Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

This week huge volatility is expected to be back as the tensions heat up on the Russia-Ukraine border. The conflict will continue to deal a heavy blow to the global markets especially It is more clear after the Friday late-night market movement. On the other hand, the investors also waiting for the last FOMC meeting minutes, which is set to be released on Wednesday.

On the earnings front, the companies due to release their results will be Walmart, Shopify, Nvidia, Palantir and Airbnb will be among those reporting earnings this week.

GOLD

The precious metal ended last week sharply higher as investors turned to safe assets on growing tensions between Russia and Ukraine. The main drivers for the precious metal remain the geopolitical tensions, inflation risks and the movement of the US dollar.

This week, the first resistance is located around $1865, a break above this level will confirm a possible move to $1872/76. On the downside, any meaningful pullback now seems to find some support near the $1840 zones, below which the slide could further get extended towards the $1832 and $1826 region.

DOLLAR INDEX

The US Dollar Index, which measures the greenback’s value against the basket of six major currencies almost flat on Monday but the Index remained in favour as a safe haven currency as investors believe the Federal Reserve will step in to hike interest rates if prices keep running higher. Recently, St. Louis Federal Reserve Bank President James Bullard, told Bloomberg that he supports the Fed hike rates by 100 basis points by July 1, including one hike being 50 basis points.

This week, if the index stays above 95.00, then the next short-term resistance is located in the area of 96.45, a break above 96.45 will confirm a possible move to 96.90. On the downside, a breakdown through 95.00 would negate that bias and suggest a test of the 94.60 and 94.30 support regions.

EURUSD

The currency pair remains undecided as to which way its next directional break will be. During the last week, the currency pair retreat back to below 1.1380 after the buyers failed to break above the key resistance level of 1.1500.

For Euro this week, the first nearest support level is located at 1.1300. In case it breaks below this level, it will head towards the next support level which is located at near 1.1270 then 1.1220. On the upside, 1.1380 will act as an immediate and strong hurdle while 1.1420 will be a critical resistance zone because above this, bulls are likely to dominate.

DOW JONES

Dow Jones started the new on a bearish note after the Index finished in negative territory on Friday. The overall momentum remains bearish after the US warned of an imminent Russian invasion of Ukraine. This week, dow traders should also monitor the release of January US retail sales numbers and Q4 results from the world’s largest retailer, Walmart.

For Dow, this week the immediate support is near 34,500. Any break and close below 35,500, the next support levels to watch 34,200 and 33,950. On the upper side, the first resistance at 34,950 any break above this level will open 35,400/700 minimum.

Read more- https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-17

 

[syamfx2020]

The e-commerce giant Shopify (NYSE: SHOP) earnings release for the fourth quarter is slated for February 16, before markets open. The company is expected to post quarterly earnings of $1.27 per share and revenues are expected to be $1.34 billion.

Shopify stock witnessed a big correction recently; the stock reached a fresh all-time high of $1762 on November 19th, 2021, since then the stock fell almost 50%. In the previous quarter, the company reported adjusted earnings of $0.81, down from $1.13 a share a year earlier. At the same time, revenue soared 46% to $1.12 billion from $767 million last year.

$SHOP technical outlook

Shopify shares have lost 36% year-to-date and the stock currently trading at roughly $835, down by 2% in pre-market trading. Technically the overall momentum remains bearish after the stock witnessed sustained downside pressure over the past few weeks. $SHOP has a 52-week low of $780.00 and a 52-week high of $1,762.92.

The $SHOP stock is currently supported at $780, and the resistance is around $940. However, there is a possibility that Shopify’s stock may regain upside momentum if the company exceeds expectations.

Read more here- https://gulfbrokers.com/en/stock-to-watch-this-week-shopify

 

[syamfx2020]

“Bitcoin, in the short or even long term, may turn out be a good investment in the same way that anything that is rare can be considered valuable. Like baseball cards. Or a Picasso.” Andrew Ross Sorkin.

The world's biggest cryptocurrency Bitcoin (BTC) is now trading above $43,500, up for the second consecutive day. Meanwhile, the overall, momentum remains mixed as the investors remain concerned about the Fed tightening monetary policy. The market participants now expect the Fed to raise interest rates as many as four times in 2022.

One of the main reasons why the Bitcoin price has struggled in the past few months on prospects for higher interest rates and tighter financial conditions. Bitcoin dropped below $34,000 on Jan. 24, 2022, marking the lowest Bitcoin’s price has been since July 2021. It has fallen 50%, from a high of almost $70,000 in November 2021. However, the BTC eventually started reversing up after sticking above the support for two weeks.

During the last week, the Bitcoin price ended lower after the US Consumer Price Index (CPI) showed that inflation in the world’s largest economy has reached 7.5% year-over-year, the rise in inflation was the largest since February 1982. For this week, the main drivers for Bitcoin remain the comments from the US Federal Reserve policymakers, geopolitical tensions, and the movement of the US dollar. On the other hand, the investors should also monitor the correlation between bitcoin and technology stock prices.

BTCUSD short-term and long-term technical review

Looking at Bitcoin from a very short-term perspective, it is evident that the pair held steady above the previous week low. In the short term, if the bullish momentum continues the next upside levels to watch $44,500 and $45,000/500. On the flip side, the first immediate support can be found at $42,500 and then $41,700.

The below chart plots the long-term view of Bitcoin. On the upper side, a move past last week resistance level of the $45,800 mark is likely to spark a fresh wave of rallies for the crypto pair, which can push its price beyond the $50,000 mark. On the flip side, If the price breaks below the $41,500 support level, it could fall back to the $39,300 and $36,000 levels.

Read more- https://gulfbrokers.com/en/whats-the-next-direction-for-bitcoin

 

[syamfx2020]

The gold price has been benefitting from a safe haven play as uncertainty around global markets continues. The metal reached a fresh 8-month high of $1879 on Tuesday early morning while the gold price retreated back to below $1860 during the European session.

EQUITIES

US futures and European shares recovered from the early losses following the comments from the Russian defence ministry spokesman. "Units of the Southern and Western military districts, having completed their tasks, have already begun loading onto rail and road transport and today they will begin moving to their military garrisons,"

OIL

Crude oil futures slightly retreat from the highs after the latest news reports suggest some Russian forces returning to their bases. While the overall momentum remains bullish due to escalating geopolitical tensions between Russia.

CURRENCIES

In the currency market, the Euro regains some upside momentum against the US dollar. The British pound remains one of the strongest currencies this week. The New Zealand dollar struggling to find the upside momentum, focus shifts to next week RBNZ meeting.

GOLD

The Safe-haven metal reversed from the early gains amid signs of easing geopolitical tensions after reports that some Russian troops in areas near Ukraine have started returning to their bases.

Economic Outlook

On the data front, the UK reported upbeat employment data. The job data showed the number of people claiming unemployment-related benefits fell 31.9K in January and the Unemployment Rate held steady at 4.1%

Moving ahead today, the important events to watch:

US: PPI – 13.30 GMT

US: Empire State Manufacturing Index – 13.30 GMT

Coronavirus update:

Worldwide, more than 410 million people have been confirmed infected and more than 5.8 million have died. The United States has confirmed over 77 million cases and has had more than 910,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: For today, If the bullish momentum continues then the next upside level is to watch 1.1350 and 1.1385. On the other hand, the next immediate support prevails at 1.1300, further breakout of 1.1300 can lead the pair towards 1.1270/50 levels.

The important levels to watch for today: Support- 1.1300 and 1.1270 Resistance- 1.1350 and 1.1385.

GOLD: The precious metal fell to the fresh session low of $1853 after the metal failed to break above the key resistance area of $1880.

The important levels to watch for today: Support- 1850 and 1842 Resistance- 1864 and 1875.

Quote of the day - “Bull markets are born on pessimism, grow on scepticism, mature on optimism and die of euphoria.” – John Templeton.

Read more- https://gulfbrokers.com/en/daily-market-report-449

 

[syamfx2020]

The maker of semiconductors for video games Nvidia (NASDAQ: NVDA) stock popped 9% on Tuesday ahead of the earnings report. The company is scheduled to report fourth-quarter 2021 earnings results today after market close. Nvidia is expected to post quarterly earnings of $1.22 per share and revenues are expected to be $7.4 billion.

$NVDA key technical levels to watch for today:

Support: $249 and $230

Resistance: $271 and $288

EQUITIES

US futures trades near the session high, focus shifts to January US retail sales data. Retail sales in the US is expected to rise 2% in January after their higher-than-expected fall of 1.9% in December.

On the earning front, Hotel giant Marriott International (NASDAQ: MAR) hit a new 52-week high on Tuesday after the company's Q4 earnings beat Wall Street expectations and earnings guidance.

OIL

US oil futures recovered from the early losses. While the upside movement may be very limited before a substantial correction after Russia withdrew some of its troops near the Ukrainian border. On the other hand, the API inventory data showed that US crude stockpiles fell by 1.1 million barrels last week.

CURRENCIES

In the currency market, the EURUSD surged to a fresh weekly high of 1.1394 on Wednesday. Risk-sensitive currencies such as the Australian dollar and the New Zealand dollar holding the gains against the greenback following an easing of geopolitical tensions.

GOLD

The Safe-haven metal slightly recovered from the early session losses, but the upside movement is limited as the Federal Reserve will reveal the minutes from its last meeting. At the time of writing, the metal trades were above $1856.

Economic Outlook

On the data front, the UK annual inflation has hit the highest level since 1992. The Consumer Prices Index (CPI) increased by 5.5 percent in January from 5.4 percent in December.

Moving ahead today, the important events to watch:

US: Retail sales – 13.30 GMT

US: FOMC meeting minutes – 19.00 GMT

Coronavirus update:

Worldwide, more than 410 million people have been confirmed infected and more than 5.8 million have died. The United States has confirmed over 77 million cases and has had more than 910,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: Technically the overall momentum remains bullish, the immediate support for the Euro stands near the level of 1.1340 then 1.1300. On the flip side, the first resistance at 1.1400 any break above this level will open 1.1420/40 minimum.

The important levels to watch for today: Support- 1.1340 and 1.1300 Resistance- 1.1400 and 1.1440.

GOLD: For today, the resistance for Gold is around 1865, any break over targets 1872/80. On the other side, the immediate support near 1844 and any break will drag the metal to 1836/30 levels.

The important levels to watch for today: Support- 1844 and 1832 Resistance- 1865 and 1880.

Quote of the day - “It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” – Charlie Munger.

Read more- https://gulfbrokers.com/en/daily-market-report-450

 

[syamfx2020]

Global markets have calmed down slightly on Monday morning from the early sell-off after the French President Emmanuel Macron’s office announced that US President Joe Biden and Russian President Vladimir Putin have agreed in principle to a summit. Macron spoke with Putin twice Sunday, both before and after he called Biden for a brief 15-minute phone call. On the other hand, Ukrainian President Volodymyr Zelensky called for Putin to meet him and seek a resolution to the crisis. However, the investors should continue to monitor the tensions at the Ukraine–Russia border.

On the earnings front, the companies due to release their results will be Teladoc, Home Depot, Alibaba, Moderna and Coinbase will be among those reporting earnings this week.

GOLD

The precious metal climbed to the highest level in nearly 36 weeks in early Asian trading on Monday driven by escalating tensions between Russia and Ukraine. The metal traded above $1900 on Monday morning following the latest reports over an explosion in Donetsk and the evacuation of residents from East Ukraine to Russia. While later the metal retreats back to below the psychological level of $1900.

This week, the key resistance is located around $1915/20, a break above this level will confirm a possible move to $1935/50. On the downside, any meaningful pullback now seems to find some support near the $1878 zones, below which the slide could further get extended towards the $1864 and $1845 region.

DOLLAR INDEX

The safe-haven US dollar started the new week on a bearish note. For the US dollar, the main attraction for this week is Investors waiting for the US GDP and durable goods orders data, which could trigger volatility in the market.

Technically the overall trend looks bearish after the index failed buyers failed to hold the upside momentum and the short-term support is still around 95.60. If the Index breaks and closes below this level the next important support is at 95.10. On the upper side, if the price break and close above 96.20, the next upside levels are to watch 96.45 and then 96.90.

EURUSD

The currency pair rebounded after the pair found once again strong buyers above the psychological support of 1.1300. Moving ahead, the main attraction for EURO this week is the Eurozone inflation figures on Wednesday. In today’s session, the currency pair will be reacting to the scheduled release of the Eurozone and Germany manufacturing PMI data.

This week, the key resistance is located above the last week high around 1.1400, a break above this level will confirm a possible move to 1.1440 and 1.1485. On the downside, if the pair loses the 1.1300 handles, then we expect a move toward 1.1270 then 1.1220.

DOW JONES

Dow Jones futures slightly recovered from the early losses as traders remain hopeful ahead of the proposed Biden-Putin Summit. Meanwhile, the trading activity is expected to be low on Monday as US stock markets closed for President’s Day.

Technically the overall sentiment remains bearish. However, a fresh demand for Dow can be anticipated once the index rises above the 34,600 resistance. On the other hand, the next immediate support prevails at 33,900, further breakout of 33,650 can lead the pair towards 33,400 levels.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-18

 

[syamfx2020]

Oil and gas company Halliburton (NYSE: HAL) stock has risen almost 40% this year and the stock created a new 52-week high of $34.32 on Feb 16, 2022. The recent strong upside momentum is supported by the release of upbeat fourth-quarter financial results and oil prices rally. During the last week, the stock closed slightly lower after the crude oil prices ended for their first weekly decline since early December.

Halliburton posted revenue of US $4.28 billion for the last quarter – exceeding Wall Street forecasts of US $4.08 billion. The company reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.34.

“I am excited about the accelerating multi-year upcycle. I expect the macro industry environment to remain supportive and the international and North American markets to continue their simultaneous growth,” - $HALL CEO, Jeff Miller said during its Q4 earnings call.

Technically the overall momentum remains bullish for the last 2 months. At the time of writing, the $HAL stock trading was almost 1% higher in the pre-market trading on Monday. In the short term, if the bullish momentum continues the next upside level to watch $38 and a clear break above $38 will open the doors to $46 and $50. On the flip side, the immediate support at $30.30 followed by $26.00.

In the long term, watch for the crude oil price movement. If the oil prices started to go lower, then the demand for Halliburton’s services will reduce automatically which will negatively impact the company stock price.

Read more- https://gulfbrokers.com/en/is-halliburton-stock-still-a-buy

 

[syamfx2020]

The Russian rouble has dropped to a fresh 15-month low against the US dollar on Tuesday after Russian President Vladimir Putin signed a decree to recognize two breakaway regions of eastern Ukraine as independent entities.

"I deem it necessary to make a decision that should have been made a long time ago - to immediately recognize the independence and sovereignty of the Donetsk People's Republic and the Lugansk People's Republic", Putin said.

EQUITIES

Asian shares extend lower and US futures near the session low as investors fear a Russian invasion of Ukraine might lead to a large-scale conflict.

On the earnings front, Home Depot, Teladoc and Macy’s, are amongst those reporting the last quarter financial results today.

OIL

Crude oil futures returned back to the highs supported by the continued uncertainty around the Ukraine crisis. Overall the momentum remains bullish throughout the Asian session.

CURRENCIES

In the currency market, the New Zealand dollar is trading steady against the US dollar and Euro ahead of the RBNZ meeting, the central bank is widely expected to hike rates at the Wednesday meeting. While the Euro struggling to find the upside momentum against the greenback and British pound.

GOLD

The Safe-haven metal hits a new session high on Tuesday morning as geopolitical friction keeps tensions high, which increases the demand for safe-havens. At the time of writing, the metal trades above $1900.

Economic Outlook

On the data front, the UK, Eurozone, and Germany reported the latest PMI data on Monday. UK Manufacturing PMI remained steady at 57.3, while the Services PMI impressed with a reading of 60.8, up from 54.1. Eurozone Manufacturing PMI went down to 58.4 in February of 2022 from 58.7 in January, and below market forecasts of 58.7.

Moving ahead today, the important events to watch:

US: Manufacturing PMI – 14.45 GMT

US: CB consumer confidence – 15.00 GMT

Coronavirus update:

Worldwide, more than 420 million people have been confirmed infected and more than 5.9 million have died. The United States has confirmed over 77 million cases and has had more than 910,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: For today, the first nearest support level is located at 1.1290. If it breaks below this level, it will head towards the next support level which is located at near 1.1270 then 1.1250. On the flip side, the immediate resistance is near 1.1350.

The important levels to watch for today: Support- 1.1290 and 1.1260 Resistance- 1.1350 and 1.1390.

GOLD: in the short-term perceptive, the immediate bias will remain bullish as long as prices are held above $1900. On the flip side, any break below $1895 then the next support near the $1888 followed by $1880 level.

The important levels to watch for today: Support- 1895 and 1880 Resistance- 1913 and 1920.

Quote of the day - "To win in the markets, we need to master three essential components of trading: Sound psychology, a logical trading system, and an effective risk management plan.”

Read more- https://gulfbrokers.com/en/daily-market-report-451

 

[syamfx2020]

The Reserve Bank of New Zealand raised interest rates by 25 basis points to 1% today. The path for interest rates is clearly higher as the bank faces rising inflation. The central bank has signalled that it will continue to take a more aggressive approach to tighten monetary policy.

“A further reduction in monetary policy stimulus is appropriate to maintain price stability. It also supports sustainable employment at full potential.” – RBNZ said.

EQUITIES

US futures slightly rebounded while the overall momentum remains mixed after the United States announced its first set of sanctions against Russia. Meanwhile, as per the latest reports says the meeting between the US Secretary of State Blinken, and the Russian Minister of Foreign Affairs has been cancelled.

On the earnings front, Fubo TV, Lowe’s and eBay are amongst those reporting the last quarter's financial results today.

OIL

Crude oil futures ended lower on Tuesday while seems the downside is limited due to the potential disruption of energy supplies from Russia. On the other hand, the oil investors also waiting for fresh updates on nuclear talks. Yesterday, Iran Foreign Ministry spokesman Khatibzadeh noted that significant progress has been made in reviving the 2015 nuclear deal.

CURRENCIES

In the currency market, the US dollar remains steady as Investors have been buying into the safe-haven currency as global market sentiment remains cautious. While the EURUSD rebounded back to above 1.1340 following the comments from the ECB policymaker, Robert Holzmann, the focus now shifted to Eurozone inflation data.

GOLD

The Safe-haven metal struggling to find the upside momentum above $1900. However, the fundamental picture is generally quite optimistic, and the geopolitical tensions provide additional support to quotes.

Economic Outlook

On the data front, U.S. consumer confidence declined modestly this month but remains high, the consumer confidence index dipped to a reading of 110.5 this month, the lowest since last September, from 111.1 in January. US Manufacturing PMI increased to 57.5 in February of 2022 from 55.5 in January, beating forecasts of 56.

Coronavirus update:

Worldwide, more than 420 million people have been confirmed infected and more than 5.9 million have died. The United States has confirmed over 77 million cases and has had more than 910,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: For today, the resistance for the pair is above 1.1350, any break over targets 1.1380 minimum. On the other side, the immediate support is near 1.1300 and any break will drag the pair to 1.1270 and 1.1250 levels.

The important levels to watch for today: Support- 1.1300 and 1.1250 Resistance- 1.1350 and 1.1390.

GOLD: The precious metal remains under pressure a clear breakdown of the support at $1,890 could open space for further declines while only recovery to $1,905 would reverse the short-term negative trend.

The important levels to watch for today: Support- 1890 and 1884 Resistance- 1905 and 1915.

Quote of the day - “If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in. There is nothing better than a fresh start.” Paul Tudor Jones.

Read more- https://gulfbrokers.com/en/daily-market-report-452

 

[syamfx2020]

The world-famous aeronautics engineering company Rolls-Royce (LSE: RR) share price rebound for the second consecutive day. The share price was up by more than 2% on Wednesday, the upside momentum supported after the company said that its electric planes and air taxis will be ready by 2025. While considering the recent rebound the share price is down more than 20% in the past 3 months.

Rolls-Royce reports its full-year results for 2021 on Thursday, February 24. Rolls-Royce Holdings is the second-largest airplane engine manufacturer globally, right behind GM. The company makes power systems that power ships and other marine products in its power business. The firm has a market capitalization of £10.19 billion and a price-to-earnings ratio of 4.30.

Rolls-Royce recently announced that its power systems unit is developing low-emission yacht engines powered by methanol amid a drive to diversify away from its core business of civil aviation. The company also expects to produce the first electric aircraft within 3-5 years. The small aircraft powered by P-Volt will have about 600-kilowatt hours of power and it will enable flying six to eight people as far as 80 nautical miles and the battery-electric system.

“We are confident in the technology. Now we need to scale it so it can have a meaningful economic influence, I think that’s where you see urban air mobility and regional air mobility, aircraft with 8-18 seats, becoming a real possibility in the next three to five years” - Rolls-Royce Electrical President Rob Watson said.

ROLLS-ROYCE (LSE: RR) TECHNICAL OUTLOOK

Technically the overall momentum remains mixed after last week's downside move. However, the stock attempting to regain ground once again pushing back above 120p with the next resistance level in sight at 124p. Therefore, there are chances the stock will likely keep rising in the short term if the company report strong results on Thursday.

On the upside, if the RR sustains above 124p and the momentum picks up there are chances the stock may eventually rise to near the 135p area and a clear break above 135p will open the doors to 150p. On the flip side, a break back below 106p might indicate a resumption of the long-term downtrend.

Read more - https://gulfbrokers.com/en/rolls-royce-regains-the-momentum-ahead-of-its-earnings