Market Summary
European markets ended Wednesday in the red as fresh economic indicators fueled speculation of upcoming rate hikes in both the UK and Sweden. At the same time, signs of a slowdown in China raised the risk of a global economic downturn, further rattling investor sentiment.
The STOXX600 slipped by nearly 0.9%, closing at 455 points after hitting a one-month low earlier in the session. London’s FTSE100 dropped approximately 1.57% to 7389, while Stockholm’s index shed over 1%. France’s CAC40 declined by 1.10% to 7267, and Germany’s DAX closed down 0.86%, settling at 15767.
In Russia, the central bank responded to the ruble’s recent volatility with an emergency rate hike, raising the key interest rate by 350 basis points to 12% in an effort to stabilize the currency.
Dollar Index (USDX)
The U.S. Dollar Index climbed to its highest level in over a month, breaking past the 103 mark. This surge followed a stronger-than-expected 0.7% increase in U.S. retail sales for the previous month, beating forecasts of a 0.4% rise. The data reaffirmed the strength of the U.S. economy, adding weight to expectations of extended monetary tightening by the Federal Reserve.
- Pivot Point: 102.95
- Resistance Levels: 103.25 • 103.45 • 103.75
- Support Levels: 102.75 • 102.45 • 102.25
Spot Gold (XAU/USD)
Gold prices edged lower on Tuesday, pressured by a strengthening dollar and climbing bond yields. Despite rising expectations that the Fed will maintain higher interest rates for an extended period, gold hovered near its six-week low, reflecting investor caution.
The spot price settled at $1907.60 per ounce, after dipping to $1895.50, its lowest since June 29.
- Pivot Point: 1903
- Resistance Levels: 1910 • 1918 • 1925
- Support Levels: 1894 • 1887 • 1879
Dow Jones Industrial Average (DJ30ft – US30)
U.S. stock indices recorded significant losses on Tuesday after stronger-than-expected retail sales data fueled concerns that interest rates could remain elevated longer than anticipated. Adding to the market pressure was a warning from Fitch about possible downgrades in bank credit ratings, which hit financial stocks hard.
The Dow Jones slid by 1.02%, or about 361 points, posting its steepest daily drop in five weeks and falling below the 35,000 mark. JP Morgan shares fell by roughly 2.5%, wiping out around $11 billion in market value — the bank’s worst single-day loss in over four months.
- Pivot Point: 35,125
- Resistance Levels: 35,290 • 35,575 • 35,745
- Support Levels: 34,835 • 34,665 • 34,380
U.S. Crude Oil (USOUSD)
Crude oil prices slid over 1% on Tuesday, dragged down by weak economic data out of China and growing fears of another U.S. rate hike that could dampen global demand.
Brent crude futures declined by $1.32 (−1.5%) to settle at $84.89 per barrel. West Texas Intermediate (WTI) dropped by $1.52 (−1.8%) to finish at $80.99 per barrel.
- Pivot Point: 81.45
- Resistance Levels: 82.50 • 83.95 • 85.00
- Support Levels: 79.95 • 78.90 • 77.50
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