbed to fresh weekly high against the US dollar. At the time of writing, the currency pair trades above 1.1780.

GOLD

The gold price volatility continues as the inventors anxiously awaiting the final results of US election and the yellow metal also supported by the continued increase in fresh coronavirus cases across several countries.

Economic Outlook

On the data front, the Bank of England decided to leave benchmark interest rates unchanged at 0.10%. BOE increased its bond-buying program by a larger-than-expected £150 billion but warned that Britain's economy is expected to shrink by 11% in 2020, compared to a 9.5% contraction predicted in August.

Moving ahead to the North American session, the traders and investors remained cautious of FOMC interest rate decision and the Fed Chair Jerome Powell press conference. Fed is expected to hold its federal fund's rate steady and the key focus will be on the FED statement and the press conference of U.S. Federal Reserve chair Jerome Powell.

Moving ahead today, the important events to watch:

US – Initial jobless claims: GMT – 13.50

US – FOMC Interest rate decision and statement: GMT – 19.00

US – FOMC press conference: GMT – 19.30

Coronavirus update:

The worldwide coronavirus cases have reached 48 million. According to Johns Hopkins University, the U.S. had 102,831 confirmed new cases of the coronavirus Wednesday, an increase of more than 11,000 from the day before. Italy reported 30,550 new infections on Wednesday, up from 28,244 on Tuesday; and registered 352 fatalities.

Technical Outlook



GBP/USD:
The British pound climbed back to above 1.30 after the BOE pumps additional £150B into the UK economy and also supported by the weaker USD.

eurusd


The important levels to watch for today: Support- 1.2980 and 1.2940 Resistance- 1.3050 and 1.3080.

GOLD: The yellow metal surged to a fresh session high of $1919 on Thursday. If the bullish momentum continues the next upside to watch $1930/32. On the other hand, the immediate support at $1910/08.

gold neww


The important levels to watch for today: Support- 1910 and 1895 Resistance- 1926 and 1932.

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-202
 
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On Thursday, the US Federal Reserve kept interest rates near zero and made no change to asset purchases in its policy meeting. “The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world,” FED statement said.

Fed Chair Powell said the central bank ready to do whatever needed to support the US economy by altering its bond-buying programme but did not announce any new measures.

EQUITIES

Global stocks trading mixed on Friday as investors await the results of the United States presidential election. With the ballots still being counted, Democratic candidate Joe Biden is six electoral votes away from reaching the 270 needed to reach the White House. Meanwhile, President Trump blasted the mail-in voting process accusing the Democrats of attempting to steal the election through the flawed system.

OIL

Crude oil prices slightly retreated from the highs as the investors are still worried about the fresh lockdowns across Europe will weaken global fuel demand.

CURRENCIES

In the currency market, the EURO and New Zealand dollar surged to a fresh session high boosted by the weaker dollar. On the other hand, the British pound trading slightly lower against the EURO.

GOLD

The gold price climbed fresh monthly high on Thursday supported by the weaker-than-expected US weekly jobless claims data and the positive lead of Democrat Joe Biden in the US presidential election.

Economic Outlook

On the data front, the US labour department released the latest jobless claims data on Thursday. The data showed the Unemployment Claims for last week surged to 751K against the anticipated 740K.

On the earnings front, Qualcomm (NASDAQ: QCOM) stock spiked more than 15% on Thursday after the company Q4 2020 results beat estimates. “Our fiscal fourth-quarter results demonstrate that our investments in 5G are coming to fruition and showing benefits in our licensing and product businesses,” CEO Steven Mollenkopf said.

Moving ahead to the North American session, the traders and investors are focused on the latest US non-farm payrolls report. The October non-farm payrolls are expected to show a growth of 600K new jobs after growing by 661K in the previous month.

Coronavirus update:

The overall number of global coronavirus cases has topped the 48.5 million mark, while the death toll surged to more than 1,231,610 as of Friday morning, according to the Johns Hopkins University.

Technical Outlook

Dollar Index:
The Index remained under pressure throughout this week. At the time of writing, the index trading near to the crucial support level of 92.40.

euraud


The important levels to watch for today: Support- 92.40 and 92 Resistance- 92.90 and 93.30.



GOLD: The yellow metal rose more than 2% on Thursday. Overall, the momentum remained bullish throughout this week.

gold neww


The important levels to watch for today: Support- 1932 and 1920 Resistance- 1952 and 1973.

Quote of the day: The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money in trading – Victor Sperandeo.

Read more- https://gulfbrokers.com/en/daily-market-report-203
 
Papa John's (NASDAQ: PZZA) shares closed 8% higher on Thursday after better-than-expected Q3 financial results.

The company pizza sales rose 17% from a year earlier to $473M.

EPS $0.35 vs $0.32 expected
Revenue $473M vs $466M expected

"Papa John's sustained its momentum and delivered double-digit comparable sales growth, higher earnings and robust free cash flow," CEO Rob Lynch said.

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Dollar Index

Support: 91.74 and 91 Resistance: 92.78 and 93.50
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EURUSD

Support: 1.1780 and 1.1600 Resistance: 1.1970 and 1.2090
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NZDUSD

Support: 0.6760 and 0.6710 Resistance: 0.6860 and 0.6910
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Gold

Support: 1930 and 1890 Resistance: 1975 and 2020
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The Euro climbed to a fresh session high of 1.1895 on Monday against the US dollar. The US dollar remained under pressure amid hopes for a large fiscal stimulus package to prop up the US economy after Joe Biden’s victory in the US presidential election. Meanwhile, President Donald Trump does not recognize the results of the vote and is determined to challenge them in court.

EQUITIES

Global stocks and US futures started the week on a positive note as the market participants are expecting the Biden's win will lead to fewer regulatory changes and additional monetary stimulus.

OIL

Crude oil prices rebounded from the Friday session lows. At the time of writing, both WTI and Brent futures trading near to the previous week highs.

CURRENCIES

In the currency market, the New Zealand dollar surged to a fresh year high of 0.6815 against the US dollar ahead of RBNZ interest rate decision on Wednesday.

GOLD

The gold price trading higher supported by the weaker dollar and a resurgence in virus cases in Europe and some US states.

Economic Outlook

On the data front, Germany’s exports surpassed expectations, with +2.3% in September vs. +1.4% expected while the current account surplus in Germany increased to EUR 26.3 billion in September of 2020 from EUR 23.5 billion a year earlier.

This week the main highlights of the economic calendar will be the release of RBNZ interest rate decision, UK employment and GDP data, US Consumer Price Index and Producer price index figures.

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 50.1 million, with over 32.8 million being declared recovered, according to Johns Hopkins University. The United States saw a record number of new coronavirus infections last week, with the total number of cases nearing 10 million.

Technical Outlook

EUR/USD:
The currency pair trading steady above 1.1850 boosted by stronger-than-expected German economic data and the weaker dollar.

DXY


The important levels to watch for today: Support- 1.1840 and 1.1800 Resistance- 1.1900 and 1.1940.

GOLD: The yellow metal slightly retreated from the daily highs. At the time of writing, the gold price trading below $1960.

gold neww


The important levels to watch for today: Support- 1950 and 1935 Resistance- 1965 and 1975.

Quote of the day: When we own portions of outstanding businesses with outstanding management, our favourite holding period is forever – Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-204
 
Stocks and oil price started the week on a bullish note following the positive COVID19 vaccine news and on the earnings front, Beyond Meat posted Q3 loss.

Moving ahead there are other few key events to watch
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Dollar Index rebounded from near two months low and surged to fresh weekly high on Tuesday after U.S. drugmaker Pfizer Inc said its experimental COVID-19 vaccine was more than 90 per cent effective, based on initial trial results.

U.S. President-elect Joe Biden has hailed as a “breakthrough” after the announcement. Meanwhile, US President Donald Trump accused pharma giant Pfizer on Monday night of withholding its COVID-19 vaccine announcement until after the US elections.

“The US Food and Drug Administration (FDA) and the Democrats didn’t want to have me get a Vaccine WIN, prior to the election, so instead it came out five days later -- As I’ve said all along!” – Trump said.

EQUITIES

Global stocks trading steady on Tuesday as investors are encouraged by the victory of Democrat Joe Biden in the US presidential election and positive COVID-19 vaccine update from Pfizer. While the US futures retreated from the highs after Cleveland Federal Reserve Bank President Loretta Mester said the emergency lending programs the Fed set up during the coronavirus pandemic are still needed.

OIL

Crude oil prices climbed to two-week highs after renewed vaccine hopes and comments from Saudi Arabia’s energy minister Prince Abdulaziz bin Salman who said that the OPEC+ deal on oil output cuts could be adjusted as it has been in the past if there is consensus among members of the group.

CURRENCIES

In the currency market, the British pound trading strong against the US dollar and Euro following the mixed UK employment data. The currency pair also supported by comments from the British finance minister Rishi Sunak that there was significant progress made on the Brexit negotiations front.

GOLD

The gold price slightly rebounded from the previous session lows. The yellow metal plunged more than 5% on Monday after the positive vaccine news which raised optimism of a global economic recovery.

Economic Outlook

On the data front, The UK Unemployment Rate for 3 months ending September rose from 4.5% to 4.8% while the claimant Count Change in October fell by 29.8K, contrary to forecasts of an increase of 36K. On the other hand, China's annual inflation rate eased to 0.5% in October from 1.7% in the previous month and below market expectations of 0.8%.

On the earnings front, Beyond Meat (NASDAQ: BYND) stock plunged more than 20% on Monday after the company reported weaker-than-expected third-quarter results. “We experienced the full brunt and unpredictability of Covid-19 on our net revenues,” CEO Ethan Brown said.

Coronavirus update:

Worldwide, more than 50 million people have been confirmed infected and more than 1.25 million have died, according to Johns Hopkins University.

Technical Outlook

EUR/USD:
At the time of writing, the currency pair trading below the short-term support level of 1.1800. If the bearish momentum continues the next downside levels to watch today 1.1760 and 1.1710.

eurusd


The important levels to watch for today: Support- 1.1760 and 1.1710 Resistance- 1.1850 and 1.1890.



GOLD: The yellow metal retreated back to below $1880 after it failed to break above $1890 resistance level.

gold neww


The important levels to watch for today: Support- 1860 and 1848 Resistance- 1880 and 1890.

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-205
 
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The world's largest burger chain McDonald’s (NYSE: MCD) reported better-than-expected third-quarter financial results on Monday. The strong Q3 results boosted by the drive-thru and online sales as more customers using the drive-thru and delivery options.

  • Earnings per share: $2.22 vs. $1.90 expected
  • Revenue: $5.42 billion vs. $5.4 billion expected

The fast-food giant revealed a 2% decline in its global comparable-store sales during the last quarter while the same-store sales in the U.S. up 4.6% in Q3. On the other hand, the net income was $1.8 billion, up 10% year-over-year.

McDonald’s says it has shaved 30 seconds off of the average drive-thru time since 2018; its future plans hinge on reducing those times even further. Nearly 95 per cent of McDonald's 14,000 US restaurants have a drive-thru.

“This is particularly true with our drive-thru business, which continues to be one of our biggest areas of strength,” McDonald's Chief Financial Officer Kevin Ozan said.

McDonald's has more than 39,000 restaurants worldwide and 13,800 in the U.S. McDonald's recently reopened around 2,000 dining rooms; the company temporarily closed thousands of their indoor dining options due to the coronavirus pandemic. The company also announced new plant-based burger and new Crispy Chicken Sandwich both will be arriving in early 2021.

HASH


$MCD shares climbed more than 3% on Monday during the pre-market trading after the results announced but the stock retreated back to lower before the closing.

Read more- https://gulfbrokers.com/en/mcdonalds-posts-strong-q3-earnings-boosted-by-drive-thru-sales
 
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