Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

Global equity and cryptocurrency markets ended higher last week as investors digested mounting uncertainties around Russia-Ukraine talks. Moving ahead to this week, there are no important economic reports scheduled to be released in the U.S. this week except the Durable goods orders data which is set to be released on Thursday. On the other hand, Investors should also closely monitor the speeches from the Fed policymakers, ECB President Christine Lagarde and Fed Chair Jerome Powell.

On the earnings front, the companies due to release their results will be Nio, Adobe, and Nike will be among those reporting earnings this week.

GOLD

The safe-haven metal remained under pressure despite the weaker US dollar after the US Federal Reserve officials hinted at the possibility of six more increases this year and three more next year. Meanwhile, the metal was moderately up on Monday morning in Asia, with investors turning to safe-haven assets as concerns over the impact of the new wave of Covid infections triggered fresh lockdowns in China.

Technically the current price action signals suggest that the medium-term bearish trend remains intact. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 1912 and 1900/1890 if the bearish momentum continues. On the flip side, the first immediate resistance near 1950 followed by 1980/2000.

DOLLAR INDEX

The US dollar index which measures the greenback against major peers retreats following the announcement of the first interest rate hike since 2018 by the Federal Reserve. The Index is expected to fall further this week if the last week's selling pressure continues.

Technically the overall momentum remained bearish for the Index after the bulls failed to extend the rally. In the short term, if the price breaks below 97.70 it would open doors towards 97.10. On the bullish side, the resistance stays above 98.70, and a break above this exposes the Index towards the 99.10/30 level.

EURUSD

EURUSD traded with a bid tone for the entire last week, with some weakness seen only on the Friday after the King dollar regained some upside momentum. The pair has shown strength so far this week supported by the modest dollar weakness. This week the Euro traders are likely to return their focus back to fundamentals with manufacturing PMI data from Germany and Eurozone on Wednesday and Friday’s German IFO business climate report.

For this week, 1.1000 remains the key support area to watch, any break and close below this level will open 1.1950 minimum. On the upside, the nearest resistance level for the pair is located at 1.1090. In case EURO gets above this level, it will head towards the next resistance at 1.1145. A successful test of the resistance at 1.1145 will open the way to the test of the resistance at 1.1200/20.

DOW JONES

The Dow Jones futures started the new week slightly lower after Ukraine’s rejection of Russia’s demand to surrender Mariupol hints at intensifying war conditions. During the last week, the Dow Jones posted strong weekly gains supported by hopes for a peaceful resolution of the conflict between Russia and Ukraine.

The technical scenario is absolutely bullish after the last week's strong bullish sentiment. While considering the recent upside momentum the Dow currently hovers near the short-term trendline resistance. In case the pair manages to settle above the trendline, it will gain upside momentum and head towards the next resistance level at 35,050 and 35,500. On the downside, in the short-term the first immediate support at 34,450 followed by 34,050.

Read more- https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-22

 

[syamfx2020]

The king dollar hit a six-year high against the Japanese yen on Tuesday, at 120.90. The strong recent strong upside momentum was boosted after the U.S. Federal Reserve hinted at further raising its key interest rate. On Monday, Fed Chair Jerome Powell said that he would be open to a 50 bp hike if conditions warranted it.

“If we conclude that it is appropriate to move aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so.” – Powell said.

EQUITIES

European shares started today slightly higher while the overall momentum remains mixed as the Russia-Ukraine war as ongoing peace talks failed to progress. On the other hand, the investors are waiting for the speech from ECB President Christine Lagarde. On Monday, Lagarde said - “In the short, medium-term, it will be of an inflationary nature. Whereas in the long term, forces on prices will be rather deflationary, she said.

OIL

Crude oil futures retreat from the early session highs. During the early morning session, the oil futures climbed to a fresh weekly high as the EU is discussing a wide ban on the purchase of Russian oil. Moving ahead, the oil traders should closely monitor the release of API crude inventories data.

CURRENCIES

In the currency market, the EURUSD remains under pressure following the comments from the European Central Bank (ECB) Vice President Luis de Guindos. Meanwhile, the US Dollar was boosted by surprisingly hawkish comments from Federal Reserve Chair Jerome Powell that lifted Treasury yields across the curve.

GOLD

The safe-haven metal struggling to find the upside momentum. The metal dropped to a fresh session low of $1921.50 on Tuesday morning driven by the strong US dollar. At the time of writing, the precious metal trades were above $1928.

Coronavirus update:

Worldwide, more than 470 million people have been confirmed infected and more than 6.09 million have died. The United States has confirmed over 79.7 million cases and has had more than 970,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: For today, the pair is supported at 1.0950 level, any break below this level will open the doors to 1.0930 and 1.0900. On the flip side, if the euro breaks above 1.1030 it would open doors towards the next resistance area of 1.1070.

The important levels to watch for today: Support- 1.0950 and 1.0930 Resistance- 1.1030 and 1.1070.

GOLD: The key resistance is located above $1940, a break above this level will confirm a possible move to $1955. On the downside, if the metal loses the $1920 handle, then we expect a move toward $1912/08.

The important levels to watch for today: Support- 1920 and 1912 Resistance- 1932 and 1940.

Quote of the day - Volatility is greatest at turning points, diminishing as a new trend becomes established – George Soros.

Read more - https://gulfbrokers.com/en/daily-market-report-465

 

[syamfx2020]

Shares of the sneaker giant Nike (NYSE: NKE) surged more than 6% on Tuesday after the company released better-than-expected third quarter (Q3) financial results. The strong Q3 results were boosted by the robust holiday demand and digital business. Nike Brand Digital sales increased 19% led by 33% growth in North America.

• Earnings per share (EPS) $0.87 vs. $0.71 expected
• Revenue $10.87 billion vs. $10.59 billion expected

“NIKE’s strong results this quarter show that our Consumer Direct Acceleration strategy is working, as we invest to achieve our growth opportunities” – Nike CEO, John Donahoe said. “We have the right playbook to navigate volatility and create value through our relentless drive to serve the future of sport” – he added.

Nike reported revenue of $10.9 billion for the quarter ended Feb. 28, up 5% from the same period a year earlier. The company's North America revenue rose 9% in the third quarter while revenue in Greater China fell 8%.

Shares of Nike jumped 5.9 percent to $137.85 in after-hours trading following the earnings announcement. However, the stock is down almost 20% this year.

Read more - https://gulfbrokers.com/en/nike-stock-pops-on-strong-digital-sales-growth

 

[syamfx2020]

The US electric car maker Tesla (NASDAQ: TSLA) stock closed almost 8% higher on Tuesday after the company has officially opened its new car plant in Germany and started shipping electric vehicles. Tesla stock closed at 993$ on Tuesday.

Tesla has delivered the first batch of Model Y cars from its new factory to clients in Germany on Tuesday. The factory is set to produce 500,000 electric vehicles annually, and batteries for the cars. The company is also planning to double its annual production output to nearly 2 million cars this year.

"This is a great day for the factory, it is another step in the direction of a sustainable future" – Tesla CEO, Elon Musk said.

EQUITIES

Asian shares and U.S. stock futures rose on Wednesday as investors tried to shake off worries about the Russia and Ukraine tensions. Wall Street ended higher on Tuesday supported by the tech and EV stocks rally.

OIL

Crude oil futures slightly recovered from the previous session losses following the release of API crude inventory data. The data showed the US crude stocks fell by 4.3 million barrels for the week ended Mar. 18, following a 3.8-million-barrel rise in the previous week.

CURRENCIES

In the currency market, the US dollar index closed lower on Tuesday after the index failed to break above the psychological resistance of 99.00. The Index started this week with strong upside momentum boosted by the prospects for further tightening of the US Federal Reserve's monetary policy.

GOLD

The safe-haven metal rebounded back to above $1920 but overall sentiment remains bearish throughout this week after the hawkish speech of the head of the US Federal Reserve, Jerome Powell.

Economic Outlook

On the data front, UK inflation reported higher-than-expected. The inflation increased to 6.2% in February of 2022 from 5.5% in January and above market forecasts of 5.9%.

Moving ahead today, the important events to watch:

US – New home sales: GMT – 14.00

US – EIA crude inventories: GMT – 14.30

Coronavirus update:

Worldwide, more than 470 million people have been confirmed infected and more than 6.09 million have died. The United States has confirmed over 79.7 million cases and has had more than 970,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: For today, the immediate support for the Euro stands near the level of 1.0960. On the flip side, the first resistance at 1.1050 any break above this level will open 1.1100 minimum.

The important levels to watch for today: Support- 1.0990 and 1.0960 Resistance- 1.1045 and 1.1080.

GOLD: On the daily time frame, the gold is currently supported at $1910, and the resistance is around $1940. On the upper side, the long-term buyers should wait for a daily close above the $1950.

The important levels to watch for today: Support- 1918 and 1910 Resistance- 1936 and 1944.

Quote of the day - The good speculators always wait and have patience, waiting for the market to confirm their judgement.

Read more here - https://gulfbrokers.com/en/daily-market-report-466

 

[syamfx2020]

Chinese electric car-maker Nio (NYSE: NIO) is scheduled to announce the last quarter earnings report today after market close. The EV stock investors are eagerly waiting for the fourth-quarter earnings results from the Electric vehicle maker after the stock recently regain upside momentum. The stock is up 40% in the last 8 days and rebounded back to above $20. However, the overall momentum remains mixed as the stock hit its lowest level in 19 months last week.

Nio is expected to post quarterly earnings of -$0.14 per share and revenues are expected to be $1.53 billion.

$NIO key technical levels to watch today:

Support: $20.00 and $18.00

Resistance: $23.50 and $26.00

EQUITIES

Global stocks and Wall Street ended lower on Wednesday driven by weaker-than-expected macro-economic data and hawkish comments from several US Fed officials. San Francisco Fed Bank President Mary Daly stated that interest rates may settle around 2.5 percent, which will be required to contain soaring inflation.

OIL

Crude oil futures trade higher during the Asian session as the US President Joe Biden is set to meet NATO allies on Thursday and is expected to announce additional sanctions against Russia over its invasion of Ukraine.

CURRENCIES

In the currency market, the dollar index, which tracks the U.S. currency against six major peers holds steady ahead of US durable goods orders data. On the other hand, the British pound tinkered around just below the 1.3170 handles while the Euro slightly rebounded against the US dollar, following the release of better-than-expected German and Eurozone PMI data.

GOLD

The safe-haven metal hovers near the weekly highs despite strong US dollar movement. The recent upside momentum support after the US Treasury yields have experienced minor weakness. At the time of writing, the precious metal trades above $1940.

Economic Outlook

On the data front, U.S. new-home sales fell 2% to an annual rate of 772,000 in February, Census Bureau said Wednesday. Economists polled by MarketWatch expected new-home sales in February to drop to an annual rate of 805,000.

Moving ahead today, the important events to watch:

US – Durable goods orders: GMT – 12.30

US – Manufacturing PMI: GMT – 13.45

Coronavirus update:

Worldwide, more than 470 million people have been confirmed infected and more than 6.09 million have died. The United States has confirmed over 79.7 million cases and has had more than 970,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

DOLLAR INDEX: For today, If the bullish momentum continues then the next upside level is to watch 99.00 and 99.20. On the flip side, a breakdown through 98.20 would negate that bias and suggest a test of the 97.80 support region.

The important levels to watch for today: Support- 98.60 and 98.20 Resistance- 99.00 and 99.20.

GOLD: The yellow metal hovers above the $1940 area. If the bullish momentum continues the next upside levels to watch $1950 and $1955. On the downside side, $1920 is a crucial support area to watch.

The important levels to watch for today: Support- 1930 and 1912 Resistance- 1950 and 1955.

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-467

 

[syamfx2020]

"This is a real win for riders who will now have access to thousands of yellow taxis in the Uber app." - Uber’S director of business development, Guy Peterson.

Shares of the ride-sharing company Uber (NYSE: UBER) Jumped 5% on Thursday after the company has made a deal to list New York City taxis on its app, Creative Mobile Technologies, and Curb Mobile, to list the city’s yellow taxis on its app. Passengers will pay about the same for a taxi ride as for an Uber X ride. Taxis are already available in the Uber app in other countries, including Spain, Germany, and South Korea.

“I will tell you we wanna get every single taxi in the world onto our platform by 2025,” Uber CEO, Dara Khosrowshahi told to CNBC in February.

EQUITIES

Wall Street ended higher on Thursday supported by stronger-than-expected weekly jobless claims and manufacturing PMI figures. US manufacturing PMI increased to 58.5 in March of 2022 from 57.3 in February. European stocks are expected to start higher ahead of the German IFO business climate data.

OIL

Crude oil futures traded near the session low as the traders and investors wait for the next developments in the Ukraine-Russia crisis. On Thursday, the oil prices closed lower after no new oil sanctions against Russia emerged from the gathering of world leaders.

CURRENCIES

In the currency market, the British pound retreated from the early session highs following the release of weaker-than-expected UK retail sales numbers. The data showed UK retail sales fell 0.3% in Feb, reversing from a 1.9% rise in January and compared to market forecasts of a 0.6% increase.

GOLD

The safe-haven metal reversed from the previous highs after the buyers failed to hold upside momentum. At the time of writing, the metal trades near the $1950 area.

Economic Outlook

On the data front, the US durable goods orders fell by 2.2% in February after jumping by 1.6% in January, the Commerce Department reported on Thursday. On the other hand, the weekly US initial jobless claims slid to 187,000, a decrease of 28,000 from the previous week's revised level of 215,000.

Moving ahead today, the important events to watch:

Germany – IFO business climate: GMT – 09.00

US –Pending home sales: GMT – 14.00

Coronavirus update:

Worldwide, more than 470 million people have been confirmed infected and more than 6.09 million have died. The United States has confirmed over 79.7 million cases and has had more than 970,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: The currency pair trading steady above 1.10. For today, the currency pair should find near term support near 1.1000/1.0960 whereas resistance levels could be 1.1045/90.

The important levels to watch for today: Support- 1.1000 and 1.0960 Resistance- 1.1045 and 1.1090.

GOLD: For today the first support for the Gold appears to be around $1947, in the short-term any break below $1947 the next downside level is to watch $1936/30. On the other upper side, the immediate resistance around $1965 any break and close above this level will open $1975.

The important levels to watch for today: Support- 1947 and 1930 Resistance- 1965 and 1975.

Quote of the day - "It's not always easy to do what's not popular, but that's where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized." -John Neff.

Read more here - https://gulfbrokers.com/en/daily-market-report-468

 

[syamfx2020]

Google parent company Alphabet (NASDAQ: GOOGL) shares continued the rebound and crossed above $2800 this week. Alphabet shares have taken a hit since the company announced last quarter's earnings results. The stock dropped more than $500 from the post-earnings high of $3031.

Alphabet Q4 earnings review​

On the first week of Feb, the internet media agent announced a 20-for-1 stock split alongside its latest earnings report. Google stock spiked 9% in after-hours trading following the release of strong Q4 earnings. The Q4 revenue increased by 32% from the year earlier.

• EPS: $30.69 $27.34 expected
• Revenue: $75.33B $72.17B expected

“Q4 saw ongoing strong growth in our advertising business, which helped millions of businesses thrive and find new customers, a quarterly sales record for our Pixel phones despite supply constraints, and our Cloud business continuing to grow strongly,” Alphabet CEO, Sundar Pichai said during the earnings call.

$GOOGL stock Split: What you need to know?​

Alphabet surprised investors by announcing a 20-for-one stock split to occur on July 15. Google last made a stock split in 2014 for two-for-one. The split will make each share more affordable for individual investors as the current share price makes the stocks inaccessible to certain investors.

The split will happen on Friday, July 15th, 2022. Alphabet’s shareholders as of 1 July will receive 19 additional shares on 15 July for every share they hold. After the split, Alphabet stock will begin trading again on Monday, July 18th.

"The reason for the split is it makes our shares more accessible,” Alphabet’s CFO, Ruth Porat said.

$GOOGL technical outlook​

Technically the overall momentum remains bullish throughout the last couple of days. $GOOGL has reversed after the formation of triple bottom type formation near $2500 levels. The stock price has witnessed a sustainable upside bounce in the last week and the momentum continues this week as well.

Read more here -

$GOOGL back above $2800. Is it too late to buy?

Google parent company Alphabet (NASDAQ: GOOGL) shares continued the rebound and crossed above $2800 this week. The stock price has witnessed a sustainable upside bounce in the last week and the momentum continues this week as well.

gulfbrokers.com

 

[syamfx2020]

This week all eyes will be turning to the release of the US employment report on Friday. Economists are expecting that U.S. employers created 485,000 jobs last month, with the unemployment rate dropping to 3.7%. On the other hand, the final revisions to US and UK GDP numbers are also likely to catch the attention of investors.

On the earnings front, the companies due to release their results will be Chewy, Uipath, and the XPeng will be among those reporting earnings this week.

GOLD

The safe-haven metal regain upside momentum last week supported by rising inflation and tensions in Ukraine. While the upside momentum is limited the Fed’s preferred gauge for inflation is expected to increase for the sixth consecutive month. Moving ahead to this week, the gold investors should closely monitor the release of the US jobs reports and GDP data.

For this week, $1,930 is the immediate support level, followed by $1,920. If the pair breaks below the $1,920, the slump will quickly extend toward the $1,912/00 mark. On the upper side, gold is likely to find immediate resistance at $1,960, any break above the $1,960 level could lead the prices of the precious metal towards the next resistance levels of $1,975 and $1,990.

DOLLAR INDEX

The US dollar index traded higher last week boosted by the release of stronger-than-expected US macroeconomic data. The index has extended gains against a host of major currencies throughout last week except for the commodity currencies like the Australian Dollar and Canadian dollar. On Monday, The U.S. Dollar Index extended the gains and is hovering near the resistance level at 99.30.

This week, the key resistance is located for the index around 99.40, a break above this level will confirm a possible move to 100/100.40. On the downside, any meaningful pullback now seems to find some support near the 98.40 area, below which the slide could further get extended towards the 97.70/40 region.

EURUSD

EURUSD remained under pressure for the whole last week despite the release of strong manufacturing PMI data from the Eurozone and Germany. There are no important economic reports scheduled to be released on Monday, so the Euro traders should monitor the latest developments surrounding the Russia-Ukraine war.

For Euro, the first nearest support level is located at 1.0930. In case it breaks below this level, it will head towards the next support level which is located at near 1.0900 then 1.0890. On the upside, 1.1000 will act as an immediate and strong hurdle while 1.1050 will be a critical resistance zone because above this, bulls are likely to dominate.

DOW JONES

The Dow Jones ended flat last week despite the release of strong earnings and US economic data. For this week, the main drivers for the Index will be the continuation of the Ukraine-Russia peace talks and NFP data, and the OPEC meeting outcome.

For this week, 34,300 remains the key support area to watch, any break below this level will open 34,000/33,950 minimum. On the flip side, the bullish breakout of 35,000 is likely to push the metal into a new trading zone, which may offer further buying opportunities until 35,400/500.

Read the original report here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-23

 

[syamfx2020]

The Japanese Yen (JPY) continues to remain sensitive after the Bank of Japan intervened to stop government bond yields from rising above its key target. The BOJ bought bonds at a quarter percent on Monday after the yield on the benchmark 10-year Japanese government bond rose to 0.245 percent earlier Monday. The Japanese yen weakened to around a seven-year low of 125 against the US dollar.

The USDJPY price is also rising because of the strong dollar, the greenback hovers near its highest level in nearly two years on Monday. The currency pair could extend further gains amid improved market sentiment. Recently, Ukrainian President Volodymyr Zelensky told Russian journalists Ukraine was prepared to discuss adopting a neutral status as part of a peace deal with Russia

The US Dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the third most traded currency in foreign exchange markets after the U.S. dollar and euro. The US NFP data is the key release this week for the USDJPY. However, traders will also be watching the latest US GDP and personal income data which is set to be released on Thursday.

BOJ Intervention​

The Bank of Japan (BOJ) usually intervene in foreign exchange markets to maintain a stable value of the yen. Japan should intervene in the currency market or raise rates to defend the yen if it weakens beyond 130 to the dollar, the country's former top currency diplomat Eisuke Sakakibara said. “Current weak Yen positive for Japan’s economy, further weakening beyond 130 Yen would cause problems” - Sakakibara said.

USDJPY short-term and long-term review​

USDJPY reversed from the daily highs. At the time of writing, the USDJPY trades below 123.40. In the short-term, the first resistance is located for USDJPY remains above 125, a break above this level will confirm a possible move to 125.85/126.30. On the downside, any meaningful pullback now seems to find some support near the 123 zones, below which the slide could further get extended towards the 122.40/121.20 and 120.00 regions.

In the long term, watch for monthly closing above 125.85 or below 116.40 area, which will give a larger confirmation of direction in the long term.

Read more - https://gulfbrokers.com/en/usdjpy-hit-125-whats-next

 

[syamfx2020]

The online pet supplier Chewy (NYSE: CHWY) is set to report financial results for the fourth quarter today after the market close. The company is expected to post quarterly earnings of $-0.08 per share and revenues are expected to be $2.42 billion. On Monday, the Chewy shares closed by more than 6%. In the short term, if the bullish momentum continues then the next upside levels to watch $54.00 and $61.80.

EQUITIES

Global equities and US futures traded higher on Tuesday in hopes of peace talks between Russia and Ukraine. Ukrainian President Volodymyr Zelensky said he was prepared to discuss adopting a neutral status as part of a peace deal with Russia. A fresh round of peace talks between Russia and Ukraine brokered by Turkey kicked off in Istanbul on Tuesday.

OIL

Crude oil futures struggling to find the upside momentum, focus shifts to API inventory data which is set to be released later in the day. During the previous session, the oil prices ended lower after half of Shanghai went into lockdown following the latest Covid-19 outbreak. On the other hand, The United Arab Emirates energy minister doubled down Monday on an oil alliance with Russia, saying that nation, with its 10 million barrels of oil a day.

CURRENCIES

In the currency market, the British pound remains under pressure following the previous session's selling pressure. The currency pair fell after the comments by Bank of England Governor Andrew Bailey. He said that the rate hikes may not be as aggressive as previously anticipated.

GOLD

The safe-haven metal plunged to a fresh session low of $1910 on Tuesday amid hopes about a peace deal between Russia and Ukraine. Overall, the momentum remains bearish throughout the European session.

Economic Outlook

On the data front, Australian retail sales posted way above expectations for February. Australia's retail sales increased by 1.8% in February, exceeding market estimates of 1% and after a downwardly revised 1.6% gain a month earlier.

Moving ahead today, the important events to watch:

US – Consumer confidence: GMT – 14.00

US –JOLTS Job openings: GMT – 14.00

Coronavirus update:

Worldwide, more than 480 million people have been confirmed infected and more than 6.11 million have died. The United States has confirmed over 79.8 million cases and has had more than 975,000 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today the first support for the Euro appears to be around 1.0960, in the short-term any break below 1.0960 is the next downside level is to watch 1.0920 and 1.0890. On the flip side, the immediate resistance is around 1.1045 any break and close above this level will open to 1.1100 then 1.1120 minimum.

The important levels to watch for today: Support- 1.0960 and 1.0920 Resistance- 1.1045 and 1.1070.

GOLD: The precious metal trades below $1915. If the bearish momentum continues the next downside level is to watch $1900 and $1895. On the upper side, the immediate resistance is around $1920.

The important levels to watch for today: Support- 1908 and 1895 Resistance- 1920 and 1926.

Quote of the day - "In my book, trying to avoid losses is more important than striving for great investment success" - Howard Marks.

Read the original article here - https://gulfbrokers.com/en/daily-market-report-469