Initial Agreement Reached on the US Debt Ceiling

Market News Summary

European stocks rose at the end of Friday’s trading session, driven by renewed optimism regarding the negotiations on the US debt ceiling. However, the European market recorded weekly losses, and the Stoxx 600 index for Europe closed 1.2% higher after dropping to its lowest level since early April during three negative sessions.

Investors are still closely monitoring the US negotiations regarding the deal, which is progressing but in a “sensitive stage,” according to Republican Representative Patrick McHenry.

The Turkish lira declined against the dollar during the trading session on Sunday, May 28, coinciding with the outcome of the presidential election rerun in favor of Recep Tayyip Erdogan. The lira dropped by about 0.25% to 19.9801 lira per dollar, after reaching 20.05 lira per dollar at the start of international trading.

Dollar index (USDX)

The dollar index recorded a decrease of 0.27% to 104.055 points from the end of Friday’s trading to the start of today’s session, while maintaining stability near its pivotal point and above the $104 levels.

On Saturday, US President Joe Biden and Republican House Speaker Kevin McCarthy reached a preliminary agreement to raise the debt ceiling. The agreement includes cuts to certain aspects of federal spending.

Pivot Point: 104.06

Resistance level	Support level
104.40	103.80
104.65	103.45
105.25	102.90

Spot Gold (XAUUSD)

Gold futures rose slightly at the end of trading on Friday, May 26, relinquishing some of the gains made during the session amid the possibility of reaching an agreement on the US debt ceiling.

Upon settlement, gold futures increased by around 60 cents to $1944.30 per ounce, while recording a weekly loss of about 1.9%, marking the third consecutive weekly decline.

Pivot Point: 1946

Resistance level	Support level
1956	1936
1967	1926
1974	1909

Dow Jones Index (DJ30ft – US30)

US stocks closed higher on Friday, as progress was made in the talks regarding raising the US debt ceiling, while chip stocks jumped for the second consecutive day amid optimism about artificial intelligence.

The S&P 500 index closed up 1.31% at 4,205.46 points. The Nasdaq composite index rose 2.19% to 12,975.69 points, while the Dow Jones Industrial Average increased by 1% to 33,093.27 points at the close.

US indices opened today with upward price gaps after reaching a preliminary agreement in Congress to raise the US debt ceiling.

Pivot Point: 33025

Resistance level	Support level
33325	32850
33500	32550
33970	32185

US Crude (USOUSD)

Oil prices rose on Friday as US officials appeared to be nearing an agreement on the government’s debt ceiling, while the market assessed mixed signals regarding supplies from Saudi Arabia and Russia ahead of the next OPEC+ meeting on production policy.

Brent crude increased by 69 cents, or 0.9%, to $76.95 per barrel at settlement, while West Texas Intermediate (WTI) crude, the US benchmark, rose by 84 cents, or 1.2%, to $72.67 per barrel.

Pivot Point: 72.45

Resistance level	Support level
73.40	71.85
74.00	70.90
75.50	69.35

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