Markets Are Cautiously Anticipating the “Week of Giants”

Market News Summary

The European Union is considering the possibility of extending price caps on gas amid concerns that conflicts in the Middle East and disruptions in the Baltic pipeline could lead to price increases again this winter.

On Saturday, the governor of the People’s Bank of China (the central bank), Pan Gongsheng, stated in a report that China would enhance sustainable economic recovery by focusing on expanding domestic demand while avoiding financial risks. Indeed, China’s economy grew at a faster pace than expected in the third quarter, and consumption and industrial activity unexpectedly increased in September as well, indicating that a set of recent policy measures is already helping to stimulate an unstable recovery.

Dollar Index (USDX)

The dollar index remains stable around its pivotal point at $106.10, as traders absorbed comments made by Federal Reserve Chairman Jerome Powell on Thursday, who left the door open for the potential need for further interest rate hikes.

Markets are anticipating several important data releases this week, from purchasing managers’ indices to Powell’s speech on October 25th.

Pivot Point: 106.00

Resistance level	Support level
106.15	105.80
106.35	105.65
106.50	105.45

Spot Gold (XAUUSD)

Gold continued its gains and achieved its second consecutive weekly gain at the close, as concerns about further escalation in the conflict in the Middle East increased the metal’s appeal as a safe haven.

Spot gold rose by 0.3% to $1,979.39 per ounce, and U.S. gold futures at the close increased by 0.7% to $1,994.40.

Pivot Point: 1983

Resistance level	Support level
1994	1969
2008	1958
2019	1944

Dow Jones Index (DJ30ft – US30)

Futures for stocks on Wall Street rose as traders are looking forward to earnings announcements from technology industry giants. These moves come after a challenging week for stocks, where concerns about rising interest rates sent the three major indices into negative territory.

Futures for the Dow Jones rose by 0.18%, S&P 500 futures increased by 0.23%, and Nasdaq futures were up by 0.15%.

Pivot Point: 33335

Resistance level	Support level
33450	33110
34675	32995
34790	32770

US Crude Oil (USOUSD)

Oil prices fell on October 23rd as humanitarian aid convoys reached the Gaza Strip at the beginning of the week. This occurred in the context of diplomatic efforts to contain the conflict between Israel and the Palestinian group Hamas and prevent its escalation across the oil-rich region.

Futures for Brent crude dropped by more than a dollar to $91.14 per barrel, and West Texas Intermediate (WTI) crude oil futures fell by over a dollar, trading at $87.03 per barrel.

Pivot Point: 88.55

Resistance level	Support level
89.60	87.30
90.85	86.25
91.90	84.95

Risk Warning

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