Positive Data Brings Back Concerns About High Interest Rates

Market News Summary

Chinese electric car company stocks fell after Tesla reported disappointing financial results and negative expectations about the company’s future spread. This was the first time since the second quarter of 2019 that Tesla achieved quarterly profits and revenues below expectations.

As for Netflix, the company announced its quarterly results for the third quarter of 2023 yesterday, which showed strong performance, supported by the company’s efforts to prevent password sharing, which increased the number of subscribers to its services.

Dollar Index (USDX)

The US dollar rose after data showed US single-family home construction rebounded in September, raising concerns that interest rates will remain high for longer.

The dollar index is now trading above its pivot point at $106.45.

Pivot Point: 106.20

Resistance level	Support level
106.55	105.95
106.80	105.55
107.20	105.30

Spot Gold (XAUUSD)

Gold prices were traded near their highest level in two and a half months on Thursday, October 19th, as escalating tensions in the Middle East boosted demand for the safe-haven asset. Investors are also awaiting a speech by the US Federal Reserve Chairman Jerome Powell later in the day.

Spot gold settled at $1,947.45 per ounce after reaching its highest level since August 1st on Tuesday. US gold futures dipped 0.4% to $1,959.70.

Pivot Point: 1944

Resistance level	Support level
1965	1926
1983	1905
2004	1886

Dow Jones Index (DJ30ft – US30)

US stock indices closed with sharp losses on Wednesday as bond yields rose again, and investors evaluated third-quarter corporate earnings expectations. Yields increased after data showed a recovery in single-family home construction in the United States in September, raising concerns about the possibility of interest rates remaining high for longer.

US indices recorded their largest daily losses in two weeks, with the Dow Jones falling by approximately 1%, equivalent to around 332 points, and the Nasdaq dropping by about 1.6%.

Pivot Point: 33900

Resistance level	Support level
34065	33655
34310	33490
34475	33245

US Crude Oil (USOUSD)

Oil prices fell during trading on Thursday, October 19, erasing the gains made in the previous session. This decline was due to OPEC’s lack of support for Iran’s call to impose an oil embargo on Israel.

Additionally, the United States eased sanctions on Venezuela, allowing more of its oil to flow globally. This move may alleviate the pressures on global oil prices amid the conflict between Israel and Hamas, sanctions on Russia, and decisions by the OPEC+ alliance to reduce production.

Pivot Point: 87.30

Resistance level	Support level
88.35	86.05
89.60	84.95
90.65	83.75

Risk Warning

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