Market News Summary

European stocks rose at the end of trading on Thursday, supported by hopes for a breakthrough in the US public debt ceiling crisis. The German blue-chip index recorded its highest level in more than a year.

The European STOXX 600 index closed up 0.4%, with the auto and technology company indices leading the buying wave. The German DAX index rose 1.3%, marking its best performance since January 2022. Additionally, the French CAC 40 index increased by 0.6%, reaching its highest level in more than two weeks.

Billionaire Ray Dalio believes that the US will not be allowed to default on its debt, but he notes that lawmakers have not yet been able to come up with a viable long-term solution to the debt problem. This situation may eventually lead to a financial crisis.

Dollar index (USDX)

The US dollar consolidated its gains against a basket of major currencies, receiving additional support from yesterday’s unemployment data. The data indicated that unemployment benefits declined less than expected, both compared to previous readings and current expectations. This development motivates the Federal Reserve to maintain its tight monetary policy, further bolstering the dollar. The index is currently rising by 0.5%, surpassing the level of 103.21 points.

Pivot Point: 103.30

Spot Gold (XAUUSD)

Gold continued its decline on Thursday following robust new economic data in the United States, which dampened expectations of the Federal Reserve easing the pace of interest rate hikes. Additionally, the precious metal faced pressure due to optimism surrounding the possibility of reaching an agreement to raise the debt ceiling.

In the spot market, gold fell 1.3 percent to $1,956.79 per ounce, reaching its lowest level since April 3 at $1,951.73 earlier in the day.

Pivot Point: 1965

Dow Jones Index (DJ30ft – US30)

US indices closed with significant collective gains in yesterday’s session, Thursday, driven by increasing optimism about reaching an agreement on the US debt ceiling within days. Additionally, optimistic expectations surrounding Walmart provided further support.

Prominent Republican member of the US Congress, Kevin McCarthy, stated that it is possible to reach an agreement to raise or suspend the debt ceiling in time for a vote in the House of Representatives next week.

The Dow Jones rose by 0.34%, equivalent to 115 points, closing above 33,500 points. The S&P 500 rose by 0.9%, achieving its highest closing level in 9 months.

Walmart shares increased by 1.3% to $151.47 after the retail giant reported better-than-expected first-quarter earnings and raised its sales and profit forecasts for 2023.

Pivot Point: 33515

US Crude (USOUSD)

Oil prices declined by approximately 1% on Thursday following strong US economic data, which propelled the dollar to a two-month high. This development increased expectations of the Federal Reserve raising interest rates again in June.

Brent crude futures dropped by $1.10, or 1.4%, settling at $75.86 per barrel. US West Texas Intermediate crude fell by 97 cents, or 1.3%, settling at $71.86.

Pivot Point: 72.15

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