Tensions in Energy Markets

market news summary

European stock indices ended the trading session on June 5 with losses as energy and oil companies pared their gains. At the close of the session, the STOXX600 index declined by approximately 0.48% to 459 points.

The German DAX index also dropped by 0.54%, reaching 15,963 points, while the UK’s FTSE index decreased by 0.1% to 7,599 points. Similarly, the French CAC index finished the session down by around 0.96% at 7,200 points. According to Fedwatch data, the probability of a 25 basis point interest rate hike reached approximately 25%, compared to a 75% probability of rates remaining unchanged.

Dollar Index (USDX)

The dollar index declined immediately after the release of the ISM Services PMI data, which was contrary to expert expectations. The data indicates that the economy is contracting as the Federal Reserve desires. This led to a decline in the US dollar after it had been rising prior to the release.

The dollar index is recording a decrease of 0.05% to 103.910 points.

Pivot point: 104.00

Resistance level	Support level
104.20	103.70
104.50	103.55
104.70	103.25

Spot Gold (XAUUSD)

Gold prices stabilized in early Asian trading on Tuesday, June 6th, after US services sector data boosted hopes that the Federal Reserve would refrain from tightening its monetary policy this month.

Spot gold remained unchanged at $1,961.09 per ounce, while US gold futures rose 0.2% to $1,977.30.

Meanwhile, the yield on 10-year Treasury bonds declined to 3.683%.

Pivot point: 1954

Resistance level	Support level
1971	1945
1980	1928
1997	1919

Dow Jones Index (DJ30ft – US30)

US indices closed collectively lower in the first session of the week, pressured by a decline in Apple’s stock following the announcement of new products at the developers’ conference, in addition to anticipation of the Federal Reserve’s decision on interest rates later this month.

The Dow Jones index declined by approximately 0.63%, equivalent to 200 points, in Monday’s session, while the S&P 500 index dropped around 0.2% from its 9-month high.

Similarly, the Nasdaq index retreated from its 13-month high, decreasing by approximately 0.1% in Monday’s session.

Pivot point: 33,700

Resistance level	Support level
33805	33510
33995	33405
34095	33215

US Crude (USOUSD)

Oil prices declined on Tuesday, June 6, giving up most of the gains from the previous session following Saudi Arabia’s announcement, the world’s largest oil exporter, of its intention to increase production cuts.

Brent crude futures dropped by 23 cents or 0.3% to $76.48 per barrel, while West Texas Intermediate (WTI) crude lost 25 cents or 0.4% to reach $71.90 per barrel.

Pivot point: 72.85

Resistance level	Support level
74.05	70.70
76.20	69.55
77.35	67.40

Risk Warning

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