market news summary

There has been no significant change in the number of Americans filing new claims for unemployment benefits last week, as it remained at its highest level in 20 months for the third consecutive week. This may indicate weakness in the labor market amid the Federal Reserve’s strong campaign to tighten credit.

It is expected that the stock market rally, which lifted the S&P 500 index by about 14% in the first half of this year, will fade during the second half as the U.S. economy approaches a recession, according to JPMorgan.

European stocks briefly hit their lowest levels in about three months yesterday, with the London Stock Exchange falling after the Bank of England raised interest rates by a larger-than-expected margin.

The Stoxx 600 index closed down 0.5% amid concerns about major central banks continuing to tighten monetary policy. The FTSE 100 index lost 0.8% after the Bank of England announced a half-point increase in interest rates to 5%.

Dollar index (USDX)

Financial markets have priced in a 77% probability of a 25-basis-point interest rate hike at the upcoming policy meeting in July. This comes as the Federal Reserve Chairman reiterated his view, in his testimony before the Senate, which suggests further interest rate increases in the coming months.

The dollar index has strengthened significantly, reaching levels of 102.25.

Pivot point: 101.85

Spot Gold (XAUUSD)

Gold prices are heading for their biggest weekly loss since February, as the dollar gains support from expectations of interest rate hikes by the Federal Reserve this year. This has pushed the yellow metal to its lowest level in over three months.

Spot gold fell 0.1% to $1,911.32 per ounce, marking a 2.4% decline for the week. US gold futures also dropped 0.1% to $1,921.20.

Pivot point: 1920

Dow Jones Index (DJ30ft – US30)

US stock indexes closed with mixed results in yesterday’s Thursday session, with technology stocks shining on one hand and Jerome Powell’s reaffirmation of his tight policy stance on the other.

The Dow Jones Industrial Average edged down by a minimal 0.01%, or approximately 5 points, marking its fourth consecutive daily decline.

Meanwhile, the S&P 500 index rose by around 0.4% after three consecutive sessions of decline. The Nasdaq Composite index also increased by 0.95%, supported by the rise of Amazon and Apple shares to new record levels.

Pivot point: 34200

US Crude (USOUSD)

There hasn’t been a significant change in oil prices in early trading today, Friday, June 23rd, but they are heading towards a weekly decline of 3% due to concerns about fuel demand following a larger-than-expected interest rate hike in the UK and warnings of a looming interest rate hike in the US.

Brent crude futures slipped by seven cents, or 0.1%, to $74.07 per barrel, while West Texas Intermediate (WTI) futures for US crude decreased by 11 cents, or 0.2%, to $69.40.

The market is now awaiting the release of Purchasing Managers’ Index (PMI) data from various regions worldwide today, Friday, to assess manufacturing activity and demand trends.

Pivot point: 70.35

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