Market News Summary

Customs data revealed that China’s exports declined by 14.5% year-on-year in July, while imports contracted by 12.4%. This marks the worst performance for exports in the world’s second-largest economy since February 2020.

European stocks closed stable at the end of trading yesterday, Monday, as investors awaited inflation data from around the world this week, which will shape their expectations regarding interest rates. Defense industry stocks also reached record levels amid increasing geopolitical uncertainty.

The European STOXX 600 index edged up by approximately 0.09%, concluding at the 459-point mark. This occurred ahead of the upcoming release of inflation data from Germany, China, and the United States this week—a crucial factor that’s likely to influence the potential duration of elevated interest rates. In the UK, the FTSE 100 index experienced a slight decline of 0.1%, settling at 7554 points. Concurrently, the French CAC index saw a marginal increase of 0.1%, reaching the 7319-point level. Conversely, the German DAX index underwent a minor dip of around 0.01%, landing at 15950 points. This decrease was attributable to a 6.1% slump in Siemens shares.

Dollar Index (USDX)

The dollar slightly rose after Federal Reserve Bank official Michelle Bowman indicated that there might be a need for further interest rate hikes to curb inflation.

Currently, the dollar is trading near its pivotal point at 102.50 dollars.

Pivot point: 101.95

Resistance level	Support level
102.10	101.70
102.35	101.50
102.75	101.10

Spot Gold (XAUUSD)

Gold prices experienced a decline yesterday following insinuations from Federal Reserve Bank official Michelle Bowman that additional interest rate hikes might be necessary to counter inflation.

Gold futures retreated by 0.3% to $1970 per ounce. The price of gold in spot trading also dropped by 0.3% to $1936.44 per ounce.

Pivot point: 1938

Resistance level	Support level
1944	1929
1953	1923
1960	1914

Dow Jones Index (DJ30ft – US30)

US indices closed collectively higher in Monday’s session as investors sought to capitalize on lower price levels following the losses recorded by stocks in the previous week.

The Dow Jones index surged by 1.16%, equivalent to approximately 407 points, during Monday’s session, marking its largest daily gain in 7 weeks. The Nasdaq Composite index also rose by about 0.6%, although it remained below the 14,000-point threshold. Additionally, the S&P 500 climbed by 0.9% to reach the 4,518-point level.

Conversely, Tesla’s stock declined by approximately 0.9% yesterday, closing at its lowest point in 6 weeks. Its losses have reached 14% since reaching their peak on July 18th. These losses followed the surprise resignation of the company’s Chief Financial Officer, Zachary Kirkhorn, whom some analysts considered a potential successor to CEO Elon Musk.

Pivot point: 35435

Resistance level	Support level
35705	35290
35850	35020
36120	34875

US Crude (USOUSD)

Oil prices retreated by 1% on Monday during the settlement, following six consecutive weeks of gains, as investors braced for reduced demand from China and the United States, the world’s two largest economies.

Brent crude futures declined by 90 cents or 1.04% to $85.34 per barrel at the settlement, while West Texas Intermediate (WTI) crude futures, the American benchmark, dropped by 88 cents or 1.06% to $81.94 per barrel.

Pivot point: $82.40

Resistance level	Support level
83.30	81.55
84.15	80.65
85.05	79.80

Risk Statement:

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