Daily Market Report by GulfBrokers 2020-2021

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US food delivery company Doordash has agreed to acquire Finland-based grocery delivery firm Wolt for approximately USD 8.1 billion to expand its business to Europe. The deal will be formally concluded by the second half of 2022.

“By joining forces, we believe we will accelerate our product development, bring greater focus to each of our markets, and improve the value we provide to consumers, merchants, as well as Dashers and couriers around the world,” Tony Xu, CEO of DoorDash said.

Doordash was founded in 2013. DoorDash is currently present in more than 7,000 cities across the US, Canada, Australia, and Japan. Wolt was founded in 2014 and the company allows users to have meals, groceries and more delivered to their homes or offices. Wolt has more than 4,000 employees, operates in 23 European markets.

"We are incredibly excited to join forces with Tony and the DoorDash team to build something even bigger together," - Wolt, CEO Miki Kuusi said.

DoorDash Q3 revenue beat estimates
food-delivery-5217579_1280

Doordash (NYSE: DASH) stock skyrocketed from $176 to $234 in the last 4 days and the share price rose 24% on November 9th after the news. The stock also received strong upside momentum after the company delivered relatively better-than-expected third-quarter financial results as the recovery continued.

During the last quarter, Doordash revenue increased 45% to $ 1.28 billion, beating expectations of $ 1.18 billion. Meanwhile, the food delivery company reported a net loss of $101 million for the quarter from $43 million a year ago.

Read the detailed report here - https://gulfbrokers.com/en/doordash-agreed-to-buy-finnish-wolt-for-81b

 

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Following a broad slump on Monday, the EURUSD struggling to find the upside momentum as the US Dollar remains strong. The currency pair fell to a 16 -month low against the US dollar on Monday following the dovish comments from ECB policymakers and President Christine Lagarde.

"At a time when purchasing power is already being squeezed by higher energy and fuel bills, an undue tightening of financing conditions is not desirable, and would represent an unwarranted headwind for the recovery," ECB President Christine Lagarde said on Monday.

Today so far, EURUSD has rebounded slightly as the EURO attempts to recover from the previous session plunge, but the pair’s gains have been limited. At the time of writing, the currency pair trades below 1.1380

Moving ahead, the main attraction for EURO this week, the Eurozone inflation figures on Wednesday. In today’s session, the currency pair will be reacting to the scheduled release of the Eurozone GDP and US retail sales data.

EURUSD Technical Analysis

Technically the overall sentiment remains bearish. However, a fresh demand for EURUSD can be anticipated once the pair rises above the 1.1430 resistance. In this case, the pair could re-test hourly 200-SMA located near 1.1510/15 level. On the other hand, the next immediate support prevails at 1.1350, further breakout of 1.1350 can lead the pair towards 1.1310/00 levels.

Read the full article here - https://gulfbrokers.com/en/eurusd-hit-hard-time-for-a-correction

 

[syamfx2020]

The world’s largest retailer Walmart (NYSE: WMT) kicks off retailers’ earnings week on Tuesday. Walmart is expected to post quarterly earnings of $1.39 per share and revenues are expected to be $135.5 billion.

Meanwhile, Home Depot (NYSE: HD) and Jumia (NYSE: JMIA) also releasing their quarterly results on Tuesday. On Wednesday, the leading retailer Target (NYSE: TGT) is scheduled to report third-quarter results. Other retailers including Macy’s, Inc. (NYSE: M) and Lowe’s (NYSE: LOW) are both scheduled to report earnings on November 18th.

EQUITIES

US stock futures trade flat as investors wait for the release of the US retail sales report. The data is expected to show a 1.2% rise in sales for October. On the other hand, the UK stock trading unchanged after the release of strong UK employment data.

OIL

Crude oil prices slightly retreat from the early session gains amid continuing worries about the spread of the delta variant across several parts of Europe.

CURRENCIES

In the currency market, the British pound surged to a fresh weekly high of 1.3470 on Tuesday boosted by a stronger-than-expected UK employment report. However, considering the recent rebound in the British pound, the US dollar movement will continue to play a vital role in this currency pair's future direction.

GOLD

The precious metal remained in favour as a safe haven due to a dramatic spike in US consumer inflation. Moving ahead to the North American session, the gold traders and investors should closely watch the release of the US retail sales numbers.

Economic Outlook

On the data front, the Reserve Bank of Australia (RBA) released the last meeting minutes on Tuesday. The central bank said that it is prepared to be patient until wage and inflation targets are met, and that a 2024 rate hike is still its central case.

"Given the latest data and forecasts, the central scenario for the economy continued to be consistent with the cash rate remaining at its current level until 2024," the RBA minutes said.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 13.30

US – Industrial production: GMT – 14.15

Coronavirus update:

Worldwide, more than 252 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46.9 million cases and has had more than 760,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

Dollar Index: The greenback currently faces an important resistance area at 95.60/70. On the downside, the immediate support will be the same as last week low 95.25, below which the slide could further get extended towards 94.90 then 94.60.

The important levels to watch for today: Support- 95.25 and 95.00 Resistance- 95.60 and 95.90.

GOLD: Gold price trades steady above $1870. If the bullish momentum continues the next upside levels to watch $1876 and $1880. On the downside, any meaningful pullback now seems to find some support near the $1855 zones, below which the slide could further get extended towards the $1842/40 region.

The important levels to watch for today: Support- 1866 and 1855 Resistance- 1874 and 1880.

Quote of the day- “The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions” – Seth Klarman.

Read more- https://gulfbrokers.com/en/daily-market-report-403

 

[syamfx2020]

Computer graphics card maker Nvidia (NASDAQ: NVDA) is set to announce its third-quarter 2021 financial results today after the markets close. The company is expected to post quarterly earnings of $1.11 per share and revenues are expected to be $6.82 billion. Nvidia stock rallied more than 130% in 2021 and it reached the all-time high of $323 on Nov 9.

Recently NVIDIA has revealed Omniverse Avatar, which is a technology platform for generating interactive AI avatars. “Omniverse Avatar combines Nvidia's foundational graphics, simulation technologies, and AI to create some of the most complex real-time applications ever created. The usage scenarios in collaborative robots and virtual assistants are incredible and powerful” Nvidia CEO, Jensen Huang said during the presentation.

EQUITIES

US stock futures slightly retreat from the previous session highs. On Tuesday, Wall Street climb toward near the record high following the release of stronger-than-expected US retail sales data. U.S. retail sales rose 1.7% in October, topping consensus expectations of a 1.4% rise.

OIL

Crude oil prices remained under pressure driven by the strong U.S. dollar along with concern over increasing U.S. inflation, and a large build in US oil inventories. On Tuesday, the API data showed, the US crude inventories rose by 655,000 barrels, compared with market forecasts of 1.4 million barrels.

CURRENCIES

In the currency market, the EUR/USD has been driven down since last week mostly by the surging dollar, which is expected to remain strong in the near-term as the inflation will stay high for longer than expected which could force the Fed to tighten soon.

GOLD

The precious metal recovered from the early session losses. On Tuesday, the metal fell more than 20$ weighed down by a stronger dollar. At the time of writing, the gold price hovers near the session high of $1859.

Economic Outlook

On the data front, the UK reported higher-than-expected inflation figures. The Office for National Statistics said the annual inflation rose to 4.2% in October, up from 3.1% in September.

Moving ahead today, the important events to watch:

US – Building permits: GMT – 13.30

Canada – CPI: GMT – 13.30

Coronavirus update:

Worldwide, more than 252 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46.9 million cases and has had more than 760,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: Technically the overall momentum remains bearish, the immediate support for the Euro stands near the level of 1.1260. On the flip side, the first resistance at 1.1350 any break above this level will open 1.1390 minimum.

The important levels to watch for today: Support- 1.1300 and 1.1260 Resistance- 1.1350 and 1.1390.

GOLD: The precious metal rebounded back to near the $1860 area. if the bullish momentum continues the next upside levels to watch the $1870 and $1875 zone. On the flip side, the immediate support at $1850 followed by $1842.

The important levels to watch for today: Support- 1850 and 1842 Resistance- 1870 and 1875.

Quote of the day- The market does not beat them. They beat themselves because though they have brains, they cannot sit tight - Jesse Lauriston Livermore.

Read more- https://gulfbrokers.com/en/daily-market-report-404

 

[syamfx2020]

Chinese e-commerce giant Alibaba (NYSE: BABA) is set to report financial results for the quarter ended September 30, 2021, before the U.S. market opens today. The company is expected to post quarterly earnings of $1.93 per share and revenues are expected to be $32.07 billion.

During the last quarter, Alibaba earnings per share beat analyst expectations while the revenue missed estimates. The company revenue for the last quarter climbed 34% year-on-year to RMB 205.7 billion (US$31.8 billion).

$BABA key technical levels to watch today:

Support: $158 and $154

Resistance: $172 and $183

EQUITIES

Global stocks and US stock futures trading lower on Thursday as investors remain concerned about the new wave of COVID-19 infections in Europe. On Wednesday, Wall Street ended lower driven by dovish comments from US FED policymakers.

OIL

Crude oil prices fell to a new weekly low over escalating concerns about weakening demand due to a new wave of coronavirus infections across Europe. Meanwhile, the EIA inventory data showed the US crude inventories fell by 2.1 million in the latest week, compared to forecasts of a 1.398 million increase.

CURRENCIES

In the currency market, the commodity currencies Canadian, Australian, and New Zealand weakened against the US dollar after a heavy sell-off in crude oil prices. On the other hand, the British pound is trading steady against the US dollar.

GOLD

The precious metal holding the previous session highs as the investors waiting for the latest comments from Federal Reserve members. Recently Federal Reserve Bank President James Bullard said, “If inflation happens to go away, we are in great shape for that. If inflation doesn’t go away as quickly as many are currently anticipating it is going to be up to the Federal Open Market Committee (FOMC) to keep inflation under control,”

Economic Outlook

On the data front, US building permits surged up by 4% to an annual rate of 1.650 million in October while the Housing starts fell 0.7% mom to an annualized rate of 1.52 million in October.

Moving ahead today, the important events to watch:

US –Jobless claims: GMT – 13.30

US – Philly fed manufacturing index: GMT – 13.30

Coronavirus update:

Worldwide, more than 252 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46.9 million cases and has had more than 762,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

Dollar Index: The index slightly retreats from a 16-month high. Moving ahead to the North American session, the USD traders should closely monitor the release of U.S. weekly jobless claims data.

The important levels to watch for today: Support- 95.40 and 95.00 Resistance- 95.80 and 96.00.

GOLD: The precious metal trades above $1865. Overall, the momentum remained bullish throughout today. The important levels to watch today $1850 and $1875.

The important levels to watch for today: Support- 1860 and 1850 Resistance- 1870 and 1875.

Quote of the day- "The longer you’re not taking action the more money you’re losing." – Carrie Wilkerson.

Read more- https://gulfbrokers.com/en/daily-market-report-405

 

[syamfx2020]

UK retail sales rose more than expected 0.8% percent in October, compared to the market expectation of a 0.5% increase. The British pound trading near the weekly high following the release of strong data.

EQUITIES

US stock futures recovered from the previous session losses boosted by stronger than expected earnings results from the leading retailer's Kohl's and Macy's.

OIL

Crude oil prices rebounded but post weekly loss. The oil prices plunged early this week driven by concerns over the resurgence of Covid in Europe.

CURRENCIES

In the currency market, the Canadian dollar slightly retreats from the previous session supported by the oil price recovery. Moving ahead to the North American session, the CAD traders should closely monitor the release of Canadian Retail Sales data.

GOLD

The safe-haven metal struggling to find the direction. Overall, the momentum remains bullish throughout this month as inflation pressures persist.

Economic Outlook

On the data front, the US weekly jobless claims came higher than the market estimates. Meanwhile, jobless claims dipped by 1,000 last week from the week before, the Labor Department reported Thursday. On the other hand, the November Philadelphia Fed manufacturing index rose to 39.0 in November from 23.8 in October.

Moving ahead today, the important events to watch:

US –Building permits: GMT – 13.30

Canada – Retail Sales: GMT – 13.30

Coronavirus update:

Worldwide, more than 255 million people have been confirmed infected and more than 5.1 million have died. The United States has confirmed over 46.9 million cases and has had more than 765,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

GBPUSD: The British pound holding the early session gains. If the bullish momentum continues the next upside levels to watch 1.3530 and 1.3570. On the downside, the immediate support is around 1.3460.

The important levels to watch for today: Support- 1.3460 and 1.3420 Resistance- 1.3530 and 1.3570.

GOLD: The yellow metal retreats after it failed to hold above the key resistance area $1870. On the downside, the key important levels to watch today $1850 and $1842.

The important levels to watch for today: Support- 1850 and 1842 Resistance- 1866 and 1872.

Quote of the day- “I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have” – Paul Tudor Jones.

Read more- https://gulfbrokers.com/en/daily-market-report-406

 

[syamfx2020]

China-based electric car maker XPeng (NYSE: XPEV) is scheduled to report third-quarter 2021 earnings before U.S. markets open on Tuesday, November 23. The company is expected to post quarterly earnings of -$0.33 per share and revenues are expected to be $820 million.

Investors expect that XPeng had a good quarter as the company has already released its delivery numbers. The company delivered 25,666 vehicles in the third quarter, up 48% from the second quarter and 199% from the same period last year.

Most recently, XPeng announced the sixth generation of its flying car, and the company also unveiled the XPeng G 9, its fourth electric model. XPeng G9 uses XPower 3.0 power system with 800V SiC platform, capable of running 200km after just 5 minutes of charging.

$XPEV Technical analysis

On the daily time frame, the $XPEV is currently supported at $43.80 and the resistance is above $50.00. The stock climbed more than 30% in October. On the upper side, $50 remains the key resistance area to watch. If the stock break and close above $50, the next level to watch $60 and then the crucial resistance area $74. On the downside, any meaningful pullback now seems to find some support near the $43.80 zones, below which the slide could further get extended towards the $38 and $34 regions.

Read more- https://gulfbrokers.com/en/xpeng-q3-earnings-heres-what-you-need-to-know

 

[syamfx2020]

Global markets seem to be set for another week of panic over the spreading coronavirus. Meanwhile, trading volume is likely to be light after Wednesday as U.S. stock markets will be closed on Thursday for Thanksgiving and open a half-day on Friday. The main event in the calendar for monetary policy this week is the meeting of the Reserve Bank of New Zealand on Wednesday. However, the latest updates from countries seriously affected by the coronavirus is likely to remain front and centre over the next few days.

On the earnings front, the companies due to release their results will be the China-based electric car maker XPeng (NYSE: XPEV), video conferencing company Zoom Video Communications (NASDAQ: ZM), and computer makers HP (NYSE: HPQ) and Dell ( NYSE: DELL) will be among those reporting earnings this week.

GOLD

Gold’s losses against the dollar on Friday but the overall sentiment lacked any clear direction since the start of last week. While the overall momentum remained bullish throughout this month as investors bought it to hedge against rising inflation.

This week, the key resistance for gold is located above $1870, a break above this level will confirm a possible move to $1878/90. On the downside, if the metal loses the $1732 handle, then we expect a move toward $1824/15.

DOLLAR INDEX

The US dollar has made huge gains against most currencies last week driven by the worries about a slowing global economy. In addition to virus fears, demand for the US dollar remained supported by another increase in US inflation numbers.

This week, the first resistance is located for DXY around 96.40, a break above this level will confirm a possible move to 96.65/97.00. On the downside, any meaningful pullback now seems to find some support near the 95.50 zones, below which the slide could further get extended towards the 95.25/00 region.

EURUSD

The US Dollar is showed fractional gains against the eurozone currency as Investors are concerned by the escalation in the number of new cases across Europe. During the last week, the pair plunged to $1.1250, its lowest since June 2020.

Technically the current price action signals suggest that a long term bearish trend remains intact. For this week, the immediate support for the Euro stands near 1.1250 followed by 1.1210. On the flip side, the first resistance at 1.1330 any break above this level will open 1.1370/1.14 minimum.

DOW JONES

Major stock indices and Dow jones continued to slide lower last week as the global trend as the risk-off mood dominates.

For this week, 35,500 remains the key support area to watch, any break below this level will open 35,300/180 minimum. On the upper side, If the index regains upside momentum and press back above 36,000 then the key resistance area to watch is 36,200/330.

Read more- https://gulfbrokers.com/en/global-markets-thanksgiving-week-outlook

 

[syamfx2020]

UK, Eurozone, and Germany Purchasing Managers Index (PMI) posted better than expected readings on Tuesday. Moving ahead to the North American session, the US will release the latest manufacturing PMI numbers.

• UK manufacturing PMI – Actual: 58.2 Forecast: 56.3 Previous: 57.8
• UK Services PMI – Actual: 58.6 Forecast: 54.6 Previous: 59.1
• German manufacturing PMI - Actual: 57.6 Forecast: 56.9 Previous: 57.8
• German Services PMI – Actual: 53.4 Forecast: 51.5 Previous: 52.4
• Eurozone manufacturing PMI - Actual: 58.6 Forecast: 57.3 Previous: 58.3
• Eurozone Services PMI – Actual: 56.6 Forecast: 53.5 Previous: 54.6

EQUITIES

European shares and US stock futures slightly recovered from the early session lows supported by upbeat economic data. On the other hand, the key focus shifts to Wednesday’s FOMC meeting minutes. Market participants will look for fresh clues regarding next year rate hike.

OIL

Crude oil prices will likely remain under heavy selling pressure on concerns around fresh Covid-19 curbs in Europe. Moving ahead, the oil investors waiting for the release of API and EIA inventory data.

CURRENCIES

In the currency market, the US dollar remains in favour as a safe haven currency owing to the high level of uncertainty in financial markets. EURO plunged to its weakest level since June 2020, the currency affected by Eurozone growth concerns and dovish ECB expectations.

GOLD

Gold price dips to a three-week low as the dollar extends gains. The safe-haven metal may continue to lose ground, as early signs of bearish reversal have emerged on the weekly chart.

Economic Outlook

On the data front, retail sales in New Zealand dropped 8.1 percent on quarter in the three months to September of 2021, following a 3.3 percent increase in the previous period.

Coronavirus update:

Worldwide, more than 257 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 46.9 million cases and has had more than 765,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: The currency pair struggling to find the upside momentum following the release of strong PMI data. The immediate support sitting around 1.1210 and 1.1180. On the other side, a break above 1.1330 will open 1.1370 and 1.1400.

The important levels to watch for today: Support- 1.1235 and 1.1210 Resistance- 1.1290 and 1.1320.

GOLD: Gold prices remain under pressure as risk sentiment improved. At the time of writing, the metal trades below the $1800 psychological level. The next key support area to watch is $1790/85.

The important levels to watch for today: Support- 1790 and 1787 Resistance- 1805 and 1812.

Quote of the day- Volatility is greatest at turning points, diminishing as a new trend becomes established – George Soros.

Read more - https://gulfbrokers.com/en/daily-market-report-407

 

[syamfx2020]

Breaking: EURUSD tumbled to the lowest since June 2020 after the German business climate index declined from 97.7 in Oct, to 96.5 in Nov.

However, the pair is trading near the critical demand zone on the weekly time frame. Watch for a reaction from this zone.