Optimism in the US Markets
Market news summary
European stocks fell at the close on Wednesday as sentiment was affected by concerns about the United States potentially defaulting on its obligations. Additionally, a series of negative data from companies contributed to the negative sentiment. The European STOXX 600 index closed down 0.2%, with food and beverage companies, utilities, and real estate being the most affected sectors.
In contrast, the main indices on Wall Street experienced a significant increase at the end of trading on Wednesday. This surge was supported by optimism surrounding a potential agreement to raise the US government’s debt ceiling, which currently stands at $31.4 trillion. Furthermore, the recovery of bank shares helped alleviate concerns about crises within the sector.
US President Joe Biden and Republican Congressional Leader Kevin McCarthy both emphasized their intention to reach an agreement promptly to raise the debt ceiling. By doing so, they aimed to prevent the government from defaulting on its obligations, which could have severe economic consequences.
Dollar index (USDX)
The dollar index remains stable above $102 levels, receiving positive support from various economic data. Investors are eagerly awaiting the release of unemployment claims today, which are expected to decrease from the previous reading of 264,000 to 253,000. Additionally, the market is anticipating an important speech by Federal Reserve Chairman Jerome Powell tomorrow.
Pivot point: 102.67
| Support Level | Resistance level |
| 102.39 | 102.97 |
| 102.09 | 103.25 |
| 101.81 | 103.55 |
Spot Gold (XAUUSD)
Gold futures declined at the close of trading on Wednesday, May 17, due to the influence of a strong dollar following hawkish statements made by Federal Reserve officials. These statements created doubts about potential interest rate cuts throughout the year.
At settlement, gold futures dropped by 0.4%, or $8.10, to $1,984.90 per ounce. This represents the lowest level observed since the end of March.
Pivot Point: 1983
| Support level | Resistance level |
| 1973 | 1991 |
| 1965 | 2001 |
| 1955 | 2009 |
Dow Jones Index (DJ30ft – US30)
US indices concluded Wednesday’s session with significant collective gains, driven by optimism surrounding a potential agreement on the federal debt ceiling crisis, as well as the recovery of regional bank stocks.
The Dow Jones increased by 1.24%, representing a gain of over 400 points, and closed above the 50-day moving average. Meanwhile, the S&P 500 climbed 1.2% to reach its highest level since the beginning of this year.
Pivot point: 33350
| Support level | Resistance level |
| 33165 | 33645 |
| 32875 | 33830 |
| 32685 | 34120 |
US Crude (USOUSD)
Oil prices experienced an increase of nearly $2 per barrel during Wednesday’s settlement. This surge was driven by optimism surrounding oil demand and ongoing negotiations to raise the US debt ceiling, which outweighed concerns related to supply.
Brent crude futures rose by $2.05, equivalent to a 2.7% increase, settling at $76.96 per barrel. Similarly, US West Texas Intermediate crude saw a rise of $1.97, equivalent to a 2.8% increase, settling at $72.83 per barrel.
Pivot point: 71.95
| Support level | Resistance level |
| 70.70 | 73.90 |
| 68.75 | 75.15 |
| 67.50 | 77.10 |
Risk Warning
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