Daily Market Report by GulfBrokers 2020-2021

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Zoom Video Communications (NASDAQ: ZM) shares climbed more than 28% in during pre-market trading on Tuesday after the company reported strong Q2 financial results on Monday after market close. The video-conferencing company made a profit of $186 million on revenue of $663.5 million in the quarter that ended on July 31.

  • Earnings per share (EPS) $.92 vs. $.45 expected
  • Revenue $663.5 million vs. $500.5 million expected

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“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform,” CEO, Eric Yuan said.

Zoom finished its fiscal second quarter with 370,200 customers with at least 10 employees, up from 265,400 at the end of April. Just a year ago, Zoom only had 66,300 customers in that category paying for subscriptions.

The company said it expects revenue in the range of $685 million to $690 million for the fiscal third quarter. CEO Eric Yuan said the company’s revenue forecast for all fiscal 2021 has been upped to a shade less than $2.4 billion, which would be a nearly four-fold improvement over 2020.

Read more- https://gulfbrokers.com/en/zoom-stock-soars-28-after-strong-q2-earnings-report
 
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The Nasdaq Composite rose 1.4% a day after the technology-heavy index closed at a record boosted by technology stocks. Shares of Zoom Video Communications (NASDAQ: ZM) climbed more than 40% on Tuesday after the company reported strong Q2 financial results. Apple stock climbed 3.6% after a report the company had requested suppliers to make at least 75 million 5G iPhones for later this year.

EQUITIES

On Tuesday, Wall Street ended higher boosted after the manufacturing activity in the US registered the sharpest increase in almost two years during August. Meantime, US Treasury Secretary Steven Mnuchin told a congressional panel he was willing to provide more money for state and local governments.

OIL

Crude Oil prices trading higher supported by positive API inventory data, the weekly crude oil inventories fell from previous -4.524M to -6.36M on August 28 supporting the oil market.

CURRENCIES

In the currency market, the EUR/USD fell after the Eurozone consumer price index dropped 0.2% year-on-year versus July's 0.4% rise and upbeat manufacturing data from the US. Meanwhile, the New Zealand dollar climbed to the new session high on Wednesday following an announcement by RBNZ Governor Adrian Orr that the central bank is actively preparing a package of additional monetary policy tools to use if needed.

GOLD

Gold price edged lower after better-than-expected U.S. manufacturing data lifted the dollar back up from its lowest level in about two years.

Economic Outlook

On the data front, the Australian Bureau of Statistics released the Q2 GDP, the gross domestic product economy contracted 7% on quarter in the second quarter of 2020. On the other hand, Germany retail sales dropped 0.9% in July 2020 while the retail sales rose 4.2% YOY in July.

On Tuesday, ISM Manufacturing PMI in the USA in August rose from 54.2 to 56 points, which significantly exceeded the projected 54.5 points.

Moving ahead today, the important events to watch:

US ADP employment report – 12.15 GMT

US crude oil inventories – 14.30 GMT

Coronavirus update:

The U.S. has 6 million confirmed cases and over 183,000 deaths. Globally, there are 25 million cases and more than 851,000 people have died, according to Johns Hopkins University data. Meanwhile, UK-based pharmaceutical company AstraZeneca begins the final phase of the coronavirus (COVID-19) vaccine trials.

Technical Outlook

XAU/USD:
The gold price trading below $1960 during the European session, the next crucial support to watch at $1940.

euraud


The important levels to watch for today: Support- 1950 and 1940 Resistance- 1975 and 1995.



EUR/USD: The currency pair extends slide to below 1.1870 after mixed economic data, during the previous session the pair dropped almost 100 pips from the top after the dollar edged higher from its lowest level.

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The important levels to watch for today: Support- 1.1860 and 1.1830 Resistance- 1.1920 and 1.1960.

Quote of the day: There are a million ways to make money in the markets. The irony is that they are all very difficult to find- Jack D. Schwager.

Read more- https://gulfbrokers.com/en/daily-market-report-158
 
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US futures and global stocks trading higher on Thursday supported by positive economic data from the US and other regions. On the other hand, Donald Trump's top infectious diseases official, Anthony Fauci, on Wednesday told NBC: "I believe that by the time we get to the end of this calendar year that we will feel comfortable that we do have a safe and effective vaccine."

EQUITIES

On Wednesday, Wall Street ended higher. The S&P500 climbed to an all-time high in two months, boosted by Nvidia and Microsoft shares. The stocks also received some support on hopes for a COVID-19 vaccine to come as early as next month in some US states.

OIL

Crude Oil prices ignored the positive EIA oil inventory data and fell to a new weekly low. While EIA reported that US gasoline demand fell to 8.78 million barrels per day last week from 9.16 million bpd a week earlier.

CURRENCIES

In the currency market, the British pound slipped to below 1.33 after Bank of Governor Bailey said that the downside risk to forecasts from the coronavirus outbreak is much bigger than for Brexit and increase prospects for more policy easing. Meanwhile, the Bank of England’s deputy governor, Dave Ramsden, said on Wednesday that the level of British economic output would permanently be about 1.5 percentage points lower than it would be had it not been for the pandemic.

GOLD

Gold price edged lower on Thursday as the U.S. dollar strengthened and positive news about a potential COVID-19 vaccine.

Economic Outlook

On the data front, the US released the latest ADP employment report, the data showed the private sector added 428,000 jobs in August, less than half the 1 million expected by forecasters.

On the US-China front, China is reportedly planning substantial policy changes to its 3rd generation semiconductor industry for the next five years through to 2025, in response to US Secretary of State Mike Pompeo’s announcement of several restrictions over Chinese diplomats in the US.

Moving ahead today, the important events to watch:

US Initial jobless claims – 12.30 GMT

UK BoE’s Governor Bailey Speech – 14.00 GMT

US ISM non-manufacturing PMI – 14.00 GMT

Coronavirus update:

The number of people infected with the coronavirus across the world hit 26.0 million, of which at least 863 thousand people have died and 17.2 million have recovered, according to data released by the Johns Hopkins University. Meanwhile, drugmaker GSK and its French peer Sanofi said they expected the first results on their candidate vaccine by December, and if the data turned out to be positive, they plan to request regulatory approval for the product in the first half of 2021.

Technical Outlook

XAU/USD:
The gold price trading below $1940 during the European session, the yellow metal price dropped to $1927 during the Asian session.

audusd


The important levels to watch for today: Support- 1925 and 1910 Resistance- 1940 and 1955.

EUR/USD: The currency pair slightly reversed from the early session lows after better-than-expected Eurozone and Germany PMI numbers.

cruse


The important levels to watch for today: Support- 1.1800 and 1.1780 Resistance- 1.1860 and 1.1890.

Quote of the day: Look at market fluctuations as your friend rather than your money; profit from folly rather than participate in it – Warren Buffet.


Read more- https://gulfbrokers.com/en/daily-market-report-159
 
Alphabet (NASDAQ: GOOGL) pre-market -1%

$GOOGL shares reached a new 52-week high and closed almost 4% higher on Wednesday after the company announced plans to develop a self-sufficient new town-like tech hub in the Mountain View area.

Novavax (NASDAQ: NVAX) pre-market +6%

The stock surged after the American vaccine company released positive Phase one data for its coronavirus vaccine. The early-stage results showed the Covid_19 vaccine candidate is safe and elicits an immune response.
 
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Wall Street faced their worst day since June on Thursday after U.S. stocks fell sharply, driven by a broad decline in technology firms.

  • The Dow Jones Industrial Average down 3%.
  • S&P 500 lost 3.5%.
  • Nasdaq Composite slide 5% (the largest decline in the last 5 months).
EQUITIES

Global markets trading lower on Friday amid a sharp decline in Wall Street’s overnight. Meanwhile, European markets rebounded on Friday boosted by positive comments from French Finance Minister Bruno Le Maire. On the other hand, the French government unveiled a EUR100 billion ($118.3 billion) stimulus plan to combat the economic impact of the coronavirus crisis over two years.

OIL

Crude Oil prices trading lower on Friday after the recent data from Refinitiv Eikon indicates that crude volumes being imported by China are expected to decline this month after increasing continuously over the past five months. Brent crude fell 0.4%, to $43.88 a barrel heading for its biggest weekly loss since June.

CURRENCIES

In the currency market, the US dollar index (USD) trading steady ahead of the official nonfarm payroll data from the United States. On Thursday, the Canadian dollar and Aussie dollar were among the worst-performing currencies against the USD.

GOLD

Gold price slightly reversed from the previous session lows and trading above $1930 during the European session ahead of NFP data.

Economic Outlook

On the data front, During the European session, the German factory orders reported weaker-than-expected 2.8% in July 2020 after an upwardly revised 28.8% gain in the previous month, and below market forecasts of a 5%.

On Thursday, according to the Bureau of Labour Statistics (BLS), more than 881K Americans signed for initial jobless claims last week, slightly slowing down from the previous value of 1.011M.

Moving ahead today, the important events to watch:

US employment report – 12.30 GMT

CAD employment report – 12.30 GMT

Coronavirus update:

Worldwide, the number of COVID-19 cases reported has surpassed 26 million, the United States has passed 6.1 million confirmed cases, with over 185,000 deaths from COVID-19, the highest numbers in the world. India reports 83,341 new cases in the last 24 hours, marking the second straight day of over 83,000 cases and bringing the country total to more than 3.93 million. New Zealand's Prime Minister Jacinda Ardern says the country's current restrictions to contain the coronavirus pandemic will continue until mid-September.

Technical Outlook

XAU/USD:
The gold price hovers near the $1935 on Friday. On Thursday, the precious metal price dropped to near $1920 during the North American session.

audusd


The important levels to watch for today: Support- 1900 and 1900 Resistance- 1945 and 1965.

EUR/USD: The currency pair trading unchanged during the European session after less-than-expected German factory orders data.

cruse


The important levels to watch for today: Support- 1.1800 and 1.1760 Resistance- 1.1870 and 1.1900.

Quote of the day: Investors should remember that excitement and expenses are their enemies – Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-160
 
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