Daily Market Report by GulfBrokers 2020-2021

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Social media giant Facebook (NASDAQ: FB) stock fell almost 5% per cent on Monday after its app, its photo-sharing platform Instagram, and messaging service WhatsApp, suffered a massive global outage. The outage, which has affected millions of users around the world and it educed Facebook CEO, Mark Zuckerberg's personal wealth by the US $ 7 billion on Monday.

"Facebook, Instagram, WhatsApp and Messenger are coming back online now. Sorry for the disruption today — I know how much you rely on our services to stay connected with the people you care about," Mark Zuckerberg, the CEO of Facebook said.

EQUITIES

Wall Street ended lower on Monday after US President Joe Biden said he cannot guarantee the government will not breach its $28.4 trillion debt limit unless Republicans join Democrats in voting to raise it.

OIL

Crude oil prices holding the previous session gains. On Monday, the oil prices bounced after the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to stick to the script and only increase output in November by 400,000 bpd.

CURRENCIES

In the currency market, the EURUSD has started to reverse lower, following a period of strength that took the pair up into the key $1.1740 resistance level on Monday. Meanwhile, the British pound remains strong against the Euro.

GOLD

The safe-haven metal climb to a fresh weekly high of $1770 on Monday. However, the upside price action remained under pressure as the US dollar Index rebound back to above the key resistance area of 93.90.

Economic Outlook

The RBA on Tuesday kept rates on hold at a record low of 0.1 per cent and the central bank committed to keeping the rate of bond purchases steady at $4bn a week until February. "The Delta outbreak has interrupted the recovery of the Australian economy and GDP is expected to have declined materially in the September quarter," RBA governor Philip Lowe said.



Moving ahead today, the important events to watch:

US – Trade balance: GMT – 12.30

US – ISM services PMI: GMT – 14.00

Coronavirus update:

Worldwide, more than 235 million people have been confirmed infected and more than 4.8 million have died. The United States has confirmed over 43.8 million cases and has had more than 700,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD:
The currency pair retreated back to below 1.1700 after it failed to break above the 1.1740 resistance. Overall, the momentum remains bearish throughout the European session.

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The important levels to watch for today: Support- 1.1580 and 1.1560 Resistance- 1.1620 and 1.1650.



GOLD: The yellow metal trades below $1760, any break below $1747 the next downside side level to watch is $1735/30. On the upper side, the immediate resistance was around $1770 then 1785.

gold neww


The important levels to watch for today: Support- 1747 and 1740 Resistance- 1765 and 1772.

Quote of the day- “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” — Robert Kiyosaki.

Read more- https://gulfbrokers.com/en/daily-market-report-381
 
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The Reserve Bank of New Zealand has raised the cash rate from 0.25 per cent to 0.5 per cent as widely expected. The New Zealand dollar plunged to a fresh session low of 0.6880 after the decision.

“The Committee noted that further removal of monetary policy stimulus is expected over time, with future moves contingent on the medium-term outlook for inflation and employment,” RBNZ said.

EQUITIES

US stock futures retreat from the previous session highs. On Tuesday, Wall Street ended slightly higher supported by better-than-expected US economic data. The US ISM Services PMI edged higher to 61.9, up from 61.7 in August.

OIL

Crude oil prices reversing some gains made in the early session, focus shifts to EIA data. During the Asian session, the API inventory data showed US oil inventories rose by 951,000 barrels last week.

CURRENCIES

In the currency market, the Euro remains under pressure after the weaker-than-expected German factory orders data and dovish comments from European Central Bank President Christine Lagarde.

GOLD

The safe-haven metal trades below $1750 ahead of US ADP employment data. Overall, the momentum remains bearish throughout the European session.

Economic Outlook

On the data front, German factory orders plunged 7.7% in August of 2021 compared to market forecasts of a 2.1% fall. On the other hand, the Eurozone retail sales reported less than expected.

Moving ahead today, the important events to watch:

US – ADP employment report: GMT – 12.15

US – EIA crude inventories: GMT – 14.30

Coronavirus update:

Worldwide, more than 235 million people have been confirmed infected and more than 4.8 million have died. The United States has confirmed over 43.8 million cases and has had more than 700,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

Dollar Index:
The US dollar Index trades steady above 94.30. If the bullish momentum continues the next upside levels to watch 94.50 and 94.70.

DXY


The important levels to watch for today: Support- 94.10 and 93.90 Resistance- 94.50 and 94.70.



GOLD: The yellow metal trades below $1750, any break below $1746 the next downside side level to watch is $1735/30. On the upper side, the immediate resistance is around $1756 then 1760.

gold neww


The important levels to watch for today: Support- 1744 and 1735 Resistance- 1756 and 1760.

Quote of the day- “The stock market is a battlefield. Always remember to survive in the game first. Only those that survive the battle can enjoy the spoils of the war.” – Benjamin Lee.

Read more- https://gulfbrokers.com/en/daily-market-report-382
 
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The American pharmaceutical company Merck (NYSE: MRK) shares bounced more than 9% so far this month. Meanwhile, the stock prices of vaccine makers including Moderna and Novavax dropped following the report on Merck’s pill.

Merck stock jumped after the company announced promising results of their antiviral drug, molnupiravir. The latest clinical trials indicated it could reduce by about 50% the likelihood of hospitalisation or death for patients from Covid-19.

“With these compelling results, we are optimistic that molnupiravir can become an important medicine as part of the global effort to fight the pandemic and will add to Merck’s unique legacy of bringing forward breakthroughs in infectious diseases when they are needed most,” Merck CEO, Robert M. Davis said.

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The pharmaceutical company said molnupiravir was effective against all coronavirus variants, including the highly transmissible Delta. The company is seeking to secure emergency use authorisation by the U.S. Food and Drug Administration as soon as possible based on these findings. If approved, it would be the first oral medicine and an easier way to treat people who have been infected with COVID.

Merck says it can make as many as 10 million doses of molnupiravir by the end of the year. The U.S. government has committed to purchase 1.7 million doses of the drug if it is authorized by the FDA. On the other hand, Pfizer and Swiss drugmaker Roche are also racing to develop an easy-to-administer antiviral pill for COVID-19.

$MRK technical outlook

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Technically the overall momentum remains bullish. At the time of writing, the stock trading slightly down from the recent peak. However, in the coming days, there are chances the $MRK stock may eventually rise to an all-time high of $92 but anyway it depends upon the FDA and other governments approval. On the flip side, the first immediate support can be found at $79 and then $75.

Read more- https://gulfbrokers.com/en/is-merck-stock-the-new-black-horse-in-the-pharma-industry
 
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The Euro slightly rebounded against the US dollar ahead of the ECB minutes from the September meeting. Meanwhile, the European Central Bank chief Christine Lagarde has suggested that the bank will continue on the current path of stimulus and ignore inflation for the time being.

EQUITIES

US stock futures and European stocks holding the early session gains. On Wednesday, Wall Street ended higher for the second consecutive day after the release of stronger-than-expected ADP data.

OIL

Crude oil prices reversed from the highest levels seen in seven years after the release of weaker-than-expected EIA and API inventory data. The EIA data showed on Wednesday, crude stockpiles grew by 2,346 thousand barrels last week.

CURRENCIES

In the currency market, the safe-haven Japanese yen and the British pound holds steady against the US dollar on Thursday. On the other hand, the New Zealand dollar struggling to find upside momentum following the RBNZ rate decision.

GOLD

The safe-haven metal remains undecided as to which way its next directional break will be as the investors waiting for the US NFP numbers, which is set to be released on Friday.

Economic Outlook

On the data front, US ADP payrolls increased by 568,000 last month, after a revised 340,000 gain in August, according to ADP Research Institute data released Wednesday.

Moving ahead today, the important events to watch:

EUROZONE – ECB meeting minutes: GMT – 11.30

US – Jobless claims: GMT – 12.30

Coronavirus update:

Worldwide, more than 235 million people have been confirmed infected and more than 4.8 million have died. The United States has confirmed over 48 million cases and has had more than 703,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD:
The currency pair rebounded after it found short-term buyers below the 1.1530 area. If the bullish momentum continues the next upside levels to watch 1.1580 and 1.1630. On the downside, 1.1500 remain a key support level to watch.

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The important levels to watch for today: Support- 1.1530 and 1.1500 Resistance- 1.1580 and 1.1610.

GOLD: The yellow metal slightly retreats from the early session high of $1766, any break above this level the short-term upside levels to watch $1772 and $1780. On the downside, the immediate support at $1750 and $1744.

gold neww


The important levels to watch for today: Support- 1750 and 1744 Resistance- 1772 and 1780.

Quote of the day- I have found that when the market’s going down and you buy funds wisely, at some point in the future, you will be happy. You won’t get there by reading. Now is the time to buy. – Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-383
 
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Global markets ended mixed on Friday following the release of the Non-Farm Payrolls report. The data showed the US economy added 194K jobs last month, well below market expectations of 500,000 new jobs.

Moving ahead to this week, the Investors will shift their attention to major US banks' earnings. JPMorgan (NYSE: JPM) is scheduled to release results on Wednesday, followed by Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), Wells Fargo (NYSE: WFC), Bank of America (NYSE: BAC), and Morgan Stanley (NYSE: MS) later in the week.

GOLD

Gold price started the new week on a bearish note after the corrective growth of USD. The main drivers for the precious metal remain the US inflation data, rising US bond yields and the movement of the US dollar.

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For this week, $1,740 is the immediate support level, followed by the $1,720. If the pair breaks below the $1,720, the slump will quickly extend toward the $1,700 mark. On the upper side, gold is likely to find immediate resistance at $1,766, any break above the $1,764 level could lead the prices of the precious metal towards the next resistance levels of $1,776 and $1,780.

DOLLAR INDEX

The greenback has closed almost flat on the weekly basis but the Index has remained in favour as a safe haven currency as investors believe the Federal Reserve will start reducing its massive stimulus scheme this year.

DXY


This week the resistance for DXY is around 94.50, any break over targets 94.80/95. On the flip side, if the Index breaks and close below 93.65 which would open doors towards 93.40 and below that 93.10 is next.

EURUSD

The key data’s for Euro and Dollar for this week will once again be the FOMC as we get the latest minutes from their most recent meeting and German ZEW Economic Sentiment. However, the US dollar movement will continue to play a vital role in this currency pair's future direction.

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Technically the overall momentum remains bearish, the immediate support for the Euro stands near the psychological level of 1.1500. On the flip side, the first resistance at 1.1600 any break above this level will open 1.1640/80 minimum.

DOW JONES

Dow Jones ended flat on Friday despite weaker-than-expected US NFP data. The market sentiment got a boost in the previous session after US Senate leaders worked together to approve a temporary lift to the debt ceiling.

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This week support for the Dow Jones appears to be around 34,250, any break below this level will open 34,000 and 33, 800. On the other side, the important resistance to watch is 35,080 and 35,200.

Read more- https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-9
 
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CAD remains strong against the EURO supported by the oil price rally. EURCAD trades now below 1.4400, while the pair technically oversold and coming into prior support. Watch for a bounce from this area
 
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The world's largest pizza chain Domino's Pizza (NYSE: DPZ) is set to announce its third-quarter 2021 financial results on Thursday, Oct. 14. During the second quarter, Domino's global retail sales growth increased by 17.1% from the year prior.

A consensus of estimates for the upcoming Q3 2021 Domino’s results arrive at the following:

  • Revenue for the quarter of $1.03 billion
  • Earnings per share (EPS) for the quarter of $3.11
The $DPZ stock is currently supported at $465 and the resistance is around $505. Technically the overall momentum remains bearish. However, there is a possibility that Domino’s stock could slightly rebound if the company exceeds expectations. On the downside, a drop below $465 will invalidate the short-term bullish view.

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$DPZ key technical levels to watch this week:

  • Support: $472 and $465
  • Resistance: $490 and $502
In the long term, watch for monthly closing above $505 or below $440 area, that will give a larger confirmation of direction in the long term.

Read more- https://gulfbrokers.com/en/dominos-nyse-dpz-q3-earnings-preview
 
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Shares of Gambling and resorts giant MGM Resorts (NYSE: MGM) rallied more than 9% on Tuesday and climbed to a fresh 52-week high of $48.94. The strong bullish momentum came after Credit Suisse upgraded the company’s shares to “outperform” from “neutral” status, with a $68 price target.

“MGM has gone through a transformation, recently announcing four transactions, and we believe the market is not giving full credit,” Credit Suisse said.

Last month, MGM Resorts entered into a definitive agreement with Blackstone Group to acquire the hotel operations of The Cosmopolitan of Las Vegas for $1.625 billion. The Cosmopolitan is an 800-room luxury resort and casino that opened in 2010. Blackstone purchased the property from Deutsche Bank for $1.7 billion in 2014. According to Blackstone, the transaction is expected to close in early 2022.

“We look forward to welcoming The Cosmopolitan's guests and employees to the MGM Resorts family," MGM Resorts CEO, Bill Hornbuckle said.

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Technically the overall momentum remained bullish for the $MGM throughout this year and the stock is up 40% so far in 2021. In the short term, if the bullish momentum continues the stock can push further up continuing the uptrend with the first potential target should be $50/54.

Read more- https://gulfbrokers.com/en/casino-giant-mgm-stock-spikes-9-hits-fresh-52-week-high
 
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Today, the Investors and traders will closely monitor the release of US Federal Reserve monetary policy meeting minutes that might add some volatility to the market. During the last FOMC meeting, the central bank left the policy unchanged as expected but hinted about tapering of its monthly asset purchase program in November and hope for the rise rate hike in next year.

Meanwhile, on Tuesday, Atlanta Fed Bank President Raphael Bostic said that the US inflation was above the Federal Reserve’s 2% inflation target.

EQUITIES

US stock futures trading near the session low as investors waiting for the release of US inflation data and big banks earnings results. Meanwhile, the Asian shares traded steady following the release of better-than-expected Chinese economic data. Chinese exports increased by 28.1% in September from a year earlier, accelerating from a 25.6% increase in August

OIL

Crude oil prices struggling to find the upside momentum, focus shifts to the API and EIA inventory report. On the other hand, the oil investors should also closely monitor the OPEC monthly report which is set to be released at 11:00 GMT.

CURRENCIES

In the currency market, the EURUSD slightly rebounded on Wednesday after the US dollar kept the gains limited from the early Asian session. During the previous session, the currency pair plunged to a fresh year low of 1.1523.

GOLD

The safe-haven metal trades near the weekly high ahead of US inflation data. The upside momentum came after the IMF revised downwards its 2021 global growth forecast by 0.1 percentage points to 5.9%.

Economic Outlook

On the data front, UK reported better-than-expected economic data. Industrial production in the UK rose 0.8% in August and U.K. gross domestic product grew by 0.4 percent in August over July.

Moving ahead today, the important events to watch:

US – CPI: GMT – 12.30

US – FOMC meeting minutes: GMT – 18.00

Coronavirus update:

Worldwide, more than 235 million people have been confirmed infected and more than 4.8 million have died. The United States has confirmed over 48.5 million cases and has had more than 703,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD:
The currency pair holding the early session gains even after the release of weak Eurozone industrial production data. At the time of writing, the pair trades above 1.1550

eurusd


The important levels to watch for today: Support- 1.1520 and 1.1500 Resistance- 1.1580 and 1.1610.

GOLD: Today the gold price is supported at below $1750, any break below $1746 will open the doors to $1740 and $1735. On the other upper side, the immediate resistance at $1770 and $1779.

gold neww


The important levels to watch for today: Support- 1760 and 1748 Resistance- 1772 and 1779.

Quote of the day- “In trading/investing, it’s not about how much you make but rather how much you don’t lose.” - Bernard Baruch.

Read more- https://gulfbrokers.com/en/daily-market-report-384
 
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