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Market Analytics
27th | January | 2021
Profiting is Managing your Risk
www.enrichers.com.pk
Market Overview
Asian equities poised to eke higher on Wednesday, bouncing back from a sharp sell-off on Tuesday,
while Australian stocks showed dismal and inched lower to narrow the gap after a Tuesday holiday.
Investors are keeping a close watch on Australian inflation figures due out later Wednesday, both
equities and the Aussie dollar have been on a string and out-of-hand. Aussie shares hit an 11-month
high on Monday, lock to pre-COVID levels.
The U.S. Federal Reserve is due to broadcast results its two-day policy meeting on Wednesday. Analysts
expect the Fed to keep glued to its dovish tone to help stave off the worst effect of virus from the
economy.
U.S. stimulus talks are snatching all the limelight as Democrats likely to move forward on relief plan
without Republican support.
U.S. Treasury yields were mostly down in jerky trading overnight. Benchmark 10-year notes were
yielding 1.033%, nudged with 1.04% late on Tuesday.
Australian S&P/ASX 200 futures lost 0.25% in early trading. Japan's Nikkei 225 futures gained 0.07%.
Hong Kong's Hang Seng index futures inched higher 0.68%.The Australian dollar boosted 0.05% versus
the greenback at $0.775.
The U.S. dollar nosed out across the board as traders displayed a taste for riskier currencies. The dollar
index inched lower 0.194%, with the euro up 0.02% to $1.2162. The Japanese yen thinned down 0.01%
versus the greenback at 103.61 per dollar, while Sterling was last trading at $1.3735, up 0.01% on the
day.
The Dow Jones Industrial Average fell 22.96 points, or 0.07%, to 30,937.04, the S&P 500 lost 5.74
points, or 0.15%, to 3,849.62 and the Nasdaq Composite dropped 9.93 points, or 0.07%, to 13,626.07.
Gold prices had a choppy trading and continue to experience lackluster activity. Oil prices were
supported by economic confidence, with U.S. crude futures trading up 0.3% at $52.79 per barrel.
26th January 2021 Price Range
Instruments Open High Low Close Range Change %Change
Crude Oil 52.91 53.25 52.29 52.61 0.96 -0.3 -0.56%
Gold Futures 1854.9 1860.8 1847.2 1850.9 13.6 -4 -0.21%
Silver Futures 25.395 25.72 25.23 25.54 0.49 0.145 0.57%
EUR/USD 1.2138 1.2177 1.2107 1.216 0.007 0.0022 0.18%
GBP/USD 1.3674 1.3745 1.3609 1.3733 0.0136 0.0059 0.43%
USD/JPY 103.74 103.83 103.55 103.6 0.28 -0.14 -0.13%
NSDQ100 13463.12 13599 13380.25 13561.25 218.75 98.13 0.72%
Dow 30 30833 31015 30669 30850 346 17 0.05%
S&P 500 3845.12 3862.12 3821.88 3847.38 40.24 2.26 0.05%
KSE 100 46087.64 46398.01 46087.64 46287.38 310.37 199.74 0.43%
DXY 90.39 90.61 90.12 90.17 0.49 -0.22 -0.24%
Table 1: Price Ranges in Market 26th January, 2021 - Tuesday
Commodities
Crude Oil
U.S. crude inventories fell by 5.27 million barrels last week,
as roughly approximation released Tuesday by the API, after
a build of 2.56 million barrels the previous week. Cushing
inventory slipped by 3.48 million barrels rose Gasoline
inventories climbed by 3.06 million barrels and distillate
stocks increased by 1.4 million barrels. The official
government report due Wednesday is anticipated to
demonstrate weekly U.S. crude supplies improved by about
430,000 barrels last week.
Today's Technical Level
Instrument S3 S2 S1 Pivots R1 R2 R3
Crude Oil 50.80 51.76 52.18 52.72 53.14 53.68 54.64
GOLD
Gold traders are in wait-and-see situation until the Fed can
gesture that they are nowhere in close proximity to slow asset
purchases. The next 24-hours could project dull trading activity
for gold traders. However, the yellow metal softened slightly in
early trade after positive news from Regeneron’s antibody
cocktail that could be used as a passive COVID vaccine. The
dollar fell and yields moved higher but this failed to buoy gold
or drive volatility. According to the latest Case Shiller Home
price report, US home prices continued to climb at a steady
pace in November.
Today's Technical Level
Instrument S3 S2 S1 Pivots R1 R2 R3
Gold 1825.77 1839.37 1845.13 1852.97 1858.73 1866.57 1880.17
SILVER
Silver markets rallied a bit on Tuesday. The market continue to
jitter seems as if it is simply waiting on the FOMC. The catalyst
to the white metal market is going to be whether or not to
stay above the $26 level. Silver, on Tuesday traded in the zone
between the 50 EMA and 20 EMA at the same time as the U.S.
dollar lost firm footing. The fate of stimulus largely affects the
investors mood as to preserve wealth via hard assets such as
silver. Also, there is a dispute to be made for the reflation trade
to increase the demand for silver as far as industrial use is
consider.
Today's Technical Level
Instrument S3 S2 S1 Pivots R1 R2 R3
Silver 24.52 25.01 25.27 25.50 25.76 25.99 26.48
Currencies
EUR/USD
An improved market sent EUR/USD to a daily high of 1.2175.
However, investors hang about the first-tier events in the US
to be released later in the week. The market mood suffered a
setback mid-US afternoon, after the ECB articulated concerns
about the exchange rate, and would schoolwork the impact of
ECB vs Fed policy. On Wednesday, Germany will publish the
February GFK Consumer Confidence Survey, foreseen at -7.9
from -7.3 in the previous month. The US will release
December Durable Goods Orders, seen advancing a modest
0.9%.
Today's Technical Level
Instrument S3 S2 S1 Pivots R1 R2 R3
EUR/USD 1.2008 1.2078 1.2119 1.2148 1.2189 1.2218 1.2288
GBP/USD
The GBP/USD pair pointed at 1.3744, kicking around the yearly
high and holding close by as the day end. The pound advanced
by better than expected UK employment data, during which
time the ILO unemployment rate came in at 5% for the three
months to November. The highlight shall remain on US Durable
Goods Orders, and the Federal Reserve monetary policy
announcement, although the Fed is not likely to surprise. The
number of new coronavirus cases in the UK continues reducing
as the country reported 20,089 cases this Tuesday.
Today's Technical Level
Instrument S3 S2 S1 Pivots R1 R2 R3
GBP/USD 1.3424 1.3560 1.3646 1.3696 1.3782 1.3832 1.3968
USD/JPY
The USD/JPY pair hung loose on healthier market mood,
which weighed on the greenback. The pair trades in the
103.60 price region, not far from a daily low of 103.55. The
BOJ published the minutes of its latest monetary policy
meeting showing that policymakers remain open to increase
facilities. The country published the December Corporate
Service Price Index, -0.4%, better than anticipated. Japan will
circulate December Retail Trade figures this Wednesday, and
Large Retailer Sales for the same month.
Today's Technical Level
Instrument S3 S2 S1 Pivots R1 R2 R3
USD/JPY 103.10 103.38 103.49 103.66 103.77 103.94 104.22
US Stock Market
NASDAQ 100
The Nasdaq Composite dropped 9.93 points, or 0.07%, to
13,626.07. For the Nasdaq, the decline broke a five-session
streak of gains, its longest run of daily growth since early
November. After the closing bell, Microsoft (NASDAQ:MSFT)
shares added 5.20% as the tech giant beat Wall Street
estimates for revenue growth. Beyond Meat (NASDAQ:BYND)
rose nearly 18% as the teamed up with PepsiCo (NASDA:PEP)
to jointly build up plant-based snacks and drinks.
Today's Technical Level
Instrument S3 S2 S1 Pivots R1 R2 R3
NASDAQ 100 13076.00 13294.75 13428.00 13513.50 13646.75 13732.25 13951.00
DOW JONES 30
The DJIA fell 22.96 points, or 0.07%, to 30,937.04. Johnson
& Johnson (NYSE:JNJ) also flaunt a hefty lift, up 2.71%. 3M
Co climbed 3.26% as one of the chief boosts after it
benefited from lower costs and demand for disposable
respirator masks, hand sanitizers and safety glasses.
American Express Co (NYSE:AXP) loss 4.13% after it posted
a 15% drop in quarterly profit as lockdowns and business
restrictions reserved the credit card issuer's members from
traveling and dining out.
Today's Technical Level
Instrument S3 S2 S1 Pivots R1 R2 R3
DOWJONES 30 30152.67 30498.67 30674.33 30844.67 31020.33 31190.67 31536.67
S&P 500
The S&P 500 lost 5.74 points. Of the 84 companies in the
S&P 500 that posted earnings through Tuesday morning,
86.9% have crowned analyst expectations. The focus on
earnings is likely to strengthen in the coming days as Apple
(NASDAQ:AAPL), Tesla (NASDAQ:TSLA), Boeing
(NYSE:BA), Facebook Inc (NASDAQ:FB), AT&T (NYSE:T) are all
set to issue quarterly reports. Microsoft (NASDAQ:MSFT) will
report fourth-quarter results.
Today's Technical Level
Instrument S3 S2 S1 Pivots R1 R2 R3
S&P 500 3763.31 3803.55 3825.47 3843.79 3865.71 3884.03 3924.27
Financial Glossary Eke higher – Move higher Dismal – Depressing Lackluster – Dull Catalyst – Medium/Means Jitter – Shake Reflation Trade - Reflation trades tend to involve assets exposed to faster economic growth, price pressures and higher yields Hefty - Strong
DISCLAIMER
Information and opinions contained herein is compiled by sources Enrichers
Research Team believes to be reliable, but we do not accept any responsibility of
its accuracy or completeness. In particular, the report takes no account of the
investment objectives. Any opinions, research, news, analysis, prices or other
information contained do not constitute an offer or solicitation to make any
investment which carries risk.
For moreinformation
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