CFD Markets News and Forecasts — 08-06-2018

Total inventories of merchant wholesalers, except manufacturers' sales branches and offices, after adjustment for seasonal variations but not for price changes, were $630.2 billion at the end of April, up 0.1 percent from the revised March level. Total inventories were up 5.8 percent from the revised April 2017 level. The March 2018 to April 2018 percent change was revised from the advance estimate of virtually unchanged (±0.2 percent)* to up 0.1 percent.

The April inventories/sales ratio for merchant wholesalers, except manufacturers' sales branches and offices, based on seasonally adjusted data, was 1.28. The April 2017 ratio was 1.30.

U.S. stock-index futures fell on Thursday, as Apple's (AAPL; -1.5%) shares declined on the back of the Nikkei Asian Review's article about lower new iPhone part orders, while investors remained cautious ahead of the start of the G7 summit in Canada.

Global Stocks:

• Need solution on Ireland border by autumn

• Looking at framework of new relationship

• Not going to be intimidated by blame game

• Need more realism about what is possible

• Don't accept a à la carte approach to single market

(company / ticker / price / change ($/%) / volume)

Exxon Mobil (XOM) initiated with a Neutral at Mizuho; target $81

Chevron (CVX) initiated with a Buy at Mizuho; target $145

Tesla (TSLA) target raised to $450 from $420 at Nomura

Canadian industries operated at 86.1% of their production capacity in the first quarter, up from 85.6% in the previous quarter. This was the seventh consecutive quarterly gain and the longest sequence of increases since the third quarter of 2009 to the first quarter of 2011.

The increase in the first quarter of 2018 was mainly attributable to the construction sector and, to a lesser extent, the manufacturing sector.

The capacity utilization rate in the construction industry posted a seventh consecutive quarterly increase, rising from 90.8% in the fourth quarter to 92.4% in the first quarter. As in the previous quarter, the gain was due to a widespread increase in construction activity.

On a year-over-year basis, employment grew by 238,000 or 1.3%, due to gains in full-time work. Over the same period, total hours worked were up 2.0%

In May, employment decreased for people in the core working ages of 25 to 54. It increased for people aged 55 and older, and was little changed among youth aged 15 to 24.

Employment increased in Prince Edward Island, while it decreased in British Columbia and Nova Scotia. There was little change in the other provinces.

There were employment increases in four industries in May: accommodation and food services; professional, scientific and technical services; transportation and warehousing; and finance, insurance, real estate, rental and leasing. At the same time, employment declined in health care and social assistance, manufacturing, construction, and "other services."

In April 2018, output grew again in the manufacturing industry (+0.4%, after +0.3% in March), whereas it diminished again in the whole industry (−0.5% after −0.4%).

Manufacturing output dropped sharply over the last three months (−1.1%). It decreased in the overall industry (−0.5%).

Output decreased markedly in the manufacture of transport equipment (−3.8%) and more moderately in "other manufacturing" (−0.9%). It tumbled in the manufacture of coke and refined petroleum products (−6.4%) and diminished in the manufacture of machinery and equipment goods (−0.5%). Conversely, it grew sharply in mining and quarrying, energy, water supply (+2.3%) and in the manufacture of food products and beverages (+1.2%).

EUR/USD

Resistance levels (open interest**, contracts)

$1.1952 (2554)

$1.1903 (2407)

$1.1858 (4374)

Price at time of writing this review: $1.1780

Support levels (open interest**, contracts):

$1.1730 (3959)

$1.1692 (4736)

$1.1646 (3000)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date June, 8 is 167285 contracts (according to data from June, 7) with the maximum number of contracts with strike price $1,1500 (6079);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3555 (1375)

$1.3510 (1492)

$1.3473 (1855)

Price at time of writing this review: $1.3418

Support levels (open interest**, contracts):

$1.3393 (1144)

$1.3371 (2547)

$1.3337 (2284)

Comments:

- Overall open interest on the CALL options with the expiration date June, 8 is 41663 contracts, with the maximum number of contracts with strike price $1,3600 (2116);

- Overall open interest on the PUT options with the expiration date June, 8 is 44094 contracts, with the maximum number of contracts with strike price $1,3400 (2495);

- The ratio of PUT/CALL was 1.06 versus 1.07 from the previous trading day according to data from June, 7.

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

Japan's gross domestic product was down 0.2 percent on quarter in the first three months of 2018 according to rttnws.

That was unchanged from the May 16 preliminary reading, although it defied expectations for an upward revision to -0.1 percent.

On a yearly basis, GDP was also unchanged at -0.6 percent, missing forecasts for -0.4 percent.

In the fourth quarter of 2017, GDP was up 0.1 percent on quarter and 0.6 percent on year.

"Why isn't the European Union and Canada informing the public that for years they have used massive Trade Tariffs and non-monetary Trade Barriers against the U.S. Totally unfair to our farmers, workers & companies. Take down your tariffs & barriers or we will more than match you!"

Germany exported goods to the value of 110.3 billion euros and imported goods to the value of 89.9 billion euros in April 2018. Based on provisional data, the Federal Statistical Office (Destatis) also reports that German exports increased by 9.3% and imports by 8.2% in April 2018 year on year. After calendar and seasonal adjustment, exports fell by 0.3% while imports rose by 2.2% compared with March 2018.

The foreign trade balance showed a surplus of 20.4 billion euros in April 2018. In April 2017, the surplus amounted to 17.8 billion euros. In calendar and seasonally adjusted terms, the foreign trade balance recorded a surplus of 19.4 billion euros in April 2018.

In April 2018,production in industry was down by 1.0% from the previous month on a price, seasonally and calendar adjusted basis according to provisional data of the Federal Statistical Office (Destatis). In March 2018, the corrected figure shows an increase of 1.7% (primary +1.0%) from February 2018.

In April 2018, production in industry excluding energy and construction was down by 1.7%. Within industry, the production of capital goods decreased by 1.3% and the production of consumer goods by 2.1%. The production of intermediate goods showed a decrease by 2.0%. Energy production was down by 1.6% in April 2018 and the production in construction increased by 3.3%.