Daily Market Report by GulfBrokers 2020-2021

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Hello traders

It's a shortened trading week due to Good Friday while there are key events to watch: US NFP, UK GDP and OPEC meeting.

Earnings to watch: Micron, Chewy and Lululemon
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The US dollar index rose to a fresh year high while the Dow Jones climbed to a new record high on Tuesday ahead of confirmation of President Biden’s infrastructure package on Wednesday. Biden expected to announce an infrastructure plan that is expected to cost more than $3 trillion.

EQUITIES

Global stocks trading higher on Tuesday in hopes of a quick economic recovery as the vaccination campaigns have gained momentum.

On the US earnings front, Chewy (NYSE: CHWY), Blackberry (NYSE: BB) and Lululemon Athletica (NASDAQ: LULU) reporting earnings today after the market close.

OIL

Crude oil prices trading steady on Tuesday on the expectation that OPEC+ will hold their supply cuts steady into May as well. The investors also waiting for the inventory reports from the API and the EIA later in the day and on Wednesday.

CURRENCIES

In the currency market, the commodity currencies the Australian dollar and New Zealand dollar trading steady while the Euro slipped to a fresh session low against the US dollar.

GOLD

The precious metal dropped to a fresh weekly low pressured by strength in the U.S. dollar and Treasury yields. At the time of writing, the metal trades below the $1700 psychological area.

Economic Outlook

Japan’s retail sales declined 1.5% in February from a year earlier, according to data released by the country’s Ministry of Economy. Meanwhile, the unemployment rate held steady at 2.9% mom in February, slightly below estimates.

Moving ahead today, the important events to watch:

Germany – CPI: GMT – 12.00

US – Consumer confidence: GMT – 14.00

Coronavirus update:

Worldwide, more than 127 million people have been confirmed infected and more than 2.78 million have died. The United States has confirmed over 30.2 million cases and has had more than 549,300 deaths from COVID-19, the highest totals in the world. In the US it was reported that COVID-19 cases are on the rise again in some states and President Joe Biden asked some states to pause their re-opening procedures.

Technical Outlook

US DOLLAR:
The dollar index is trading strong just above the 93 levels during the European session. Overall, the momentum remains bullish throughout this week.

DXY


The important levels to watch for today: Support- 92.90 and 92.60 Resistance- 93.20 and 93.40.

GOLD: The yellow metal trading weaker below $1700 supported by $1690. Today, gold is again expected to face resistance around $1710/15 along with support around $1790 and $1685.

gold neww


The important levels to watch for today: Support- 1690 and 1685 Resistance- 1710 and 1715.

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

Read more- https://gulfbrokers.com/en/daily-market-report-275
 
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The global stock market recorded a solid gain in the first quarter of 2021. The markets are finished in 2020 with a big bang having delivered one of the fastest recoveries in the history of the markets after the sell-off in March 2020.

The US stock indices, Dow Jones and S&P 500 climbed to fresh all-time highs in March driven by various stimulus measures and the quick rollout of covid-19 vaccines. While the Nasdaq100 shy to break new heights after it reached a record closing high on February 12 as the investors shift their focus to economic-recovery sensitive stocks and away from growth stocks.

Few best-performing US stocks in Q1 2021


1. GameStop (NYSE: GME)

2. Avis Budget Group (NASDAQ: CAR)

3. AutoZone (NYSE: AZO)

4. Home Depot (NYSE: HD)

5. Twitter (NYSE: TWTR)

Several factors behind the strong rally in global stocks


  • The quick rollout of covid-19 vaccines appeared to be the primary driver of gains in the quarter.
  • The US stimulus bill was passed by Congress and signed into law by President Biden, providing a $1.9 trillion boost to the economy.
  • EU countries initiated another step toward financial integration with the approval of the EUR 1.8 trillion budget for 2021 to 2027, which also includes a EUR 750 billion coronavirus recovery fund.
  • Markets also responded positively to the Democrats taking control of the Senate.

Dow hits 33k for the first time


cruse


The first quarter has been a profitable year for stocks in the Dow Jones Index. The Index increased by more than 3500 points, the rally was boosted a sharp rally in energy, financial and industrial stocks. On 18th March, the Dow surged above the major 33,000 resistance level for the first time in history, after the Federal Reserve said it expects to keep interest rates unchanged through 2023.

Biggest threats to the stock market in Q2

During the last week, the US indices Dow Jones and S&P 500 retreated from the record highs on concerns about the coronavirus pandemic in Europe. Meanwhile, the US indices rebounded back to the highs this week after U.S. President Joe Biden said that 90% of American adults would be eligible for coronavirus vaccines by April 19. On the other hand, the markets also climbed higher ahead of confirmation of President Biden infrastructure package of more than $3 trillion.

Here are the 4 main downside risks for investors in Q2.

  • Rising covid-19 cases remain a top concern for markets, with total global infections exceeding 123 million. Especially in Europe, worsening infection rates are raising worries of a “third wave”.
  • Any attempt to reform the US tax system has a tremendous impact on the performance of the stock market. On Tuesday, Treasury Secretary Yellen said the Biden administration was considering boosting the corporate taxes from the current 21% to 28% as the economy recovers from COVID-19.
  • With increased government spending, we will probably see an increase in inflation.
  • Another risk for equity markets is rising bond yields. The 10-year Treasury yield jumped 11 basis points above 1.75%, reaching its highest level since January 2020.
On the positive side, the Federal Reserve’s intention of keeping rates low through at least 2023 will continue to provide support for equities and the Covid vaccination programme is still on track despite some looming supply problems.

Conclusion

Considering all these above positive and negative points I advise everyone when you try to build a portfolio there should be at least some less-risky assets that can be useful in helping you ride out future up and downs in the market.

Read more-
 
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“Years of preparation and focus have positioned us as the Internet’s preeminent neighbourhood pet store and a leading pure-play e-commerce company in the pet space.” Chewy CEO, Sumit Singh said.


The e-commerce pet-product retailer Chewy Inc. (NYSE: CHWY) reported better-than-expected financial results for its Fourth-quarter on Tuesday after the market close.

  • Earnings per share (EPS) $0.05 vs -$.10 expected
  • Revenue $2.4 billion vs $1.96 billion expected

This is the fourth time the company has topped consensus revenue estimates as the demand continued to be high for pet foods. During the last year, the pet industry total sales reached a record high of $103.6 billion after the sales of pet food and supplies skyrocketed in the COVID panic buying period.

For the upcoming quarter, the company now forecasts up to £1.55 billion of revenue. It expects its full-year revenue to fall in the range of £6.44 billion to £6.51 billion.

HASH


The stock increased more than 10% in pre-market trading on Wednesday and climbed to above the $88 level following the strong Q4 results. Over the past year, the CHWY shares have gained more than 110%.

Read more here- https://gulfbrokers.com/en/chewy-shares-jump-10-on-q4-results
 
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The UK food delivery giant Deliveroo shares plunged 30% on its stock market debut on Wednesday. At the time of writing, the Deliveroo shares trading at £3.06 on the London Stock Exchange, around 22% below its initial public offering price of £3.90. The company share price opened at £3.02 and then it dropped to a low of £2.83 within the first 20 minutes of trading.

EQUITIES

US stock futures trading lower ahead of U.S. President Joe Biden's infrastructure plan. Biden is expected to announce around $3 trillion to $4 trillion spent in infrastructure and manufacturing sectors on Wednesday.

OIL

Crude oil prices extend lower on Wednesday after weaker-than-expected API inventory data. The data showed the US crude oil inventories increased by 3.9 million barrels in the week to March 26th.

CURRENCIES

In the currency market, the British pound recovered from the early session losses following better-than-expected UK GDP data. The GDP grew by 1.3% in the fourth quarter of 2020, this is slightly higher than the 1.0% growth estimated.

GOLD

The safe-haven metal dropped back to near the monthly lows as the global economy improved and US dollar strength pressured prices.

Economic Outlook

On the data front, China reported better-than-expected manufacturing PMI data. The data showed the official PMI index rose to 1.3 points in March to 51.9, compared to February’s reading of 50.6.

Moving ahead today, the important events to watch:

US – ADP employment report: GMT – 12.15

US – Pending home sales: GMT – 14.00

US – EIA crude oil inventories: GMT – 14.30

Coronavirus update:

Worldwide, more than 128.82 million people have been confirmed infected and more than 2.81 million have died. The United States has confirmed over 31.09 million cases and has had more than 564,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair slightly rebounded from the early session lows supported by upbeat German employment data.

eurusd


The important levels to watch for today: Support- 1.1710 and 1.1680 Resistance- 1.1750 and 1.1790.



GOLD: The yellow metal trading weaker below $1700 supported by $1670. Today, gold is again expected to face resistance around $1706/10 along with the support around $1678 and $1670.

gold neww


The important levels to watch for today: Support- 1678 and 1670 Resistance- 1696 and 1708.

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-276
 
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The American education platform Coursera (NYSE: COUR) stock rose more than 30% on its first day of trading on the NYSE.

The IPO expected range was $30 to 33. $COUR opened for trading at $39 (18% ⬆️ ) and closed at 45$ (36%⬆️).

Coursera works with more than 200 universities and other educational institutions to offer its users online courses.

“We do see a post-pandemic world that’s going to have a whole lot more online learning as part of it,” CEO Jeff Maggioncalda said.
 
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U.S. President Joe Biden announced $2.3 trillion worth of spending to be spread out over an 8-year period including $621 billion for transportation and $580 billion for manufacturing. Biden’s bill includes $111 billion to provide broadband access nationwide and provide better wages and benefits for home care workers.

EQUITIES

US stock futures trading mixed ahead of the Easter break. While European stocks extend higher after better-than-expected German and French Manufacturing data. On the other hand, Chinese shares ended higher despite weaker-than-expected Caixin PMI data.

OIL

Crude oil prices trading sideways ahead of the OPEC meeting results. During the previous session, the black gold slipped despite better-than-expected EIA inventory data. The data showed the US crude oil inventories unexpectedly fell by 0.876 million barrels in the March 26th week.

CURRENCIES

In the currency market, the US dollar index slightly retreated after the index hits a fresh session high of 93.42, the highest level has been since mid-November 2020. The Index fell near to 93 areas during the North American session on Wednesday following the mixed US macro-economic data.

GOLD

The safe-haven metal trading steady above $1710 after the yields on the US 10-year Treasury note retreated to 1.70%. Moving ahead to the North American session, the Gold investors should closely monitor the US jobless claims and ISM data.

Economic Outlook

On the data front, Eurozone Manufacturing PMI was revised higher to 62.5 in March 2021 while German Manufacturing PMI came at 66.6 in March of 2021 from 60.7 in February.

On Wednesday, the US released the ADP employment and pending home sales data. The US private-sector employers added 517K jobs in March as compared to the previous month's upwardly revised reading of 176K. Meanwhile, the Pending home's sales in February plunged 10.6%, the sharpest decline in almost a year.

Moving ahead today, the important events to watch:

US – Jobless claims: GMT – 12.30

US – ISM manufacturing PMI: GMT – 14.00

Coronavirus update:

Worldwide, more than 128 million people have been confirmed infected and more than 2.8 million have died. The United States has confirmed over 31.09 million cases and has had more than 564,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair struggling to find the upside momentum. The important levels to watch this week 1.1680 and 1.1760.

eurusd


The important levels to watch for today: Support- 1.1700 and 1.1680 Resistance- 1.1760 and 1.1790.

GOLD: The yellow metal rebounded after it found support just ahead of the March 8 low at $1,677.10. Overall, the momentum remains bullish throughout the European session.

gold neww


The important levels to watch for today: Support- 1708 and 1700 Resistance- 1720 and 1726.

Quote of the day: Risk no more that you can afford to lose, and also risk enough so that a win is meaningful. – Ed Seykota.

Read more- https://gulfbrokers.com/en/daily-market-report-277
 
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