Daily Market Report by GulfBrokers 2020-2021

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California based Cloud-based data warehouse firm Snowflake (NYSE: SNOW) shares climbed 16% on Thursday and reached to new highs. The software company reported the first earnings on Wednesday after it went public on Sept. 16. Shares of Snowflake began trading at an initial public offering price of $120 but due to demand for the stock the first trade was at an incredible $245 per share.

“With the onslaught of digital transformation, data operations have become the beating heart of the modern enterprise. The pandemic has been more or less neutral to our business” - Snowflake, CEO Frank Slootman.

In Q3, the company revenue jumped 119% to $159.6 million, slowing from the previous quarter's 121% growth. While the losses per share came in lower than last year's $1.92 at $1.01. For the fourth quarter, Snowflake is projecting product revenue of $162 million to $167 million, which comes in below the average estimate of $166 million.

$SNOW fell more than 8% in after-hours trading on Wednesday following the earnings announcement, but the stock recovered from the early session losses and surged to new highs of $343 on Thursday. The software stock had surged roughly 143% from its IPO in September and the company now has a market cap of $94.05 billion.

Read more- https://gulfbrokers.com/en/snowflake-shares-climb-to-new-highs

 

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EURUSD nice 70+ pips drop

 

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View attachment brexit-4129517.jpg
The British pound plunged on Monday after EU chief negotiator Michel Barnier told national envoys in Brussels that he was “rather downbeat as to the prospects of agreement” while Irish Prime Minister Micheal Martin said on Sunday the chances of a deal were just 50-50. On the other hand, the Sun newspaper reported that UK Prime Minister Boris Johnson is ready to pull out of Brexit talks in response to new EU demands. The negotiations are planned to continue on Monday, British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen are set to review the situation in the evening.

EQUITIES

European markets retreated lower on Monday as investors remain concerned about the UK and European Union negotiating a post-Brexit trade agreement. US stock futures trading slightly lower as the number of COVID cases continues to surge in the US. On Sunday, 101,487 patients were in the hospital with the virus, the fifth consecutive day the US surpassed 100,000 hospitalizations.

OIL

Crude oil prices started on a bearish note. While during the last week oil prices ended higher following the compromise deal reached by the OPEC members and its allies.

CURRENCIES

In the currency market, the Asian currencies fell on Monday after Reuters reported the United States to impose sanctions on a dozen Chinese officials. The US dollar finally recovered from the previous week losses and trading above $91 during the European session.

GOLD

Gold prices slipped on Monday. During this week, the gold investors and traders will closely monitor the FDA’s approval of the vaccine created by Pfizer and BioNTech which is scheduled to come on Thursday.

Economic Outlook

On the data front, China exports advanced 21.1% year-on-year in November, much bigger than the economists' forecast of 12%. Imports rose 4.5% year-on-year in November, slightly slower than 4.7% in October. The trade balance increased to $75.42 billion versus the expected $53.50 billion.

This week the main highlights of the economic calendar will be the ECB and BOC interest rate decision and statement, UK GDP and industrial production data, US CPI and Oil inventories. On the earnings front, Adobe, Chewy and Costco will release their last quarter financial results.

Coronavirus update:

Worldwide, there have been at least 66,357,000 reported infections and 1,530,000 reported deaths caused by the new coronavirus so far. In the US, more than 14.7 million confirmed cases have been reported in the US since the pandemic began, and more than 282,310 people have died. On the positive side, Russia has started COVID-19 vaccination while the UK is set to become the first country to roll out the Pfizer/BioNTech COVID-19 vaccine this week.

Technical Outlook

EUR/USD: After two weeks of consecutive upside rally the currency pair started the week lower. At the time of writing, the pair trading below 1.2100.

The important levels to watch for today: Support- 1.2080 and 1.2040 Resistance- 1.2140 and 1.2180.



GOLD: The yellow metal dropped to near the short-term support area of $1820. Overall, the momentum remains bearish throughout today.

The important levels to watch for today: Support- 1820 and 1806 Resistance- 1836 and 1842.

Quote of the day: One of the many funny things about the stock market is that every time one person buys, another sells, and both think they are astute-William Feather.

Read more- https://gulfbrokers.com/en/daily-market-report-223

 

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The aerospace giant Boeing (NYSE: BA) shares gained around 8% during the previous week. The stock surged another 2% on Monday and continues 6th-week upside move. During the first quarter of 2020, the Boeing shares sank due to the coronavirus pandemic.

At the beginning of November, the $BA stock gained upside momentum after the Federal Aviation Administration lifted the grounding of the 737 MAX aircraft that was implemented in March 2019 following two deadly crashes that killed 346 people. Now Boeing awaits clearance from several other aviation regulators worldwide, including European authorities.

On the other hand, the Airline stocks received additional support after the encouraging news on coronavirus vaccine from Pfizer and Moderna. Last week, the regulators in the United Kingdom have approved Pfizer's vaccine for use.

Considering the recent recovery of Boeing shares, the long-term view of the stock depends upon on the demand for the new aircraft and second stimulus package from the U.S. government. On the positive side, European discounter Ryanair is reportedly eyeing an order for 75 additional 737 MAX planes, this is by far the biggest order for the 737 Max since the two accidents at Lion Air and Ethiopian.


Boeing (BA) technical outlook

The $BA currently supported at $140 and the resistance around $300. The Boeing shares have added more than 65% since November 1st. The stock closed on Monday at $238. In the short term if the stock holds above $240 the next upside target at $290. On the other side, if the price break and close below $220, the next immediate support to watch $208 and then $200.

Read more- https://gulfbrokers.com/en/boeing-shares-back-to-above-june-highs-can-we-expect-further-upside

 

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Stocks and Oil prices start the week on a mixed note as COVID19 cases continued to surge in the US and Europe.

Moving ahead there are other few key events and earnings to watch

 

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Gold price climbed to fresh weekly highs of $1870 on Tuesday lifted by optimism over a new US coronavirus fiscal relief bill. On the other hand, Japanese Prime Minister Yoshihide Suga announced a fresh $708 billion economic stimulus package on Tuesday.

EQUITIES

Asian shares traded lower as investors’ worries on rising tension between Washington and Beijing after the US is set to impose sanctions on more than a dozen of Chinese officials who allegedly took part in the disqualification of opposition lawmakers in Hong Kong.

OIL

Crude oil prices trading lower on Tuesday as coronavirus cases continue to surge across Europe and the US. Moving ahead to the North American session, the Investors now await the weekly API report on US crude oil stockpiles due later in the day.

CURRENCIES

In the currency market, the British pound trading extra volatile as the post-Brexit drama continues. On Monday, a joint statement released after the phone conversation between UK PM Boris Johnson and with European Commission President Ursula von der Leyen. "We agreed that the conditions for finalizing an agreement are not there due to the remaining significant differences on three critical issues: level playing field, governance, and fisheries," the statement said.

GOLD

Gold prices slightly retreated from the daily highs. Overall, the momentum remains mixed as the investors looking for fresh updates on a pandemic relief package.

Economic Outlook

On the data front, Japan's economy grew an annualised 22.9 year on year from the initial estimate of 21.4%. On a quarterly basis, GDP increased by 5.0%, revised upwardly from the 4.7% drop in the preliminary report.

On the coronavirus Vaccine front, the first doses of the vaccine — developed by American drugmaker Pfizer and Germany’s BioNTech — are set to be administered in the U.K. starting Tuesday in England, Scotland, Wales, and Northern Ireland. Meanwhile, Russia has granted approval for clinical trials to be held for the Chinese COVID-19 vaccine Ad5-Ncov.

Coronavirus update:

Worldwide, more than 67.2 million people have been confirmed infected and more than 1.53 million have died, according to Johns Hopkins University. Cases of the novel coronavirus in the United States have surpassed 15.3 million with more than 290,000 deaths.

Technical Outlook

EUR/USD: The currency pair trading unchanged following better-than-expected German and Eurozone economic data.

The important levels to watch for today: Support- 1.2080 and 1.2040 Resistance- 1.2140 and 1.2180.



Dollar Index: The US dollar slightly recovered from the lowest level in over 2 years. At the time of writing, the pair hovers near 90.80 zones.

The important levels to watch for today: Support- 90.60 and 90.40 Resistance- 91 and 91.50.

Quote of the day: An investor’s worst enemy is not the stock market but his own emotions.

Read more- https://gulfbrokers.com/en/daily-market-report-224

 

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The UK started vaccinating its population against coronavirus on Tuesday, becoming the first country to start distributing the Pfizer-BioNTech vaccine after regulators approved its use last week. Tuesday was declared “V-Day” as the United Kingdom launched its COVID-19 vaccination program.

The first recipient was a 90-year-old woman named Margaret Keenan the first person in the world to receive the Pfizer/BioNTech coronavirus vaccine as part of a mass vaccination program. "My advice to anyone offered the vaccine is to take it. If I can have it at 90, then you can have it too," she said.

EQUITIES

Wall Street ended higher on Tuesday lifted by positive vaccine news from Pfizer and Johnson & Johnson. On Tuesday, Johnson & Johnson (NYSE: JNJ) said it could obtain late-stage trial results for a single-dose vaccine earlier than expected. On the other hand, the Trump administration proposed a new package worth $916 billion, which bipartisan leaders have hailed as progress.

OIL

Crude oil prices fell during the early Asian session after weaker-than-expected API inventory data. The API data showed an increase of 1.141 million barrels of crude oil in the U.S. crude oil inventories for the week ending Dec. 4.

CURRENCIES

In the currency market, the EURO trading steady on Thursday supported by the weaker dollar while the long-term direction of the currency pair depends upon Thursday’s ECB monetary policy meeting.

GOLD

Gold prices retreated lower from the previous session highs. The gold traders and investors await the FDA approval for emergency use of Pfizer's COVID-19 vaccine. On Thursday, the Vaccines and Related Biological Products Advisory Committee, an advisory group, will discuss the vaccine in an open public meeting.

Economic Outlook

On the data front, China's consumer price index (CPI), dipped 0.5% year on year in November, the National Bureau of Statistics said Wednesday.

During the European session on Wednesday, Germany released the latest trade balance data. The trade surplus rose to a seasonally adjusted EUR 18.2 billion from EUR 17.6 billion in the previous month.

Coronavirus update:

Worldwide, more than 67.8 million people have been confirmed infected and more than 1.5 million have died, according to Johns Hopkins University. The U.S. leads with 291,407 deaths. Brazil comes second with 177,400. India’s deaths are at 141,340; Mexico is with 110,074 deaths, and the U.K is with 62,033.

Technical Outlook

GBP/USD: The currency pair trading extra volatile ahead of meeting between UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen on Wednesday.

The important levels to watch for today: Support- 1.3340 and 1.3290 Resistance- 1.3440 and 1.3500.

GOLD: The gold price overall momentum remains mixed on Wednesday. During the previous session, the yellow metal hit a fresh weekly high of $1875.

The important levels to watch for today: Support- 1850 and 1820 Resistance- 1875 and 1900.

Quote of the day: When a beginner wins, he feels brilliant and invincible then he takes wild risk and losses everything – Alexander Elder.

Read more- https://gulfbrokers.com/en/daily-market-report-225

 

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DoorDash, the US largest food delivery company shares began trading on Wednesday on the New York Stock Exchange (NYSE) under the ticker DASH. The opening price was $ 182, about 80% higher than the public price of $ 102, and ended the session at $ 189.51. The company with a market value of $ 15 billion at the beginning of the year, reached $ 72 billion after the public offering.

"If we can make ice delivery possible before 'it melts, or pizza before it cools, or groceries in an hour, we can make it happen on-demand delivery of anything in a city, " – DoorDash CEO, Tony Xu said.

DoorDash is a privately held company founded in 2013 and based in San Francisco, California. The delivery firm reported a profit of $23 million in the second quarter this year but followed that with a $43 million loss in the third quarter. While the company revenue for the third quarter ended September reached US$879 million, up from US$239 million in a similar period last year. The company serves more than 18 million consumers and 390,000 merchants and fields over 1 million delivery personnel, known as Dashers.

“The funding from the IPO will let DoorDash expand into areas like delivery from groceries and convenience stores” – DoorDash, COO Christopher Payne said.

The food delivery industry benefited largely from the COVID-19 pandemic. The pandemic has boosted sales of food delivery companies, with restaurants shuttered, more people staying home and ordering takeout food. DoorDash provides on-demand delivery and logistics services to local and national businesses in more than 4,000 cities and all 50 states across the United States, Canada, and Australia. On the other hand, the delivery firm recently said it reduced commissions for the smallest restaurants during the pandemic, but the fees will likely remain an issue.

 

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Today’s session in Europe will see most its attention turns toward important ECB Monetary Policy Statement which is set to be released at 12:45 GMT. Along with this release will see the ECB president Christine Lagarde Conference 45-minutes after at 13:30. During the last meeting, the ECB last left monetary policy unchanged. The market participants expect the central bank will increase and extend its pandemic bond-buying program.

EQUITIES

US stock futures recovered from the previous session losses as investors widely expected on Thursday, a Food and Drug Administration advisory panel to authorize emergency use of Pfizer's COVID-19 vaccine.

OIL

Crude oil prices trading unchanged on Thursday. During the previous session, the EIA reported the biggest weekly supply rise since April. The data showed a 15.19-million-barrel build in crude inventories in the week ended December 4th.

CURRENCIES

In the currency market, it is a big day for the EURO and the currency pair hovers near 1.2100 level ahead of the ECB's monetary policy decision. While the Australian dollar surged to a fresh monthly high of 0.7492 during the European session boosted by the weaker dollar.

GOLD

Gold prices extend lower on Thursday after U.S. lawmakers failed to come to an agreement over a proposed stimulus package.

Economic Outlook

On the data front, the UK Gross domestic product increased by 0.4% month-on-month, slower than the 1.1% growth seen in September.

On the post-Brexit front, the meeting between Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen produced no deal on Wednesday and both decided to try to reach an agreement by the weekend.

Moving ahead today, the important events to watch:

Eurozone - ECB interest rate decision and statement: GMT – 12.45

US - initial jobless claims report: GMT – 13.30

US - Consumer Price Index: GMT – 13.30

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 68.4 million. In Europe, 221,551 new cases were recorded in the past 24 hours and another 43,803 patients were identified in Southeast Asia. The United States has passed 15.1 million confirmed cases, with more than 286,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

NZD/USD: The currency pair slightly rebounded from the previous session losses. Meanwhile, the overall momentum remains mixed after the pair failed to break previous weekly highs.

The important levels to watch for today: Support- 0.7000 and 0.6960 Resistance- 0.7065 and 0.7110.



GOLD: The gold price slipped back to near the weekly low of $1821 on Wednesday. Any break below $1820 will open the doors to $1800/1790 zones. On the other hand, the immediate resistance at 1842/48.

The important levels to watch for today: Support- 1821 and 1806 Resistance- 1842 and 1850.



Quote of the day: Having a trading discipline is the beginning, keeping discipline is the process, and staying discipline is a success.

Read more- https://gulfbrokers.com/en/daily-market-report-226

 

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After the phenomenal listing of US food-delivery firm DoorDash. On Thursday, the home-rental company Airbnb made a spectacular debut on NASDAQ under the symbol ABNB. The $ABNB surged from its IPO price of $68 to closing of $144.71 on Thursday, up by 113% from the offer price. The company's market value ($ 86.5 billion) makes it the largest player in the online travel sector.

“I don’t think I am going to worry much more, in April and May when we saw our business drop 80% in 8 weeks in the middle of the pandemic. I am so grateful to be here today, so fortunate and I wouldn’t be here for all the people who helped us, our guests, our hosts and everyone that has helped build Airbnb.” Airbnb CEO, Brian Chesky said.

Airbnb reported last quarter net profit of $US219 million ahead of its listing, as it cut its costs, but it expects a decline in bookings and a rise in cancellations during the fourth quarter.


EQUITIES

European and UK stocks trading lower on Friday following the negative comments from UK prime minister Boris Johnson. He said there was "a strong possibility" Britain and the EU would fail to strike a trade deal. Boris will meet European Commission President Ursula von der Leyen again on Sunday after Wednesday's trade talks ended with no breakthrough for a trade agreement.

OIL

Crude oil prices climbed to fresh weekly highs boosted by the positive vaccine news. The price of Brent crude reached more than $US50 a barrel for the first time since oil prices slumped in March.

CURRENCIES

In the currency market, the Australian dollar climbed to 2.5 years high on Friday. The recent bullish rally supported by the weaker dollar and strong crude oil price. Meanwhile, the British pound slipped to a fresh session low of 1.3242 after post-Brexit trade talks were extended to the weekend.

GOLD

Gold prices struggling to find the upside momentum after an advisory panel to the US FDA recommended approval of Pfizer’s COVID vaccine for emergency use.

Economic Outlook

On the data front, the US Labor Department said its consumer price index rose 0.2per cent in November after being unchanged in October. While the US initial jobless claims had surged last week by 137,000 to 853,000, while analysts expected an increase to 725,000.

On Thursday, European Central Bank holds interest rates at historic lows and the central bank will extend its bond-buying program by 9 months and add 500 bill euro to pandemic bond purchases.

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 70 million. The United States has passed 15.3 million confirmed cases, with more than 289,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD: The currency pair retreated back to near 1.2100 zones on Friday after the pair failed to break last weekly highs of 1.2175.

The important levels to watch for today: Support- 1.2110 and 1.2080 Resistance- 1.2150 and 1.2175.

GOLD: The gold price hovers near the $1830 level on Friday. Overall, the momentum remains bearish throughout the European session.

The important levels to watch for today: Support- 1825 and 1818 Resistance- 1842 and 1850.

Quote of the day: Stick to your investment strategy, do not turn temporary declines into permanent losses- Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-227