Market News Summary
European stock indices ended the Tuesday session higher, driven by the strong performance of technology sector stocks, while also keeping an eye on fluctuations in the bond market.
At the session’s close, the STOXX600 index rose by about 0.68% to 451 points, while the German DAX ended the session with a 0.66% increase, reaching 15,705 points. The French CAC also rose by 0.59% to 7,240 points, and the British FTSE increased by about 0.18% to 7,270 points.
The Bank of England warned that British companies are facing a greater risk of defaulting on their debts, posing a threat to investment and employment, due to rising interest rates. The bank added in a report issued yesterday, Tuesday, August 22nd, that the proportion of non-financial British companies facing debt service pressure (companies with low-profit rates relative to interest expenses) will rise to 50% by the end of this year, compared to 45% in 2022.
Dollar Index (USDX)
Economic data from the United States released yesterday indicated a month-on-month decrease of around 2.2% in existing home sales for July. The fluctuations in the dollar and bond yields persistently affect various other financial assets, with investors eagerly awaiting statements from Federal Reserve Chair Jerome Powell scheduled for Friday.
The dollar index is currently trading near its pivotal point at $103.45.
Pivot point: 103.35
| Resistance level | Support level |
| 103.75 | 103.05 |
| 104.05 | 102.65 |
| 104.45 | 102.35 |
Spot Gold (XAUUSD)
Gold prices rose at the close of yesterday’s session, marking the third consecutive increase in the longest streak of daily gains for the most active contract since July 14th.
At the settlement, gold futures rose by approximately 0.2% or $3 to $1926 per ounce, and the price of gold in the spot market increased to $1901 per ounce.
Pivot point: 1896
| Resistance level | Support level |
| 1904 | 1889 |
| 1912 | 1881 |
| 1920 | 1874 |
Dow Jones Index (DJ30ft – US30)
The U.S. indices closed with mixed results in Tuesday’s session, amidst a sharp decline in bank stocks and persistent investor concerns that the U.S. Federal Reserve will keep interest rates elevated for a longer period. The yield on the 10-year Treasury bond, a benchmark, reached its highest level in about 16 years, sparking fears that rising borrowing costs could slow down corporate and consumer spending.
The Dow Jones index fell by around 0.5%, equivalent to about 175 points, marking its lowest close in approximately 6 weeks. JPMorgan’s stock dropped over 2% to its lowest levels in 6 weeks, causing the bank to lose more than $9 billion in market value in a single day.
Pivot point: 34435
| Resistance level | Support level |
| 34565 | 34220 |
| 34780 | 34090 |
| 34910 | 33877 |
US Crude (USOUSD)
Oil prices declined at the close on Tuesday, driven by increased concerns over a potential decrease in demand from China, the largest importer of crude.
Brent crude dropped by 43 cents or 0.5% to $84.03 per barrel, while West Texas Intermediate (WTI) crude, the U.S. benchmark, slid by 48 cents to $79.64 per barrel.
Pivot point: $79.80
| Resistance level | Support level |
| 80.15 | 79.25 |
| 80.75 | 78.85 |
| 81.25 | 78.35 |
Risk Statement:
All investments entail risks and can result in both profits and losses. Leveraged products, in particular, may not be appropriate for all investors as the effect of leverage is that both gains and losses are magnified. Before deciding to invest in any financial product, you should carefully consider your investment objectives, financial knowledge and experience and affordability as the prices of leveraged products may change to your disadvantage very quickly, it is possible for you to lose more than your invested capital and you may be required to make further payments.
