Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

Finally, the most awaited November Federal Reserve FOMC policy meeting decision is due to release today. The meeting outcome could bring some volatility in the markets. The FED is expected to leave the fed funds rate unchanged while the central bank is widely expected to taper its bond purchase programme.

“I do think it’s time to taper, and I don’t think it’s time to raise rates,” Federal Reserve Chair Jerome Powell said in October

EQUITIES

US stock futures were flat on Wednesday as investors were reluctant to make any big moves ahead of the most anticipated US FED decision.

OIL

Crude oil prices extend the decline in the Asian session following the release of API inventory data. The data showed the US crude supplies increased by 3.6 million barrels for the week ending on Oct. 29, compared to the market estimate of a 1.567-million-barrel rise.

CURRENCIES

In the currency market, the EURUSD ended lower on Tuesday driven by weaker-than-expected German and Eurozone manufacturing PMI data. The New Zealand dollar slightly recovered the early session losses and rebounded back to above 0.7110 on Wednesday after the release of stronger-than-expected employment figures.

GOLD

The Safe-haven metal trading was slightly lower on Wednesday after climbing to a fresh weekly high of $1795 on Tuesday. Overall, the momentum remains bearish throughout the Asian session.

Economic Outlook

On the data front, New Zealand reported a strong employment report. The unemployment rate fell from 4.0% to 3.4% in the third quarter of 2021. On the other hand, the Australian building approvals fell by 4.3% in September, compared with market estimates of a 2% fall.

Moving ahead today, the important events to watch:

US – ISM services PMI: GMT – 14.00

US – EIA crude inventories: GMT – 14.30

US – FOMC Interest rate decision and statement: GMT – 18.00

Coronavirus update:

Worldwide, more than 246 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46 million cases and has had more than 740,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

GBPUSD: The currency pair extends slide to a fresh weekly low of 1.3600 during the previous session. The next downside levels to watch are 1.3570 and 1.3540. On the flip side, the immediate resistance at 1.3670 and 1.3730.

The important levels to watch for today: Support- 1.3600 and 1.3570 Resistance- 1.3650 and 1.3680.

GOLD: The precious metal hovers above the $1780 level. The metal needs a clear break of the previous session high $1795 to move further upside $1806/10. On the flip side, a breakdown through $1770 would negate that bias and suggest a test of the $1755/50 support region.

The important levels to watch for today: Support- 1772 and 1760 Resistance- 1795 and 1810.

Quote of the day- I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years- Warren buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-396

 

[syamfx2020]

The British pound trades flat on Thursday. The future direction of this currency pair is expected to be determined by the release of the Bank of England (BoE) interest rate decision. The BOE will announce its latest decision on monetary policy on Thursday. At its last meeting on 23 September, the MPC voted unanimously to keep the base rate at 0.1%

EQUITIES

Wall Street ended at a record high on Wednesday after the US central bank gave no clue on the timeline of rates hikes. The upside momentum was also supported after the U.S. private payrolls increased more than expected in October.

OIL

Crude oil prices struggling to find the upside momentum ahead of the OPEC decision. On Wednesday, the oil prices plunged to the weekly low following the release of the EIA inventory report. The report showed US crude inventories increased by a more than expected 3.3 million barrels last week.

CURRENCIES

In the currency market, the US dollar index rebounded back to above 94.00. During the previous session, the index slide after the Federal Reserve announced the beginning of taper this month. Meanwhile, the EURUSD retreat back to below 1.1570 following the release of weaker-than-expected German factory orders.

GOLD

The Safe-haven metal slightly rebounded from the previous session lows while the overall, momentum remains under pressure after the FED decision. The metal fell to a fresh weekly low of $1760 on Wednesday.

Economic Outlook

On the data front, Federal Reserve kept interest rates unchanged at the zero-bound range while the central bank said it will reduce the pace of asset purchases by $15 billion a month starting this month and the Fed will continue to wind down its purchases by $15 billion every month until the program concludes during the middle of next year.

"It is time to taper we think because the economy has achieved substantial further progress toward our goals measured from last December," Fed Chairman Jerome Powell said. "We don't think it's time yet to raise interest rates. There is still ground to cover to reach maximum employment, both in terms of unemployment, in terms of participation" he added.

Moving ahead today, the important events to watch:

UK – BOE interest rate decision and statement: GMT – 12.00

US – Jobless claims: GMT – 12.30

Coronavirus update:

Worldwide, more than 247 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46 million cases and has had more than 743,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

Dollar Index: The US dollar index slightly rebounded from the key support area of 93.80. Moving ahead to the North American session, the USD traders should closely monitor the release of U.S weekly jobless claims and trade balance figures.

The important levels to watch for today: Support- 93.80 and 93.65 Resistance- 94.20 and 94.35.

GOLD: The yellow metal trading weaker below $1780. Today, gold is again expected to face resistance around $1795 along with support around $1760 and $1752.

The important levels to watch for today: Support- 1768 and 1758 Resistance- 1780 and 1787.

Quote of the day- “Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return.” ― Warren Buffett.

Read more - https://gulfbrokers.com/en/daily-market-report-397

 

[syamfx2020]

Shares of Ride-hailing giant Lyft (NASDAQ: LYFT) jumped 10% on Wed following the release of better-than-expected Q3 earnings.

EPS: $0.05 -$0.03 expected

Revenue: $864M$862M expected

"Driver supply materially improved in Q3, up nearly 45% versus last year, reflecting strong new driver trends," Lyft CEO, Logan Green said.

Moving ahead, Lyft’s top competitor in the ride-sharing market Uber (NYSE: UBER) is set to announce its Q3 results today.

 

[syamfx2020]

Shares of athletic apparel maker Under Armour (NYSE: UAA) jumped more than 20% this week after the company reported solid third-quarter financial results. Under Armour raised its full-year 2021 outlook and the company anticipates revenue for the year to climb 25% to $5.62B.

• Earnings per share: 0.31 vs. 0.10 expected
• Revenue: $1.55 billion vs. $1.48 billion expected

The strong last quarter results were boosted by the demand for sneakers and performance apparel. During the quarter, Under Armour apparel revenue climbed 14% YoY to $1.1B and footwear revenue increased by 10% to $330M while Accessories revenue fell 13% to $126M.

“With industry-leading innovations, increased marketing efforts to deepen our connection with focused performers, and consistent operational discipline – we’re building greater brand affinity and are on track to deliver record revenue and earnings results in 2021.” - Under Armour CEO, Patrik Frisk said.

Under Armour stock currently hovers near the $28 resistance level. If the bullish momentum continues then the next upside levels to watch $33 and $37. On the downside, any meaningful pullback now seems to find some support near the $23/22 zones, below which the slide could further get extended towards the $20/19 region.

Read more- https://gulfbrokers.com/en/under-armour-stock-spikes-20-after-earnings-beat

 

[syamfx2020]

The dollar index, which measures the greenback against six other major currencies trades steady ahead of the US employment report, which is set to be released at 12:30 GMT. The market participants are anticipating a gain of 450k jobs in October, the unemployment rate is expected to tick down to 4.7%. On Wednesday, the ADP employment data showed the private sector added 571.000 jobs in May, compared to 400,000 expectations.

EQUITIES

Wall Street ended mostly higher on Thursday. The Nasdaq and the S&P 500 reached the fresh record high while the Dow Jones index closed slightly lower after a sharp drop in the price of oil dragged down energy companies.

On the earnings front, Coinbase (NASDAQ: COIN) and DraftKings (NASDAQ: DKNG) reporting earnings today before the bell.

OIL

Crude oil prices extend losses and the losses accelerated after a report that Saudi Arabia's oil output will soon surpass 10 million barrels per day. Meanwhile, the Biden administration signalled the US will consider a full range of tools to stabilize oil prices.

CURRENCIES

In the currency market, the British pound fell to a fresh monthly of 1.3472 on Thursday following the BOE decided to leave interest rates and quantitative easing policies unchanged, its biggest single-day drop since end-September. On the other hand, the Euro remained under pressure after the ECB President Christine Lagarde said this week that the ECB was very unlikely to raise rates next year.

GOLD

The Safe-haven metal trades near the weekly highs ahead of the US jobs report. Overall, the momentum remained bullish throughout the Asian session.

Economic Outlook

On the data front, German industrial production dropped to 1.1% in September, compared to the market expectation of a 1% rise. On Thursday, the US released the latest weekly jobless claims numbers. The data showed the Jobless claims dropped by 14,000 to 269,000 last week.

Moving ahead today, the important events to watch:

Eurozone – Retail Sales: GMT – 10.00

US – Nonfarm payrolls: GMT – 12.30

Coronavirus update:

Worldwide, more than 247 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46 million cases and has had more than 743,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: The currency pair slightly recovered from the previous session losses. Any break below the previous session low 1.1528 will open the doors to 1.1510 and 1.1490. On the upper side, the immediate resistance is at 1.1620.

The important levels to watch for today: Support- 1.1525 and 1.1490 Resistance- 1.1600 and 1.1640.

GOLD: For today, as long as the metal trades above $1795 levels, the medium-term uptrend will remain in place. On the downside, $1787 is the immediate support level, followed by $1780. Further selling pressure will intensify only if the metal break below $1770 levels again.

The important levels to watch for today: Support- 1782 and 1770 Resistance- 1810 and 1815.



Quote of the day- The consistency you seek is in your mind, not in the markets - mark Douglas.

Read more- https://gulfbrokers.com/en/daily-market-report-398

 

[syamfx2020]

Last week, most stock markets around the world ended higher boosted by stronger-than-expected US employment reports and corporate profits. The Bureau for Labor Statistics said 531,000 new jobs were created last month, compared to a market expectation of 450,000 and the unemployment rate down to 4.6%. Moving ahead to this week, the economic data is limited to inflation data for the US, Germany and China.

On the earnings front, the companies due to release their results will be the Data-mining and analytics firm Palantir Technologies (NYSE: PLTR) and the entertainment giant Walt Disney (NYSE: DIS) will be among those reporting earnings this week.

GOLD

Gold price rallied more than 2% last week after the USD gives back some of the gains. However, considering the recent strong upside momentum, the US dollar movement will continue to play a vital role in the metal‘s future direction.

This week, the key resistance is located above $1830, a break above this level will confirm a possible move to $1842/60. On the downside, if the metal loses the $1790 handle, then we expect a move toward $1780/72.

DOLLAR INDEX

The US dollar index ended slightly lower on Friday. On Friday, the Index jumped from the session low of 94.18 to almost the session high of 94.60 after a better than expected U.S. NFP job report. But soon after the NFP jump, the greenback retreated back to below 94.20. While the downside looks solid as traders should continue to accumulate on dips towards 93.70-93 in the near term.

For this week, the index is supported at 93.80 level, any break below this level will open the doors to 93.50 and 93.30. On the flip side, if the DXY breaks above 94.60 which would open doors towards the next resistance area of 94.80/95.

Read more here - https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-13

 

[syamfx2020]

Shares of cybersecurity firm McAfee (NASDAQ: MCFE) jumped 25% last Friday after the Wall Street Journal report said, the company is nearing a deal to sell itself to US private equity firm Advent International for more than $10 billion.

However, both of the parties are not issued an official statement to confirm or deny the agreement. The deal could be announced on Monday and there are chances the talks could still fall apart, the report said. A few months back, the company sold its enterprise division to a consortium led by Symphony Technology Group.

McAfee is an antivirus software provider that provides cyber security solutions for data centres and cloud services. Antivirus software company returned to Wall Street on October 22, 2020, and it commenced trading on the Nasdaq.

McAfee stock up more than 50% over the previous 12 months. On Friday, the stock ended over 20% higher at $25.46 and Its market capitalization has since risen to $ 11 billion.

Read more- https://gulfbrokers.com/en/why-cybersecurity-firm-mcafee-stock-jumped-25-on-friday

 

[syamfx2020]

EURNZD rebounded back to above 1.62 and making an inverted head and shoulder pattern. If the bullish momentum continues the next upside levels to watch at 1.6260 and 1.63. On the flip side, the key support remains 1.6110/1.6070.

 

[syamfx2020]

Shares of videogame publisher Roblox (NYSE: RBLX) bounced more than 30% in after-hours trading on Monday after the company reported stronger-than-expected third-quarter financial results. The company revenue increased 102% compared to Q3 2020 and during the third quarter, the average daily active users (DAU) were 47.3 million, up from 43 million in the second quarter.

• Earnings per share: -0.13 vs. -0.14 expected
• Revenue: $637.8 million vs. $636.5 million expected

We’re very pleased that during the third quarter, people of all ages from across the globe chose to spend over 11 billion hours on Roblox,” Roblox CEO, David Baszucki said. " As we finish 2021 and head into 2022, we will continue to invest in innovative technology to enable our developer community to do what they do best — build and create” he added.

EQUITIES

Wall Street ended slightly lower on Monday following the dovish comments from FOMC Member Richard Clarida. While the overall momentum remains bullish after key central banks indicated interest rates would remain low in the near term.

OIL

Crude oil prices ended higher for the second consecutive day on Monday supported by the stock market rally. However, the overall momentum remains mixed ahead of US crude inventory data.

CURRENCIES

In the currency market, the EURUSD buyers seem to catch a breath ahead of the key German ZEW Economic Sentiment index. During the Asian session, the currency pair climbed to a fresh weekly high of 1.1605.

GOLD

The Safe-haven metal holds the weekly gains. Moving ahead to the North American session, the gold traders and investors should closely monitor the release of the US Producer Price Index (PPI) data.

Economic Outlook

On the data front, Germany reported the latest trade balance data. The data showed the September trade balance came €13.2 billion, compared to the market expectation of €13.0 billion.

Coronavirus update:

Worldwide, more than 250 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46 million cases and has had more than 745,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

AUDUSD: The currency pair trades above 0.7420. If the bullish momentum continues then the next upside level is to watch 0.7450 and 0.7470. On the downside, any meaningful pullback now seems to find some support near the 0.7390 zones, below which the slide could further get extended towards the 0.7350 regions.

The important levels to watch for today: Support- 0.7410 and 0.7385 Resistance- 0.7450 and 0.7470.

GOLD: In the short-term perceptive, the immediate bias will remain bullish as long as prices are held above $1818. On the flip side, any break below $1815 then the next support near $1810 followed by $1805 level.

The important levels to watch for today: Support- 1820 and 1815 Resistance- 1828 and 1832.

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-399

 

[syamfx2020]

Gold prices surged to its highest level in two months after the US and UK central banks indicated interest rates would remain low in the near term. At the time of writing, the yellow metal was trading above $1727. Considering the recent bullish move the gold investors will closely monitor the release of US inflation data, which is set to be released on Wednesday, 10th November.

The technical scenario is bullish after the price breaks above the psychological mark of $1800. Currently, the gold price trades near the crucial trend line resistance area 1830/35. In the short-term, If the price break above $1835 the next upside levels to watch $1842 and $1860. On the flip side, the immediate support is near $1815 followed by $1810/00.

Crude oil prices struggling to find the upside momentum ahead of crude inventories data. During the last week, the EIA inventory report showed US crude inventories increased by a more than expected 3.3 million barrels last week. The oil traders also waiting for this week OPEC monthly report, which will help form outlook for the demand-supply balance.

On the other hand, the members of the Organisation of the Petroleum Exporting Countries and allied countries on last Thursday decided to only raise output by the agreed 400,000 barrels per day from December, despite Biden’s calls for increased oil production ahead of forecast.

Technically the overall momentum remained mixed after the US crude oil prices ended into negative territory for the last two weeks. Meanwhile, the oil prices started this week slightly higher and recovered from some previous week losses.

Moving ahead If the bullish momentum continues then the next upside levels to watch and 83.40/84.20. On the downside, any meaningful pullback now seems to find some support near the 80.70 zones, below which the slide could further get extended towards the 79.50/78.00 region.

Read more- https://gulfbrokers.com/en/gold-and-oil-prices-looking-for-further-direction