Daily Market Report by GulfBrokers 2020-2021

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As expected AUDUSD, GOLD, and EURUSD slipped to fresh weekly lows after the demand for the US dollar increased.
 
$DAL closed more than 2% lower on Tuesday after the company posted weaker-than-expected financial results.

EPS: -$3.30 vs -$3 expected
Revenue: $3.06B vs $3.11B expected

"We have been encouraged as more customers travel and we are seeing a path of progressive improvement in our revenues, financial results, and daily cash burn,” CEO Ed Bastian said.

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On Tuesday, the U.S. Labor Department announced its U.S. Consumer Price Index rose 0.2% last month, after a 0.4% rise in August. On a year-over-year basis, the CPI increased by 1.4% after rising 1.3% in August.

EQUITIES

Wall Street closed lower on Tuesday after U.S. health regulators have paused Eli Lilly's late-stage trial of its antibody treatment for COVID-19 due to potential safety concerns. On the earnings front, JPMorgan Chase & Co. reported that Q3 profit rose 4% from a year ago, beating expectations. On Wednesday, Bank of America, Wells Fargo, Goldman Sachs, and US Bancorp will report its third-quarter 2020 earnings results.

OIL

Crude oil prices ended higher on Tuesday supported by China Sept crude oil imports figures. China, the world's top crude oil importer, took in 48.48 million tonnes of oil last month, according to data from the General Administration of Customs on Tuesday, equivalent to 11.8 million barrels per day (BPD).

CURRENCIES


In the currency market, the EURO fell to a new weekly low on Wednesday, on worries about the rising coronavirus infections across Europe and weaker-than-expected economic data. Eurozone Industrial production dropped from 5% to 0.7% month-on-month in August.

GOLD

Gold price slipped to below $1900 after positive comments from IMF and the demand for the US dollar increased.

Economic Outlook

On the data front, ZEW survey data released on Tuesday reflected the fall in Economic Sentiment in Germany to its lowest level since May. The October index of Economic Sentiment fell from 77.4 to 56.1 points, which turned out to be significantly worse than market expectations at 73 points.

The IMF released its latest World Economic Outlook on Tuesday which sees the global economy contracting 4.4% this year and rebounding by 5.2% in 2021. IMF said that the governments must continue to provide support to workers and businesses, but cautioned that "the longer this crisis continues, it's going to be harder for governments to provide income support."

“The world is coming back from the depths of its collapse in the peak of this crisis, which was the first half of this year. Employment levels have partially rebounded after having plummeted to historic lows” Gita Gopinath, IMF chief economist said.

Coronavirus update:

The number of people infected with the coronavirus across the world crossed 38.1 million, of which at least 1.08 million people have died and 26.4 million have recovered, according to data released by the Johns Hopkins University.

Technical Outlook

Dollar Index:
US dollar index jumped by 0.5% on Tuesday. At the time of writing, the index trades above 93.50. On the upper side, the next levels to watch 93.90 and 94.20.

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The important levels to watch for today: Support- 93.30 and 93 Resistance- 93.90 and 94.20.



GOLD: The yellow metal slightly reversed from the previous session lows. At the time of writing, the gold price hovers near $1900 zones.

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The important levels to watch for today: Support- 1890 and 1880 Resistance- 1905 and 1910.

Quote of the day: Never stop investing, never stop improving, and never stop doing something new- Bob Parsons.

Read more- https://gulfbrokers.com/en/daily-market-report-186
 
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Johnson & Johnson (NYSE: JNJ) reported better-than-expected third-quarter financial results on Tuesday. The drugmaker raised its full-year guidance, saying it now expects per-share earnings of between $7.95 and $8.05, up from its previous forecast in July of between $7.75 and $7.95.

"Our third-quarter results reflect solid performance and positive trends across Johnson & Johnson, powered by better-than-expected procedure recovery in Medical Devices, growth in Consumer Health, and continued strength in Pharmaceuticals," J&J CEO Alex Gorsky said.

  • Earnings per share: $2.20 vs. $1.98 expected
  • Revenue: $21.08 billion vs. $20.2 billion expected

The stock fell more than 2% on Tuesday on concerns around the company pausing its covid-19 vaccine trials. Johnson & Johnson said on Monday it has temporarily paused its covid-19 vaccine candidate clinical trials due to an unexplained illness in a study participant. Johnson & Johnson's COVID-19 vaccine is being developed by its Janssen Pharmaceuticals unit, and its phase-three trial involves 60,000 participants.

“Our world-class R&D team is working tirelessly to advance the Phase 3 trials of our COVID-19 vaccine and to uphold the highest standards of transparency, safety, and efficacy,” Alex Gorsky said.

J&J said it completed its $6.5 billion purchase of Momenta Pharmaceuticals on Oct. 1. That deal is expected to help the company expand its position in creating drugs that treat autoimmune diseases in which the immune system attacks cells and body tissue, including common chronic disorders such as rheumatoid arthritis and colitis.
 
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The British pound trading volatile ahead of the European Union summit on Thursday as investors waiting for further updates about the future of negotiations between the European Union and Britain. While the UK government hinted at its willingness to extend the Brexit negotiations beyond the earlier October 15 deadline set by PM Boris Johnson.

EQUITIES
Wall Street ended lower on Wednesday for the second consecutive day after weaker-than-expected Q3 earnings results and US Treasury Secretary Steve Mnuchin cast doubt that additional fiscal stimulus would happen before the election. On the earnings front, Goldman Sachs (GS) Q3 financial results exceeded Wall Street estimates on Wednesday on strong bond trading and asset management, while fellow bank stocks Bank of America (BAC) and Wells Fargo (WFC) reported disappointing results.

OIL

Crude oil prices extend gains on Thursday after the API inventory report. The data showed crude stockpiles decreased by 5.42 million barrels in the week ended October 9th of 2020.

CURRENCIES

In the currency market, the Australian dollar slipped to a new weekly low on Thursday after mixed employment data and weaker-than-expected China inflation figures. On the other hand, US Dollar surged higher amid fading chances of a new U.S. fiscal stimulus package being finalized before the November elections.

GOLD

Gold price trading lower on Thursday, during the previous session the yellow climbed back to above $1910 but failed to close above $1900 on a daily basis.

Economic Outlook

On the data front, the Australian Bureau of Statistics data revealed that Australia’s unemployment rate inched higher to 6.9 percent in September from 6.8 percent in August. On the other hand, China's consumer price index, grew 1.7 percent and down from 2.4 percent in August, the National Bureau of Statistics said on Thursday. Meanwhile, the producer prices declined by 2.1 percent in September 2020, compared with market estimates of a 1.8 percent drop.

Moving ahead today, the important events to watch:

Eurozone - European council meeting: GMT - All-day

US – Initial jobless claims: GMT – 12.30

US – Crude oil Inventories: GMT – 14.30


Coronavirus update:

Worldwide, the number of people infected with the coronavirus surpassed 38.5M. The Czech Republic reported 9,544 new Covid-19 cases on Wednesday, it's highest one-day tally since the pandemic started. Germany posts a record daily increase in coronavirus infections, adding 6,638 cases and bringing the total to 341,223.

Technical Outlook



EUR/USD:
The currency pair trading lower as investors remained concerned about the negative impact of the continued surge in coronavirus cases and fresh lockdown restrictions in parts of Europe.

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The important levels to watch for today: Support- 1.1700 and 1.1670 Resistance- 1.1730 and 1.1770.



GOLD: The yellow metal trades below $1900, any break below $1890 the next downside levels to watch $1880 and 1860. On the upper side, the immediate resistance around $1906.

audusd


The important levels to watch for today: Support- 1890 and 1880 Resistance- 1906 and 1918.

Quote of the day: Cut your losses quickly, without hesitation – Jesse Livermore.

Read more- https://gulfbrokers.com/en/daily-market-report-187
 
AUDUSD nice drop so far and trades below my second downside support level. The next support to watch $0.7060 then 0.7000(psychological level). On the upper side, the immediate resistance around 0.71 then 0.7130.
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