Daily Market Report by GulfBrokers 2020-2021

Status
Not open for further replies.
shutterstock_1871444239.jpg

Wall Street set to open lower on Tuesday as the uncertainty over US Senate elections continues. On Monday, US stocks ended lower, the S&P 500 and the Dow posted their largest daily percentage falls since late October. Meanwhile, since the US election the Wall Street climbed to record highs lifted by the approval of two COVID-19 vaccines and the passage of a $900 billion relief and stimulus package.

"The Democrats are trying to steal the White House, you cannot let them," Trump said.

The election results will determine whether Republicans or Democrats control power in the U.S. Senate. More than three million Georgians have already voted, over 100,000 of which are new voters who did not participate in November's general election.

Both Democratic candidates hold narrow leads going into the vote Tuesday. At present, Republicans control the Senate 50-48, but a win in both Tuesday's runoff races would give democrats a 50-50 tie with republicans. But if Democrats win both of the runoff races, Vice President-elect Kamala Harris would break the tie.

The market participants anticipating that the Democratic sweep in Georgia could have negative impacts for markets, which includes higher taxes and regulatory changes for health care. On the positive side, Democratic control likely would mean a bigger stimulus package.
 
piggy-bank-1047216 (1) (1).jpg

The Euro broke further above the psychological level of 1.2300 and climbed to a fresh session high of 1.2340 on Wednesday. The recent bullish move lifted by the weaker dollar and better-than-expected economic data from Eurozone and Germany.

EQUITIES

On Tuesday, Wall Street ended slightly higher boosted by the oil and gas stocks. The Dow Jones Industrial Average increased 0.6%, the tech-heavy Nasdaq Composite gained 1% and the S&P 500 added 0.7%. While during the European session on Wednesday the US stock futures trading lower as the traders and investors await the results of two runoff elections in Georgia.

OIL

Crude oil price climbed to the highest level since February after Saudi Arabia agreed to make bigger cuts in output than expected during a meeting with allied producers.

CURRENCIES

In the currency market, the commodity currencies leading the gains supported by higher oil and gold prices. Meanwhile, the dollar index fell to a weekly low of 89.20 during the European session.

GOLD

Gold price trading steady above $1950, during the Asian session the yellow metal climbed to a fresh weekly high of $1955 supported by the weaker dollar.

Economic Outlook

On the data front, US ISM Manufacturing PMI increased In December- the PMI climbed to 60.7 in December after dipping to 57.5 in November, with a reading above 50 indicating growth.

Moving ahead today, the important events to watch:

US – ADP employment report: GMT – 13.15

US – Crude oil inventories: GMT – 15.30

US –FOMC meeting minutes: GMT – 19.00

Coronavirus update:

Worldwide coronavirus deaths have reached 1,875,467 with more than 86.8 million reported cases. The United States has reported 20.8 million confirmed cases and has had more than 354,000 deaths from COVID-19, the highest totals in the world. On the positive side, the European Medicines Agency’s is expected to approve Moderna's covid-19 vaccine today which will be the second vaccine to be used in Europe.

Technical Outlook

Dollar Index:
The USD sell-off continues on Wednesday ahead of ADP employment report and FOMC meeting minutes. At the time of writing, the index trading below 89.30.

DXY


The important levels to watch for today: Support- 89 and 88.60 Resistance- 90.40 and 90.90.



GOLD: The precious metal upside rally continues. The important levels to watch today $1960 and $1940.

gold neww


The important levels to watch for today: Support- 1932 and 1926 Resistance- 1940 and 1932.

Quote of the day: Trading decisions should be made as unemotionally as possible – Richard Dennis.

Read more- https://gulfbrokers.com/en/daily-market-report-232
 
shutterstock_1673548843 (1).jpg

"It is a great New Year present for the whole oil industry," Russian Deputy Prime Minister Alexander Novak said on the second day of 13th OPEC and non-OPEC Ministerial meeting.

Crude oil price climbed to 11-month highs boosted by the compromise deal between the Organization of Petroleum Exporting Countries and Russia. Meanwhile, Saudi Arabia, the world’s biggest oil exporter, agreed on Tuesday to make additional, voluntary oil output cuts of 1 million barrels per day (bpd) in February and March. The new compromise among the 23-nation alliance will run through the end of March.

"We do that with the purpose of supporting our economy, the economies of our colleagues in OPEC+ countries, to support the industry," Saudi Prince Abdulaziz bin Salman said.

Apart from that, Geopolitical tensions between Tehran and Seoul over the freezing of Iranian funds in South Korean banks due to US sanctions, a South Korean-flagged tanker was seized in Gulf waters, these increasing tensions also pressured oil prices up.

Moving ahead to the North American session, the investors now await the weekly EIA inventory report on US crude oil stockpiles due later in the day. During the Asian session, the API data showed the US crude inventories fell by 1.7 million barrels in the week to January 1st to 491.3 million barrels. At the time of writing, WTI Crude oil and Brent Crude (ICE) futures were trading at around 50.10 and 53.95, respectively.

Read more- https://gulfbrokers.com/en/crude-oil-prices-skyrockets-5-boosted-by-opec-deal
 
shutterstock_160884488 (1).jpg

On Wednesday, the FED released the December meeting minutes, the minutes showed all FOMC members felt the current pace of purchases was appropriate. While some members ready to expand the bank's bond-buying scheme and others willing to consider tapering it down. The FED committed to using its full range of tools to support the US economy.

EQUITIES

The Dow Jones is hit a new record high, amid hopes for a bigger fiscal stimulus after both Democratic candidates Raphael Warnock and Jon Ossof won their Senate runoff races in Georgia.

OIL

Crude oil price surged to fresh session highs on Thursday boosted by better-than-expected EIA inventory data. The data showed the inventories dropped 8.01 million barrels to 485.46 million barrels in the week ended January 1st.

CURRENCIES

In the currency market, the Dollar Index slightly recovered from the previous session losses after falling to its lowest level in two and a half years.

GOLD

The safe-haven metal slipped more than 1.5% on Wednesday after the global stocks surged fresh record highs on hopes of a faster-than-expected economic recovery.

Economic Outlook

On the data front, the US ADP employment data came weaker-than-expected. The data showed the private sector lost 123,00 jobs in December, much worse than the consensus estimate of 75,000 jobs created.

Moving ahead today, the important events to watch:

Eurozone – Consumer Price Index: GMT – 10.00

US – Jobless claims: GMT – 13.30

US –Services PMI: GMT – 19.00

Coronavirus update:

Worldwide, more than 85 million people have been confirmed infected and more than 1.85 million have died. Cases of the novel coronavirus in the United States have surpassed 21.5 million with more than 365,000 deaths. The UK reported more than 60K new infections and 1K deaths on Wednesday.
Technical Outlook

EUR/USD: The currency pairs retreated back to below 1.23 psychological level after the pair failed to break above 1.2350 resistance level.
eurusd

The important levels to watch for today: Support- 1.2265 and 1.2240 Resistance- 1.2325 and 1.2350.

GOLD: The precious metal slightly rebounded from the previous session lows. At the time of writing, the gold price trading at $1920.
gold neww

The important levels to watch for today: Support- 1914 and 1900 Resistance- 1927 and 1933.

Quote of the day: Buy things that are going up, sell things that are going down. And when they stop, get out. – Rob Smith.

Read more- https://gulfbrokers.com/en/daily-market-report-233

 
EURUSD slipped to the key support 1.2240 after weaker-than-expected Eurozone economic data while Dollar index rebounded back to near the weekly highs.

eurusd.PNG

Moving ahead to the North American session, the important economic data to watch:

US – Jobless claims: GMT – 13.30

US –Services PMI: GMT – 15.00
 
shutterstock_1754891825 (1).jpg

The US nonfarm payrolls report is the highlight of today’s economic calendar. US Bureau of Labor Statistics will release the NFP at 13:30 GMT. The market participants are expecting 71k jobs added in December and the unemployment rate is expected to rise by 0.1% to 6.8%.

EQUITIES

Wall Street ended higher on Thursday lifted by the democrat victory in the US presidential election strengthened hopes for a larger stimulus package. The US stocks also received additional support from the latest strong US economic data.

OIL

Crude oil price jumped again on Friday for the third straight session supported by the better-than-expected US oil inventory data and Saudi Arabia's decision to cut output by 1 million barrels per day.

CURRENCIES

In the currency market, the EURO continuously trading weaker for the second consecutive day ahead of NFP report. If the NFP disappointment could increase the safe-haven outflows toward the USD and pull the pair below the 1.2200 marks.

GOLD

The safe-haven metal trading lower on Friday after the promising developments toward a coronavirus vaccine sparked hopes for a swifter economic recovery. At the time of writing, the precious metal trading below 1900.

Economic Outlook

On the data front, the US ISM Services PMI reported an increase to 57.2 in December, compared to the forecast of 54.5.

Moving ahead today, the important events to watch:

US – Employment report: GMT – 13.30

Canada – Employment report: GMT – 13.30

Coronavirus update:

Worldwide, more than 87.5 million people have been confirmed infected and more than 1.88 million have died. The United States has reported 21.3 million confirmed cases and has had more than 362,000 deaths from COVID-19, the highest totals in the world. While Japanese Prime Minister Yoshihide Suga declared a state of emergency in Tokyo and three other areas on Thursday due to a rise in COVID-19 infections.

Technical Outlook



Dollar Index:
US dollar rebounded back to near the weekly high. Now the future direction of USD will depend on NFP figures which will release later today.

audusd


The important levels to watch for today: Support- 89.60 and 89.40 Resistance- 90.00 and 90.35.



GOLD: The gold price break below the key support of $1900 on Friday and overall, the movement of gold remained bearish from Wednesday.

gold neww


The important levels to watch for today: Support- 1882 and 1870 Resistance- 1900 and 1914.



Quote of the day: “Success is not final; failure is not fatal: It is the courage to continue that counts.” - Winston S. Churchill.

Read more- https://gulfbrokers.com/en/daily-market-report-234
 
Status
Not open for further replies.
Back
Top