Daily Market Report by GulfBrokers 2020-2021

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Shares of enterprise software company Oracle (NYSE: ORCL) rose more than 10% in extended trading on Thursday after the company reported better-than-expected last quarter financial results. Oracle shares climbed 38% in 2021.

  • Earnings per share (EPS): $1.21 vs. $1.11 expected
  • Revenue: $10.36 billion vs. $10.21 billion expected
"These strong results are being driven by the 22% growth of our infrastructure and applications cloud businesses which are approaching $11 billion in annualized revenue," Oracle CEO, Safra Catz said.

EQUITIES

UK shares trade negative after the release of weaker-than-expected UK macro-economic data. Meanwhile, European stocks traded higher on Friday, alongside US Futures.

OIL

Crude oil prices slightly retreat from the early weekly gains after the latest news showed that the Omicron variant is 4.2 times more transmissible than the delta variant. The bearish sentiment is also driven by weak EIA inventory data.

CURRENCIES

In the currency market, the US dollar was trading flat against other major currencies during the early part of Friday’s session, focus shifts to US inflation data. The British pound remains under pressure following the release of weak UK GDP data.

GOLD

The precious metal is still suffering against the strength of the greenback with the price unable to rebound. However, today could see increased volatility spikes after the release of the US CPI report.

Economic Outlook

On the data front, GDP grew by just 0.1% in October, much weaker than the 0.4% which economists had expected. On the other hand, UK Industrial production in the UK edged down by 0.6% over a month in October.

Moving ahead today, the important events to watch:

US – CPI: GMT – 13.30

US – Michigan consumer sentiment: GMT – 15.00

Coronavirus update:

Worldwide, more than 267 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 49 million cases and has had more than 791,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

Read more - https://gulfbrokers.com/en/daily-market-report-415
 
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Global equities and oil prices rallied last week. As we progressed through the last month of the year, Investors are gearing up for another busy week with the same dominant themes amid a busy economic calendar. Investors will continue to monitor guidance and comments coming from central banks of major economies about the rising inflation. A series of central bank meetings including the UK, US, Japan and Europe are scheduled across the week. Other key figures this week include Eurozone inflation and US retail sales, UK employment data and CPI.

On the earnings front, the companies due to release their results will be the Digital media and marketing software firm Adobe (NASDAQ: ADBE) and the world's biggest package delivery group FedEx (NYSE: FDX) will be among those reporting earnings this week.

GOLD

The safe-haven metal continues to swing between losses and gains across last week. As the greenback gathers strength, the metal is struggling to firm to the upside despite the economic uncertainties. This week, the main drivers for the precious metal remain the higher inflation and the movement of the US dollar.

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For this week, the immediate support will be the same as last week low $1769, below which the slide could further get extended towards $1755 then $1745/40. On the flip side, the immediate resistance is seen at $1796 any break above this level will open $1810/15 minimum.

DOLLAR INDEX

The greenback ended higher last week. While momentum on the upside has slowed down, the market breadth remains intact and there is no indication of profit booking or reversal emerging from the highs. The Index is expected to be extra volatile on Wednesday after the FOMC meeting and the USD traders also strongly waiting for the comments on inflation and interest rates from FED chairman Jerome Powell.

DXY


This week the resistance for DXY is around 96.70, any break over targets 96.95/97.20. On the downside, any meaningful pullback now seems to find some support near the 95.75 zones, below which the slide could further get extended towards the 95.50/95.00 region.

EURUSD

The euro has continued to move downward over the last week against trade-sensitive and ‘risk on’ currencies like the Aussie dollar and Canadian dollar. This week, the ECB’s meeting and press conference on Thursday is likely to have a significant effect on the currency pair after the spread of the Omicron coronavirus variant across Europe.

eurusd


For Euro, the first nearest support level is located at 1.1250. In case if it breaks below this level, it will head towards the next support level which is located at near 1.1230 then 1.1200. On the upside, 1.1345 will act as an immediate and strong hurdle while 1.1380 will be a critical resistance zone because above this, bulls are likely to dominate.

DOW JONES

Read more- https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-16
 
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Shares of the Detroit-based auto giant Ford (NYSE: F) shares have enjoyed strong demand thanks largely to its electric vehicle surge. The stock climbed to a 52-week high on Friday. Ford shares have added more than 130% since the beginning of this year and the company now has a market cap of $85 billion.

On Friday, the stock surged another 10% and closed above $21 after Ford confirmed that the 2022 F-150 Lightning has reached its reservation cap. “As we prepare to make history together, we’ve closed reservations so we can start accepting orders. The F-150 Lightning, with a range that starts at 230 miles, is the most highly anticipated F-Series pickup in years. The pickup is equipped with a 432-horsepower twin-engine unit, and the range of this version is 370 KM.

"We're completely oversubscribed with our battery-electric vehicles, Lightning especially," Ford CEO Jim Farley told to CNBC on Thursday.

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Ford has decided to double its EV output to 600,000 electric vehicles per year by the end of 2023. Ford is also pushing forward with SK Innovation to build three new battery factories in the United States. Furthermore, Ford is expected to ramp up the production of the popular Mustang Mach-E.

“It’s hard to produce Mustang Mach-Es fast enough to meet the incredible demand, but we are sure going to try. So, starting in 2022 we are increasing production and expect to reach 200,000+ units per year for North America & Europe by 2023’ - Ford CEO Jim Farley said.

Ford Q3 earnings review

Ford Motors announced Q3 results on 27th October 2021. The company reported better-than-expected financial results. Ford’s Earnings for the last quarter showed revenue at $33.21 billion, versus analysts’ estimates of $32.54 billion. Earnings per share (EPS) came in at 51 cents, which beat the 27 cents per share that was expected.

Ford (NYSE: F) short-term technical outlook

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Technically the overall momentum remains bullish throughout the last couple of months. Recently, the stock crossed $20 dollars for the first time since 2001. In the short term, if the stock holds above $20 the next upside target at $22.80 and $23.70. On the other side, if the price break and close below $20, the next immediate support is to watch $18.60 and then $16.50.

Trading is risky and your entire investment may be at risk. Please ensure that you fully understand the risks involved.

Read more- https://gulfbrokers.com/en/auto-stock-ford-enjoys-the-strong-gains
 
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Global shares and oil prices tanked on Monday caused by the fast-spreading Covid Omicron variant, which is forcing a re-evaluation of the economic recovery. According to WHO, the new variant has been reported in more than 63 countries. On Monday, UK Prime Minister Boris Johnson confirmed the UK’s first death from the Omicron variant of coronavirus.

Norway has announced new COVID-19 curbs on Monday as its struggles to contain the Omicron variant. So far, the country had detected 958 Omicron infections. China also reported the first case of Omicron variant of coronavirus in Tianjin city in north China.

Coronavirus update: Worldwide, more than 270 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 50 million cases and has had more than 796,000 deaths from COVID-19, the highest totals in the world.

EQUITIES

Global stocks began the week with a bearish tone on Monday. Wall Street ended lower on Monday weighed down by declines in tech and travel stocks. On the other hand, the current growing fears sparked by faster inflation continue to prompt investors to take some profits.

OIL

Crude oil prices ended lower on Monday driven by the uncertainty surrounding Omicron and its potential threat to the economic recovery.

CURRENCIES

In the currency market, the US dollar started this week on a positive note as the investors are waiting for the Federal Reserve’s meeting this week. Overall, the momentum remains bullish throughout the previous session. At the time of writing, the US dollar index trading above 96.40.

GOLD

The precious metal holding the early session gains as the traders anticipating the US Federal Reserve is likely to accelerate its tapering program when the FOMC concludes its meeting on Wednesday.

Economic Outlook

On the data front, the UK reported a better-than-expected employment report. The unemployment rate declined to 4.2% in the three months to October and the number of people claiming jobless benefits showed a drop of 49.8K in November.

Technical Outlook

Dolla Index:
The index hovers near the resistance zone of 96.45. Any break above the level is the next upside level to watch 96.60. On the flip side, the immediate support is at 96.30.

DXY


The important levels to watch for today: Support- 96.30 and 96.00 Resistance- 96.45 and 96.60.

GOLD: The bearish trend of the last few days is losing strength, but a proper inversion would require a solid recovery of $1,796. In this case, we can see the next resistances placed at $1,810 and $1,815 minimum.

gold neww


The important levels to watch for today: Support- 1780 and 1776 Resistance- 1788 and 1795.

Quote of the day - “The majority of short-term trading results are just random. In the long term, the money ends up with those that can trade and manage risk.”

Read more- https://gulfbrokers.com/en/daily-market-report-416
 
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The Federal Reserve will wrap up its two-day policy meeting later Wednesday with a statement at 19:00 PM GMT and a press conference with Chairman Jerome Powell 30 minutes later. Two weeks ago, Federal Reserve Chairman Jerome Powell surprised investors by saying that policymakers will be discussing a quicker reduction in asset purchases and therefore an earlier rate hike.

EQUITIES

Asian shares traded lower following the release of weak Chinese macroeconomic data. The retail sales fell to 3.9% in Nov, after climbing 4.9% in Oct. Meanwhile, the US stock futures remain unchanged as the inventors anxiously awaiting the Federal Reserve decision.

OIL

Crude oil futures extend decline on weak API inventory data. The bearish pressure is also driven by the dovish comments from IEA. The IEA said on Tuesday that a surge in Covid-19 cases with the emergence of the omicron variant will dent global demand.

CURRENCIES

In the currency market, the British pound slightly rebounded after the release of the UK inflation report. However, the overall momentum remains mixed as the UK experiencing a steady uptick in fresh coronavirus cases due to the Omicron variant.

GOLD

The precious metal hovers near the 3- month lows on Wednesday. The metal is expected to be extra volatile today after the FOMC decision. The expected trading range for gold today is between 1740 support and 1820 resistance.

Economic Outlook

On the data front, US PPI increased by 0.8% in November, above the expectation of 0.6%. The Core PPI for November also rose, coming in at 0.7%, against the predicted 0.4%.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 13.30

US – EIA crude inventories: GMT – 15.30

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

Coronavirus update:

Worldwide, more than 269 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 49 million cases and has had more than 796,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD:
For Euro, the first nearest support level is located at 1.1250. In case if it breaks below this level, it will head towards the next support level which is located at near 1.1230 then 1.1200. On the upside, 1.1345 will act as an immediate resistance, any break above this level will open 1.1380/ 1.1420 minimum

eurusd


The important levels to watch for today: Support- 1.1250 and 1.1220 Resistance- 1.1340 and 1.1380.

GOLD: For today the first support for the Gold appears to be around $1765, in the short-term any break below $1765 the next downside level is to watch $1760/55. On the other upper side, the immediate resistance around $1776 any break and close above this level will open $1782 then $1788.

gold neww


The important levels to watch for today: Support- 1765 and 1760 Resistance- 1776 and 1782.

Quote of the day - “It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” – Charlie Munger.

Read more - https://gulfbrokers.com/en/daily-market-report-417
 
Technically the overall trend still looks bearish after the last session selling pressure. However, the bears need to see a confirmed break below the crucial support of $1760 for further downside. On the flip side, the first resistance is located for the metal around $1785, a break above $1795 will confirm a possible move to $1804/15.

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After the Federal Reserve’s taper announcement, the focus shifted to the Bank of England interest rate decision at 12.00 PM GMT. The central bank will decide today whether to hike interest rates as inflation in the UK hits a ten year high of 5.1%. In November’s Monetary Policy Report, the BOE said that ‘it will be necessary over coming months to increase the Bank Rate in order to return CPI inflation sustainably to the 2% target.’

On Wednesday, the US Federal Reserve said it will withdraw its monthly bond purchases at twice the pace it previously announced and likely end them in March.

“We are phasing out our purchases more rapidly because with elevated inflation pressures in a rapidly strengthening labour market, the economy no longer needs increasing amounts of policy support,” FED chair Powell said.

EQUITIES

European markets opened higher on Thursday, following the bullish tone on both Asian markets and US futures overnight. US stock futures remain volatile as the markets are unsettled by swings in volatility caused by the Federal Reserve issued its policy statement.

OIL

Crude oil futures edge up after the Fed confirmed their hawkish turn and signaled, they are positioning themselves to tackle inflation in the second quarter.

CURRENCIES

In the currency market, the safe-haven US dollar is retreating versus other major currencies, such as the euro and New Zealand dollar. The pound is gaining ground on both the dollar and the euro during early Thursday trading ahead of the BOE decision.

GOLD

The precious metal recovered from the previous session losses and trades near the session high boosted by the weaker US dollar. At the time of writing, the metal trades above $1785.

Economic Outlook

On the data front, Australia’s unemployment rate declined to 4.6% in November from 5.2% a month earlier and below market estimates of 5%. On the other hand, New Zealand's gross domestic product shrank 3.7% in the third quarter from the previous quarter.

Moving ahead today, the important events to watch:

US – BOE interest rate decision: GMT – 12.00

US – ECB interest rate decision and statement: GMT – 12.45

US – Building permits: GMT – 13.30

Coronavirus update:

Worldwide, more than 270 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 49 million cases and has had more than 796,500 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD:
The currency pair holding the early gains as the traders and investors wait to hear from the ECB President Christine Lagarde, to try and understand if the US central bank is considering any tapering and how the ECB responds to higher inflation.

eurusd


The important levels to watch for today: Support- 1.1250 and 1.1220 Resistance- 1.1350 and 1.1385.

GOLD: For today, the gold price is supported at $1765. On the upper side, the immediate resistance is around $1795 any break above this level will open 1804/10.

gold neww


The important levels to watch for today: Support- 1776 and 1768 Resistance- 1788 and 1795.

Quote of the day - “More money has been lost trying to anticipate and protect from corrections than actually in them.” Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-418
 
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Gold price and Japanese yen extend gains on Friday as Investors will continue to favor traditional safe-haven assets. The fresh spikes in Omicron coronavirus infections lifted gold price above $1,800 an ounce. The Japanese yen holding the gains against the US dollar and Euro after the Bank of Japan decided to taper its corporate debt purchases to pre-pandemic levels.

EQUITIES

Wall Street finished a little lower on Thursday dragged down by tech stocks and weaker-than-expected US weekly jobless claims data. The US weekly claims rose by 18,000 from the previous week’s revised total of 188,000. On Friday, UK stocks traded higher boosted by strong retail sales figures.

OIL

Crude oil prices struggling to find the upside momentum. Oil futures trade lower on Friday dragged down by mixed inventory data and the continuous spread of the COVID-19 omicron variant.

CURRENCIES

In the currency market, the British pound slightly retreats from the previous session highs. The currency pair hits the highest levels seen since late November after the Bank of England increased its key policy rate by 15bps to 0.25%.

GOLD

The precious metal trading steady above the $1800 psychological level on Friday, weak economic data and uncertainty over the economic recovery have sparked risk-averse sentiment in the market.

Economic Outlook

On the data front, UK retail sales have printed better than expected, rising by 1.4% against 0.8% forecasts in November. German Ifo Business Climate fell to 94.7 in December of 2021, compared to the market expectations of 95.3.

Coronavirus update:

Worldwide, more than 270 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 49 million cases and has had more than 796,500 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD:
The currency pair remains unchanged following the release of weak German IFO business climate data. At the time of writing, the currency pair trades above 1.1330.

eurusd


The important levels to watch for today: Support- 1.1300 and 1.1280 Resistance- 1.1360 and 1.1390.

GOLD: For today, the resistance for Gold is around 1810, any break over target 1815 then 1820. On the other side, the immediate support near 1800 and any break will drag the metal to 1794/86 levels.

gold neww


The important levels to watch for today: Support- 1800 and 1794 Resistance- 1810 and 1815.

Quote of the day - “To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks” - Benjamin Graham.

Read more- https://gulfbrokers.com/en/daily-market-report-419
 
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