Market News Summary
Bank of America believes that the Federal Reserve and Saudi Arabia are engaged in a “battle of ownership” over oil, and that crude prices are likely to remain under pressure until the Federal Reserve withdraws from its tightening monetary policy.
According to Bank of America, oil prices are expected to rise to $80 per barrel by the end of this year as the Federal Reserve is likely to approach the end of its interest rate hike policy.
European stocks ended Tuesday’s session on a high note amid anticipation of the Federal Reserve’s two-day meeting and the release of economic data.
At the end of the session, the STOXX600 index rose by about 0.55% to 463 points. The German DAX also climbed by 0.83% to 16,230 points, the British FTSE increased by 0.32% to 7,594 points, and the French CAC gained about 0.56% to reach 7,290 points.
Dollar Index (USDX)
The dollar index deepened its losses after the release of US inflation data, which showed lower-than-expected figures, encouraging the Federal Reserve to maintain a more accommodative monetary policy.
The index recorded 102.685 points, down by approximately 0.52%, and is currently trading around the 103.20-dollar level.
Pivot point: 103.30
| Resistance level | Support level |
| 103.55 | 102.95 |
| 103.85 | 102.70 |
| 104.15 | 102.40 |
Spot Gold (XAUUSD)
Gold prices declined for the third consecutive session at the close of trading on Tuesday, June 13, amid anticipation of the Federal Reserve’s decision and expectations of interest rates remaining unchanged, following the release of inflation data in the United States.
At the close, gold futures dropped by about 0.6% or $11.1 to $1958.6 per ounce, and it is currently trading around the $1945 level.
Pivot point: 1951
| Resistance level | Support level |
| 1962 | 1932 |
| 1982 | 1920 |
| 1993 | 1901 |
Dow Jones Index (DJ30ft – US30)
US indices continued their upward trend in Tuesday’s session, supported by inflation data that strengthened expectations that the US Federal Reserve would not raise interest rates on Wednesday. Investors priced in a 93% chance that the US central bank would keep interest rates in the range of 5% to 5.25%.
The Dow Jones Industrial Average rose by approximately 0.4%, equivalent to about 145 points on Tuesday, extending its gains for the sixth consecutive session and achieving its highest close in four months.
Pivot point: 34195
| Resistance level | Support level |
| 34355 | 34065 |
| 34485 | 33905 |
| 34645 | 33775 |
US Crude (USOUSD)
Oil prices recorded gains of over 3% at the close of trading on Tuesday, June 13, amid expectations of a decline in crude demand and with the release of OPEC’s monthly report.
At the close, Brent crude futures rose by approximately $2.45 or 3.4% to $74.29 per barrel.
Pivot point: 68.75
| Resistance level | Support level |
| 70.35 | 67.65 |
| 71.40 | 66.05 |
| 73.00 | 65.00 |
Risk Warning
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