European Markets Respond to Political Uncertainty

market news summary

European indicators stabilized at the close of yesterday’s session, Monday, July 24, after digesting the results of the general elections in Spain, which were inconclusive. The STOXX600 index ended the session at 465 points, while the German DAX remained stable at 16190 points. The FTSE British index rose by 0.19%, reaching 7678 points, and the French CAC settled at 7427 points.

Economic data revealed a contraction in Germany’s composite Purchasing Managers’ Index (PMI) at 48.3 points in July, marking the first contraction since January. Investors are now awaiting the decision of the European Central Bank (ECB) this week, which is expected to raise interest rates by 25 basis points, following the lead of the U.S. Federal Reserve.

Dollar index (USDX)

The dollar index rose by 0.27% to reach 101.15 dollars this week, as investors await the interest rate hike expected tomorrow, Wednesday, and the markets remain cautious ahead of the Federal Open Market Committee (FOMC) press conference.

Pivot point: 100.95

Resistance level	Support level
101.30	100.75
101.50	100.40
101.80	100.25

Spot Gold (XAUUSD)

Gold futures prices traded within a narrow range and settled unchanged on Monday, as investors await the upcoming meeting of the U.S. Federal Reserve this week. Market expectations suggest that the Federal Reserve is likely to pause its interest rate hikes starting from this July.

The spot gold price remained stable at $1,959 per ounce, while gold futures prices declined by approximately 0.2% to $1,962.20 per ounce.

Pivot point: 1958

Resistance level	Support level
1963	1958
1973	1949
1978	1934

Dow Jones Index (DJ30ft – US30)

On Monday’s session, U.S. markets closed with collective gains as investors placed their bets on non-tech sectors ahead of several key company earnings reports scheduled for this week, in addition to the upcoming interest rate decision on Wednesday. Investors are eagerly awaiting the earnings reports of Microsoft, Alphabet, and Meta this week, which will reveal whether their stocks justify their high valuations.

The Dow Jones Industrial Average rose by 0.52%, equivalent to around 183 points, extending its winning streak for the 11th consecutive session, marking the longest daily gain streak in 6 years.

Pivot Point: 35520

Resistance level	Support level
35415	35695
35235	35800
35130	35975

US Crude (USOUSD)

Oil prices rose by about 2% at the close on Monday, approaching their highest level in three months, supported by supply constraints, increased fuel demand in the United States, and hopes for Chinese stimulus measures.

Brent crude futures climbed $1.76, or 2.1%, to settle at $82.74 per barrel, marking the highest closing price for the commodity since April 19.

Similarly, West Texas Intermediate (WTI) crude oil surged $1.75, or 2.1%, to reach $78.74 per barrel at the close, the highest closing level since April 24.

Pivot point: 78.20

Resistance level	Support level
79.95	77.10
81.00	75.35
81.80	74.30

Risk Warning

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