Stock Market Retreats Amidst Economic Uncertainty and Central Bank Meetings

market news summary

IMF Managing Director Kristalina Georgieva announced yesterday, Monday, June 19, that the IMF is working on creating a platform for central bank digital currencies to facilitate transactions between countries.

Georgieva believes that central bank digital currencies could also help enhance financial inclusion and reduce the cost of remittances, noting that the cost of money transfers amounts to around $44 billion annually.

European stock indices ended the week’s first session with a retreat amid investor uncertainty about economic expectations. At the end of the session, the STOXX600 index declined by about 1% to 462 points.

The German DAX also fell by 0.96% to 16,201 points, the French CAC dropped by 1.01% to 7,314 points, and the British FTSE decreased by around 0.71% to reach 7,588 points.

DOLLAR INDEX (USDX)

The dollar continued its trajectory yesterday, Monday, June 19, as investors remained focused on analyzing the outcomes of central bank meetings that took place last week, including the Bank of Japan’s decision to maintain its monetary easing policy, which keeps the yen weak.

The dollar index, which measures the performance of the U.S. currency against six other major currencies, rose by only 0.029% to 102.31%, remaining near its lowest level in a month at 102, which it touched on Friday.

Pivot point: 102.00

Resistance level	Support level
102.15	101.85
102.30	101.65
102.45	101.50

Spot Gold (XAUUSD)

Gold recorded some limited decline yesterday, Monday, June 19, under pressure from the strength of the dollar, as investors assess the future path of interest rates following statements from the Federal Reserve that hinted at future increases.

Spot gold prices declined by 0.2% to $1,953.69 per ounce, while U.S. gold futures also fell by 0.2% to $1,966.30.

Pivot point: 1952

Resistance level	Support level
1956	1945
1963	1941
1972	1934

Dow Jones Index (DJ30ft – US30)

It seems that the next test for the stock market will be the upcoming decision on the next interest rate by the Federal Reserve, expected at the end of next month, amid market expectations of an additional 25 basis points interest rate hike.

The Dow Jones Industrial Average declined by 0.17% to 34,460 points.

Pivot point: 34545

Resistance level	Support level
34620	34455
34715	34380
34790	34285

US Crude (USOUSD)

Global oil prices declined yesterday, Monday, June 19, retracting from the gains made in the previous week as concerns over China’s economy overshadowed OPEC+ production cuts and the reduction in the number of active oil and gas rigs in the United States for the seventh consecutive week.

Brent crude dropped by 68 cents to trade at $75.93 per barrel, while West Texas Intermediate (WTI) crude fell by 59 cents to $71.19.

Pivot point: 71.50

Support level	Resistance Level
70.75	72.20
70.05	72.95
69.35	73.65

Risk Warning

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