market news summary

European stocks recorded their lowest level in two months on Wednesday, as concerns over global slowdown outweighed optimism about easing inflation in some major eurozone economies amidst weak economic data from China and uncertainty surrounding the US debt ceiling agreement. The European Stoxx 600 index closed down 1.1%, reaching its lowest level since March 30th.

The House of Representatives is set to vote on the bill to raise the debt ceiling, which stands at $31.4 trillion. This is a crucial step to avoid defaulting on payments, which could occur next week if Congress does not approve the measure.

The Ministry of Labor reported that job vacancies in the United States unexpectedly increased in April, indicating ongoing strength in the labor market and putting pressure on wages and inflation.

Dollar Index (USDX)

The US dollar index regained its upward momentum today, rising by 0.36% to reach 104.450 dollars, hitting its highest level in two months.  Meanwhile, unexpectedly strong labor market data emerged, unsettling investors who fear that the Federal Reserve may raise interest rates again in June.

Pivot Point: 104.20

Resistance level	Support level
104.50	103.85
104.85	103.55
105.15	103.15

Spot Gold (XAUUSD)

Gold rose yesterday, Wednesday, supported by a decline in Treasury bond yields. However, the dollar’s strength, expectations of interest rate hikes, and optimism regarding the US debt ceiling agreement are causing gold to head for its first monthly decline in three months.

Spot gold prices rose by 0.4% to $1,966.89, but gold has declined by 1.1% this month. US gold futures recorded a 0.3% increase to $1,982.10 upon settlement.

Pivot Point: 1963

Resistance level	Support level
1973	1952
1984	1942
1994	1931

Dow Jones Index (DJ30ft – US30)

In yesterday’s Wednesday session, the Dow Jones Industrial Average fell by approximately 0.4%, or 134 points, closing near its lowest levels in two months. Throughout the month, the Dow Jones has declined by about 3.5%, marking its second monthly decline in 2023.

The S&P 500 index also declined by about 0.6% in yesterday’s Wednesday session, but it maintained monthly gains of approximately 0.25%, achieving an increase for the third consecutive month.

Similarly, the Nasdaq Composite index dropped by about 0.6%. Still, it held onto monthly gains of around 5.8%, achieving an increase for the third consecutive month and the highest monthly closing since March 2022.

Pivot Point: 32930

Resistance level	Support level
33067	32790
33210	32650
33345	32510

US Crude (USOUSD)

Oil prices declined yesterday, Wednesday, at the close, influenced by the strength of the dollar and weak data from China, the world’s largest crude oil importer, which raised concerns about demand.

Brent crude futures for July delivery dropped by 1.2%, or 88 cents, to close at $72.66 per barrel. Meanwhile, West Texas Intermediate (WTI) crude oil declined by $1.37, or 1.97%, to $68.09 per barrel.

Pivot Point: 68.10

Resistance level	Support level
69.15	66.45
70.70	65.40
71.75	63.85

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