Daily Market Report by GulfBrokers 2020-2021

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The New Zealand dollar climbed to a new fresh year high of 0.8900 on Wednesday after the Reserve Bank of New Zealand launched additional stimulus and the positive comments from Governor Adrian Orr. The central bank held the official cash rate (OCR) steady at 0.25 per cent and Governor Adrian Orr said the rates will remain unchanged at 0.25% until next year. The governor also said the policymakers expect the economy to fall into recession early next year,

EQUITIES

Wall Street ended mixed on Tuesday, the Dow Jones closed in positive territory while Nasdaq Composite and S&P 500 ended slightly lower as investors concerns about surging COVID-19 cases in the United States.

OIL

Crude oil prices trading strong on Wednesday lifted by the latest reports suggesting that OPEC+ is considering delaying the production cut agreement as well as hopes for a COVID-19 vaccine. On the other hand, the American Petroleum Institute reported a draw of 5.147 million barrels for the week ending November 6.

CURRENCIES

In the currency market, the British pound continues to trade volatile. The currency pair rose to a new weekly high of 1.3310 during the European session after the positive comments from UK government officials about the post-Brexit trade agreement with the European Union.

GOLD

The gold price closed slightly higher on Tuesday supported by the continued rise in the number of fresh cases of coronavirus across the US and Europe.

Economic Outlook

On the data front, US JOLTS Job Openings increased by 84,000 from a month earlier to 6.4 million in September 2020, missing market expectations of 6.5 million. The German economic sentiment contracted to 39 in November from 56.1 in the previous month, while the assessment of the current situation came in at -64.3, down from -59.5.

Moving ahead to the North American session, the investors and traders will closely monitor the speech from ECB President Christine Lagarde. On Tuesday, the European Parliament and EU governments agreed the details of the 2021-2027 EU budget, is a crucial step for the activation of the bloc’s 1.8 trillion-euro recovery package.

Coronavirus update:

Worldwide, more than 50 million people have been confirmed infected and more than 1.26 million have died, according to Johns Hopkins University. The United States has passed 10.1 million confirmed cases, with over 238,000 deaths from COVID-19, the highest numbers in the world. Meanwhile, France reported 22,180 new infections over the last 24 hours and 472 new deaths.

Technical Outlook

EUR/USD:
The currency pair remained under pressure after the US dollar gained bullish momentum following the news about the vaccine.

eurusd


The important levels to watch for today: Support- 1.1760 and 1.1710 Resistance- 1.1850 and 1.1890.

GOLD: The yellow metal hovers near the $1880 area on Wednesday after it dropped more than 5% in a single day on Monday.

gold neww


The important levels to watch for today: Support- 1860 and 1848 Resistance- 1885 and 1892.

Quote of the day: Do not save what is left after spending but spend what is left after saving – Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-206
 
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The US dollar index trading slightly lower ahead of the release of US Consumer Price Index figures. The index climbed to a fresh session high of 93.20 during the previous session boosted by reports of positive results from Pfizer's COVID-19 vaccine trials. During the European session, Germany released the final October CPI data. The data showed the consumer prices dropped 0.2% from a year earlier in October 2020.

EQUITIES

Global stocks trading mixed on Thursday as concerns over the economic fallout from mounting coronavirus infections in Europe and the US outweighed positive vaccine news.

OIL

Crude oil prices trading lower on Thursday after it gained more than 10% during this week following reports of a promising COVID-19 vaccine by Pfizer. On the other hand, Algeria’s energy minister said on Wednesday that OPEC+ could extend current production cuts of 7.7 million bpd into 2021.

CURRENCIES



In the currency market, the British pound retreated back to below 1.3200 zones after mixed UK economic data and UK Chancellor Rishi Sunak warned that the latest lockdown measures had likely slowed growth even more since then.

GOLD

The gold price trading sideways from last two days after the big one-day drop. Overall, the momentum remained bearish throughout this week.

Economic Outlook

On the data front, UK Q3 preliminary GDP numbers which came in at +15.5% vs +15.8% q/q expected while the manufacturing production in the United Kingdom fell 7.9% year-on-year in September of 2020. During the Asian session, Japan released the latest Machinery Orders data. The data showed the orders decreased by 11.5% YoY after falling by 15.2% YoY in the previous month.

On Wednesday, the European Central Bank President Christine Lagarde said policymakers will focus on more emergency bond purchases and cheap loans for banks when it puts together its new stimulus package next month.

Moving ahead today, the important events to watch:

US – Initial jobless claims: GMT – 13.30

US – Consumer price index: GMT – 13.30

US –EIA crude inventories: GMT – 16.00

Coronavirus update:

Worldwide, more than 51 million people have been confirmed infected and more than 1.27 million have died, according to Johns Hopkins University. The U.S. has reported close to 10.4 million cases and more than 240,000 deaths, according to Johns Hopkins University data. India has reported 48,285 fresh Covid-19 cases in the past 24 hours and the country's death toll has mounted to 128,164.

Technical Outlook

NZD/USD:
The currency pair slightly retreated after it hit a fresh session high of 0.8910 during the Asian session. At the time, the pair trades at 0.6870. If the bearish momentum continues the next downside levels to watch 0.6840 and 0.6800.

euraud


The important levels to watch for today: Support- 0.6840 and 0.6800 Resistance- 0.69 and 0.6930.

GOLD: The yellow metal trading below $1870 during the European session ahead of US CPI and jobless claims data.

gold neww


The important levels to watch for today: Support- 1860 and 1848 Resistance- 1880 and 1890.

Quote of the day: Investing isn’t about beating others at their game. It's about controlling yourself at your own game – Benjamin Graham.

Read more- https://gulfbrokers.com/en/daily-market-report-207
 
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As the ride-hailing companies still struggling during this pandemic period, the San Francisco-based company LYFT (NASDAQ: LYFT) announced it will soon be entering the food-delivery business. The $LYFT stock surged more than 6% on Tuesday after the news.

Lyft’s president John Zimmer said the company plans to offer a new format delivery service for restaurants without launching a full-fledged consumer-facing platform for food delivery.

“This delivery model plays to our strengths, including making full use of our existing technology, it is very early days, but we look forward to updating you on our progress as we continue exploring this path.” Lyft’s president John Zimmer said.

On the other hand, the ride-hailing giant posted a loss of $459.5 million in its third-quarter on Tuesday while revenue came better-than-expected. The company reported US$499.7 million in sales for the quarter and slightly beat the Wall Street estimates but still 48 per cent lower than the same period in 2019. The company said the active riders had risen to 12.5 million from 8.7 million in the previous quarter but dipped 44% from the year before.

  • Earnings per share: -$1.46 vs. -$0.91 expected
  • Revenue: $499.7 million vs. $486.4 billion expected
“We believe the vaccine will accelerate our recovery, as the economy recovers and people get out again, it directly correlates” to Lyft’s performance,” Zimmer said.

Read more- https://gulfbrokers.com/en/lyft-has-unveiled-plans-for-their-food-delivery-service
 
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Global stocks and oil prices retreated from the fresh weekly highs as the new coronavirus cases climbed to record high in US and UK. The UK has become the first country in Europe to cross 50,000 Covid-19 related deaths and reported the biggest one-day jump in coronavirus infections on Thursday. In the US, the seven-day-average of new daily cases currently stands above 125,000, more than 65,000 people are hospitalized

"We may be tired of Covid-19, but it is not tired of us” – WGO chief Tedros Adhanom Ghebreyesus said.

EQUITIES

Asian shares traded lower on Wednesday followed by Wall Street closed negative during the previous session after several U.S. states started to re-impose coronavirus-related restrictions. On the earnings front, Cisco (NASDAQ: CSCO) stock climbed more than 7% in after-hours trading after the company reported better-than-expected last quarter financial results.

· Earnings per share: $0.76 vs. $0.70 expected

· Revenue: $11.93 billion vs. $11.85 billion expected


"We see many great opportunities ahead as every company in every industry is accelerating its digital-first strategy." Cisco CEO Chuck Robbins said.

OIL

Crude oil prices edge lower on Friday after EIA crude inventories rose by 4.278 million barrels in the week ended November 6th, 2020, following a 7.998 million drop and surging virus cases across Europe and the US and Europe.

CURRENCIES

In the currency market, the commodity currencies both the Australian dollar and New Zealand dollar slipped to fresh session lows during the Asian session after Crude oil prices dropped for the second consecutive day.

GOLD

On Thursday, the gold price closed slightly higher boosted by the latest reports showing spikes in coronavirus cases in several parts across the world.

Economic Outlook

On the data front, US CPI fell to 1.2% in October of 2020 from 1.4% in the previous month and below market expectations of 1.3%. Meanwhile, the U.S. Department of Labor reported that the U.S. Initial Jobless Claims came by 709k, lower than 735k anticipated.

On Thursday, US Federal Reserve Chair Jerome Powell noted that near-term risks remain as the disease continues to spread unchecked. He said the economic outlook remained uncertain even after positive coronavirus vaccine news.

Moving ahead today, the important events to watch:

EUROZONE – GDP: GMT – 10.00

US – Producer price index: GMT – 13.30

Technical Outlook

EUR/USD:
The currency pair recovered from the previous session lows and trading steady above 1.18 on Friday ahead of Eurozone GDP numbers.

eurusd


The important levels to watch for today: Support- 1.1780 and 1.1750 Resistance- 1.1825 and 1.1860.

GOLD: The precious metal trading in a range between $1855 and 1855 from last two days after hitting the fresh weekly low of 1850 on Monday.

gold neww


The important levels to watch for today: Support- 1872 and 1860 Resistance- 1884 and 1890.

Quote of the day: Profits can be made safely only when the opportunity is available and not just because they happen to be desired or needed- Gerald M Loeb.

Read more- https://gulfbrokers.com/en/daily-market-report-208
 
Dollar Index
Resistance: 92.40 and 92 Support: 93.20 and 93.90
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EURUSD
Support: 1.1760 and 1.1690 Resistance: 1.1890 and 1.1930
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NZDUSD
Support: 0.6820 and 0.6780 Resistance: 0.6900 and 0.6940
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GOLD
Support: 1860 and 1830 Resistance: 1910 and 1930
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China and Japan reported strong economic data. On the Earnings front, JD.com and Vodafone posted last quarter results.

Moving ahead there are other few key events to watch

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An IPO is like a negotiated transaction – the seller chooses when to come public – and it is unlikely to be a time that’s favourable to you – Warren Buffet.

An initial public offering (IPO) is the first time a company offers its shares for sale to general investors. Once the IPO is done, the shares of the firm are listed and can be traded freely in the open market. Moving forward to 2021, there is a solid pipeline of companies preparing for capital raises through IPOs, with Airbnb expected to lead the headlines.

Some of the IPOs that were launched last year performed great during the initial days, but the lockdown announced damaged the share price significantly. While comparing to 2019, the public listings witnessed drastic drop this year as the companies are finding it decidedly more difficult to predict financial performance over the coming year and beyond.

Here are the successful and unsuccessful US IPOs in 2019:

TABLE



After a big drop-in IPO activity in the first half of 2020 due to the COVID-19 pandemic, the listing activity certainly picked up. Many more companies are racing to go public after the stock market came roaring back from May onwards.

These are the few notable IPOs launched after the second quarter of 2020.

  • Lemonade (NYSE: LMND)
  • Unity Software (NYSE: U)
  • Warner Music Group (NASDAQ: WMG}
  • Snowflake (NYSE: SNOW)
  • Eargo (NASDAQ: EAR)
  • Palantir Technologies (NYSE: PLTR)
  • CureVac (NASDAQ: CVAC)
  • Berkeley Lights (NASDAQ: BLI)

Among these above IPOs, California based Cloud-based data warehouse firm Snowflake was the real crowd winner. The IPO ended up being the largest software IPO ever, raising nearly $3.4 billion and being valued at $33.2 billion before trading started on the public markets. The stock surged 104%, opening at $245 per share and closing its first day of trading at $253.93, nearly 112% above its IPO price.

Factors to consider before investing in an IPO



Understand the purpose of raising funds: As we know even there are different techniques to raise funds including acquisition, but IPOs are considered to be the best way to raise funds for the company. So, try to look for the answer, where will the funds be used? This will help you to know the direction the company will take.

Check the Past performance and background of the Company offering the IPO: Understand the business and its prospects, financials, and competitive landscape.

Understand the valuation of the company: Use different techniques like return on equity ratio and price to earnings ratio to know the valuation of the company and compare the results with existing companies in the same industry.

Review the Profitability projections: consider factors like revenue growth, profitability or profit potential and competitive advantages.

Before pumping a huge sum of money into IPO, you should be aware that not every upcoming IPO is a great opportunity. So, it is important to understand some basics and the timing because a poorly timed IPO can be difficult to overcome.

Read more- https://gulfbrokers.com/en/ipo-market-picked-up-after-the-big-drop-in-q1
 
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The electric-car maker TESLA (NASDAQ: TSLA) shares climbed more than 11% in pre-market trading on Tuesday after the S&P global announced that Tesla will join the S&P 500 come Monday, Dec. 21. “Tesla will be one of the largest weight additions to the S&P 500 in the last decade, and consequently, will generate one of the largest funding trades in S&P 500 history,” S&P DJI said in a statement.

EQUITIES

Asian markets ended higher on Tuesday supported by positive vaccine news. On Wall Street, The S&P 500 rose 1.2%, while the Nasdaq Composite rose 0.8%. On the earnings front, Walmart (WMT) and Home Depot (HD) report last quarter financial results early Tuesday.

OIL

Crude oil prices trading steady as the news on the vaccine fuelled the hopes of the global oil demand recovery outlook. Meanwhile, today the oil investors and traders waiting for the OPEC+ Meeting outcome.

CURRENCIES

In the currency market, the British pound trading higher ahead of the Bank of England Governor Andrew Bailey's speech. On the other hand, Britain's chief negotiator David Frost has told Prime Minister Boris Johnson to expect an agreement as soon as early next week.

GOLD

Gold price rebounded from the previous session losses. On Monday, the yellow metal slipped to fresh weekly low following more upbeat news on the coronavirus vaccine.

Economic Outlook

On the data front, the Reserve Bank of Australia released the last meeting minutes. The minutes showed the board members emphasizing that monetary and fiscal stimulus would be needed for a considerable time, pledging not to raise interest rates for at least three more years.

On Monday, the American biotechnology company Moderna (NASDAQ: MRNA) said early results showed its candidate was 94.5 per cent effective. "This is a pivotal moment in the development of our COVID-19 vaccine candidate” Stephane Bancel, CEO of Moderna said. Moderna shares closed more than 9% higher on Monday.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 13.30

UK – BoE’s Governor Bailey Speech: GMT – 14.00

US –Industrial production: GMT – 14.15

Coronavirus update:

Worldwide, more than 54 million people have been confirmed infected and more than 1.3 million have died, according to Johns Hopkins University. The cases of the coronavirus in the United States have surpassed 11.5 million with more than 252,000 deaths.

Technical Outlook

EUR/USD:
The currency pair trading steady above 1.1850 on Tuesday. Overall, the momentum remained bullish throughout the European session.

eurusd


The important levels to watch for today: Support- 1.1810 and 1.1780 Resistance- 1.1890 and 1.1930.



GOLD: The precious metal trading sideways and hovers near the $1890 level ahead of the US retail sales data.

gold neww


The important levels to watch for today: Support- 1884 and 1874 Resistance- 1892 and 1900.

Quote of the day: The elements of good trading are: 1. Cutting losses, 2. Cutting losses, and 3. cutting losses. If you can follow these three rules, you may have a chance – Ed Seykota.

Read more-https://gulfbrokers.com/en/daily-market-report-210
 
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US Dollar Index dropped back to near the crucial support zone. The Index extends lower on Wednesday following the weaker-than-expected US retail sales figures. The greenback started this week on a Positive note but later retreated back to lower in response to optimistic news regarding the development of a vaccine against coronavirus.

While US Fed Chair Jerome Powell said on Tuesday, "Using all of our tools to support the recovery for as long as it takes until the job is well and truly done,"

EQUITIES

Wall Street ended lower on Tuesday as investors remain concerned on worsening coronavirus conditions in the US and the delay in the release of a US COVID-19 aid package. On the earnings front, Target (NYSE: TGT) and NVIDIA (NASDAQ: NVDA) will report last quarter financial results today.

OIL

Crude oil prices rebounded from the early session lows. The oil slipped in the Asian session after API data showed a larger-than-expected rise in US inventories.

CURRENCIES

In the currency market, the British pound climbed to near the previous week high lifted by strong UK inflation figures and the currency pair also supported by the news that a deal between the UK and the EU within the framework of Brexit may be concluded next week.

GOLD

Gold price trading slightly lower on Wednesday following the positive comments from the FED members. Federal Reserve Vice Chairman Richard Clarida said the chances of economic recovery in the US have increased, thanks to the successful testing of candidates by Moderna and Pfizer Inc.

Economic Outlook

On the data front, Japan's Exports declined by only 0.2% YoY after falling by 4.9% YoY in the previous month and imports decreased by 13.3 per cent. On the other hand, US retail sales were up by 0.3% from September 2020 and came below the expectations of 0.5% and lower than the previous month of 1.6%.

On the stimulus front, U.S. Senate Majority Leader Mitch McConnell says he is open to a $500 billion package aimed at alleviating economic pain from the coronavirus pandemic.

Moving ahead today, the important events to watch:

US – Building permits: GMT – 13.30

CANADA – Consumer price index: GMT – 13.30

US –Crude oil Inventories: GMT – 15.30

Coronavirus update:

As of Tuesday, there have been more than 54.5 million positive COVID-19 tests across the world, according to a running tally by Johns Hopkins University. The United States has passed 11.2 million confirmed cases, with over 247,000 deaths from COVID-19, the highest numbers in the world. Turkey reported 3,819 new patients and 103 deaths on Tuesday, taking the confirmed death toll since the start of the outbreak to 11,704. The country is re-introducing a series of restrictions, including partial weekend lockdowns.

Technical Outlook

EUR/USD:
The currency pair hovers near the short-term resistance level 1.1890. If the bullish momentum continues the next upside to watch 1.1910 and 1.1930. On the downside, the immediate support at 1.1850.

eurusd


The important levels to watch for today: Support- 1.1850 and 1.1810 Resistance- 1.1890 and 1.1930.



GOLD: The precious metal trading below $1880 level. Overall the momentum remained bearish throughout the European session.

gold neww


The important levels to watch for today: Support- 1874 and 1860 Resistance- 1885 and 1900.

Quote of the day: When purchasing depressed stock in troubled companies, seek out the ones with the superior financial positions and avoid the ones with loads of bank debt- Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-211
 
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