Daily Market Report by GulfBrokers 2020-2021

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Crude oil prices started the new week slightly higher. During the last week, the oil prices ended lower after larger-than-expected crude oil inventory builds in the US. Both API and EIA inventory data showed that crude stockpiles in the US increased by 2.6 and 4.351 million barrels in the week ended January 15th.

EQUITIES

European stocks trading mixed on Monday on worries about the rising number of coronavirus cases around the world while both Chinese and Japan shares climbed to the new session highs.

On the earnings front, it’s a busy week ahead. On Wall Street, Tesla joins with other big tech companies including Apple, Microsoft, and Facebook. In the UK, the budget airlines Wizz Air and Easy jet is also scheduled to announce its quarterly results on Thursday.

OIL

Crude oil prices slightly rebounded from the previous week lows supported by the weaker dollar. Moving ahead, this week the investors should closely watch the US inventory reports and the FOMC decision.

CURRENCIES

In the currency market, the Australian dollar traded strongly during the Asian session after Australia’s medical regulator has approved the use of The Pfizer/BioNTech vaccine. The country's first batch of the Pfizer vaccine is due to arrive in February.

GOLD

The gold price trading unchanged on Monday. During the European session, the safe-haven metal trading above $1855 supported by the downbeat German IFO data and mounting fears over COVID-19 social restrictions.

Economic Outlook

On the data front, the Ifo Business Climate indicator for Germany fell to 90.1 in January compared to 92.2 in the previous month.

This week the main highlights of the economic calendar will be the release of the Fed's monetary policy decision and US GDP, UK and Germany employment report.

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 99 million. The United States has reported 25 million confirmed cases and has had more than 417,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair retreated from the highs after weaker-than-expected German economic data.
eurusd


The important levels to watch for today: Support- 1.2130 and 1.2100 Resistance- 1.2190 and 1.2220.



GOLD: The gold price struggling to find the upside momentum. Overall, the momentum remained bearish throughout this month.

gold neww


The important levels to watch for today: Support- 1848 and 1836 Resistance- 1865 and 1875.

Quote of the day: I am not better than the next trader, just quicker at admitting my mistakes and moving on to the next opportunity – George Soros.

Read more- https://gulfbrokers.com/en/daily-market-report-245
 
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Wall Street closed lower on Monday as investors remained cautious about the ever-increasing coronavirus cases. Moving ahead, this week the main attention will be on the Q4 earnings season. Tesla, Apple, Facebook, Microsoft, and Boeing are among the big giants to report this week. Apple and Tesla shares surged to a fresh all-time high on Monday while Microsoft stock shy to break the previous 52-week high ahead of the reports.

During the last week, several tech firms including IBM and INTEL reported mixed earnings results. While the entertainment giant Netflix again surprised the investors with strong Subscribers numbers and the company revenue increased 21%, to $6.6 billion.

This week the big tech firms include Apple, Facebook, Microsoft, AMD, and Honeywell all report quarterly earnings. Microsoft (NASDAQ: MSFT) kicks off tech earnings on Tuesday and $MSFT stock closed 1.5% higher on Monday. On Wednesday, along with Facebook (NASDAQ: FB), the tech giant Apple Inc. (NASDAQ: AAPL) is scheduled to report fourth-quarter results.

On the other hand, Tesla (NASDAQ: TSLA) also will report the Q4 financial results on Wednesday, Jan 27. The automaker reported its fifth consecutive quarterly profit on October 22, 2020, with revenue of US$8.8 billion. Tesla shares trading extra volatile ahead of the announcement. The stock climbed to a fresh all-time high of $900 and closed 4% higher on Monday.

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There are few other major companies also reporting quarterly results this week


Advanced Micro Devices (NASDAQ: AMD) - after market close on Tuesday


Boeing Co (NYSE: BA) - before the markets open on Wednesday


Abbott Laboratories (NYSE: ABT) - before the markets open on Wednesday


McDonald’s Corp (NYSE: MCD) - before the markets open on Thursday


Mastercard NYSE: MA - before the markets open on Thursday


Visa Inc (NYSE: V) - after market close on Thursday


Caterpillar Inc. NYSE: CAT - before the markets open on Friday


Read more- https://gulfbrokers.com/en/big-week-for-q4-earnings-tsla-appl-msft-fb
 
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American Biotechnology firm, Moderna (NASDAQ: MRNA) shares closed more than 12% higher on Monday after the company said it believes its COVID-19 vaccine protects against new variants found in Britain and South Africa. The company will publish data from its tests against the South African and UK variants on the website bioRxiv.

EQUITIES

Asian shares ended lower on Tuesday after rising tensions between the U.S.-China in the South China Sea. China said on Tuesday it will conduct military exercises in the South China Sea this week. Meanwhile, the Wall Street ended mixed on Monday on U.S. stimulus package uncertainty.

On the US earnings front, Johnson & Johnson (NYSE: JNJ) and American Express (NYSE: AXP) reporting earnings today before the bell while Microsoft (NASDAQ: MSFT) and Advanced Micro Devices (NASDAQ: AMD) is scheduled to report results after the market close.

OIL

Crude oil prices trading steady on Tuesday despite uncertainty over US stimulus. On Monday, Republicans have raised some objections on the expensive price tag of a $1.9 trillion proposed stimulus package.

CURRENCIES

In the currency market, the EURO fell to a fresh weekly low of 1.2107 on Tuesday. Overall, the currency pair remains bearish from yesterday after Germany IFO Business Climate in January fell from 92.2 to 90.1 points.

GOLD

The gold price retreated from the previous session highs after the dollar index rose for the 3rd consecutive session. During the previous session, the safe-haven metal surge to above $1865 lifted by the hopes for a stimulus plan.

Economic Outlook

On the data front, the UK unemployment rate came at 5%, slightly lower than forecasts of 5.1%. While the number of people claiming jobless benefits rose by 7K in December, against expectations +35K.

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 99.3 million and 2.1 million people have died. The United States has confirmed over 25.2 million cases and has had more than 420,830 deaths from COVID-19, the highest totals in the world. On the positive side, the number of coronavirus deaths and cases per day in the US has dropped markedly over the past couple of weeks.

Technical Outlook

EUR/USD:
The currency pair slightly rebounded from the early session lows. At the time of writing, the pair trades above 1.2130.

eurusd


The important levels to watch for today: Support- 1.2100 and 1.2070 Resistance- 1.2160 and 1.2190.

GOLD: The gold price hovers near the $1850 support area ahead of US consumer confidence data. Overall, the momentum remains bearish throughout the European session.

gold neww


The important levels to watch for today: Support- 1848 and 1836 Resistance- 1866 and 1875.

Quote of the day: Money management is the only strategy to survive in this crazy, stupid and doped financial world market- William C. Brown.

Read more- https://gulfbrokers.com/en/daily-market-report-246
 
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The tech giant Microsoft released last quarter financial results on Wednesday after the market close. Microsoft (NASDAQ: MSFT) shares climbed more than 3% in the after-hours trading and hits a new all-time high after the company’s financial Q2 results exceeded Wall Street estimates. During the last quarter, the company Revenue is up 17%, and net income has increased by 33%
  • Earnings per share (EPS) $2.03 vs. $1.64 expected
  • Revenue $43.1 billion vs. $40.12 billion expected
“What we have witnessed over the past year is the dawn of the second wave of the digital transformation sweeping every company and every industry,” Microsoft CEO Satya Nadella said.

EQUITIES

US futures trading lower on Wednesday. During the previous session, Wall Street ended lower as investors remain concerned about rising coronavirus infections.

On the US earnings front, Boeing (NYSE: BA), AT&T (NYSE: T) and Abbott Laboratories (NYSE: ABT) reporting earnings today before the bell while Tesla (NASDAQ: TSLA), Apple (NASDAQ: AAPL) and Facebook (NASDAQ: FB) is scheduled to report results after the market close.

OIL

Crude oil price trading higher on Wednesday supported by API data. The data showed in the US the crude inventories unexpectedly fell by 5.3 million barrels, after a build of 2.56 million barrels the previous week.

CURRENCIES

In the currency market, the Dollar index trading near the strong support area 90/89.80 ahead of Fed’s monetary policy decision due later in the session. Meanwhile, the Australian dollar trading steady boosted by better-than-expected inflation data.

GOLD

The safe-haven metal fell to a fresh weekly low on Thursday after the International Monetary Fund raised its outlook for global economic growth this year to 5.5% from 5.2% projected earlier.

Economic Outlook

On the data front, Australia CPI increased by 0.9% on a quarterly basis – beating forecasts for 0.7% and down from 1.6% in the three months prior. On the other hand, on Tuesday the US released the latest consumer confidence data. The data showed January Conference Board consumer confidence 89.3 points vs 89.0 expected.

Moving ahead today, the important events to watch:

US Durable goods orders – 13.30 GMT

US crude oil inventories– 15.30 GMT

US FOMC Interest rate decision – 19.00 GMT

US FOMC Press Conference – 19.30 GMT

Coronavirus update:

Global coronavirus cases surpassed 100 million on Tuesday. The United States has confirmed over 25.4 million cases and has had more than 424,000 deaths from COVID-19, the highest totals in the world. Meanwhile, US President Joe Biden said Tuesday that he aims to secure an additional 200 million doses of virus vaccines from Pfizer/BioNTech and Moderna by summer.

Technical Outlook

EUR/USD:
The currency pair slips back to below 1.2150. During the previous session, the bulls have been unable to break above 1.2180.

eurusd


The important levels to watch for today: Support- 1.2100 and 1.2070 Resistance- 1.2160 and 1.2190.



GOLD: The precious metal trading remains under pressure. Due to the Fed meeting decision and press conference, we may witness huge volatility in the gold price during the North American session.

gold neww


The important levels to watch for today: Support- 1842 and 1830 Resistance- 1866 and 1875.

Quote of the day: Remind yourself that today is not the last day you will ever have to trade. You have time, the market isn’t going anywhere – Nial Fuller.

Read more- https://gulfbrokers.com/en/daily-market-report-247
 
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