The US House of Representatives is Voting on Raising the Debt Ceiling
European stocks recorded their lowest level in two months on Wednesday, as concerns over global slowdown outweighed optimism about easing inflation in some major eurozone economies amidst weak economic data from China and uncertainty surrounding the US debt ceiling agreement. The European Stoxx 600 index closed down 1.1%, reaching its lowest level since March 30th.
The House of Representatives is set to vote on the bill to raise the debt ceiling, which stands at $31.4 trillion. This is a crucial step to avoid defaulting on payments, which could occur next week if Congress does not approve the measure.
The Ministry of Labor reported that job vacancies in the United States unexpectedly increased in April, indicating ongoing strength in the labor market and putting pressure on wages and inflation.
The US dollar index regained its upward momentum today, rising by 0.36% to reach 104.450 dollars, hitting its highest level in two months. Meanwhile, unexpectedly strong labor market data emerged, unsettling investors who fear that the Federal Reserve may raise interest rates again in June.
| Resistance level | Support level |
| 104.50 | 103.85 |
| 104.85 | 103.55 |
| 105.15 | 103.15 |
Gold rose yesterday, Wednesday, supported by a decline in Treasury bond yields. However, the dollar’s strength, expectations of interest rate hikes, and optimism regarding the US debt ceiling agreement are causing gold to head for its first monthly decline in three months.
Spot gold prices rose by 0.4% to $1,966.89, but gold has declined by 1.1% this month. US gold futures recorded a 0.3% increase to $1,982.10 upon settlement.
| Resistance level | Support level |
| 1973 | 1952 |
| 1984 | 1942 |
| 1994 | 1931 |
In yesterday’s Wednesday session, the Dow Jones Industrial Average fell by approximately 0.4%, or 134 points, closing near its lowest levels in two months. Throughout the month, the Dow Jones has declined by about 3.5%, marking its second monthly decline in 2023.
The S&P 500 index also declined by about 0.6% in yesterday’s Wednesday session, but it maintained monthly gains of approximately 0.25%, achieving an increase for the third consecutive month.
Similarly, the Nasdaq Composite index dropped by about 0.6%. Still, it held onto monthly gains of around 5.8%, achieving an increase for the third consecutive month and the highest monthly closing since March 2022.
| Resistance level | Support level |
| 33067 | 32790 |
| 33210 | 32650 |
| 33345 | 32510 |
Oil prices declined yesterday, Wednesday, at the close, influenced by the strength of the dollar and weak data from China, the world’s largest crude oil importer, which raised concerns about demand.
Brent crude futures for July delivery dropped by 1.2%, or 88 cents, to close at $72.66 per barrel. Meanwhile, West Texas Intermediate (WTI) crude oil declined by $1.37, or 1.97%, to $68.09 per barrel.
| Resistance level | Support level |
| 69.15 | 66.45 |
| 70.70 | 65.40 |
| 71.75 | 63.85 |
This material provides real-time market analysis from contributing analysts. Please note that any views expressed in this material do not constitute operational advice. It is important to assess your risk tolerance and make independent trading decisions. STARTRADER holds no responsibility for any trading consequences that may arise from relying on the views expressed in this material.
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