CFD Markets News and Forecasts — 11-07-2017

(index / closing price / change items /% change)

Nikkei +114.50 20195.48 +0.57%

TOPIX +11.66 1627.14 +0.72%

Hang Seng +377.58 25877.64 +1.48%

CSI 300 +17.12 3670.81 +0.47%

Euro Stoxx 50 -13.58 3464.48 -0.39%

FTSE 100 -40.27 7329.76 -0.55%

DAX -8.90 12437.02 -0.07%

CAC 40 -25.04 5140.60 -0.48%

DJIA +0.55 21409.07 +0.00%

S&P 500 -1.90 2425.53 -0.08%

NASDAQ +16.91 6193.31 +0.27%

S&P/TSX +43.85 15149.14 +0.29%

(pare/closed(GMT +2)/change, %)

EUR/USD $1,1464 +0,58%

GBP/USD $1,2845 -0,26%

USD/CHF Chf0,9635 -0,22%

USD/JPY Y113,95 -0,10%

EUR/JPY Y130,63 +0,49%

GBP/JPY Y146,37 -0,36%

AUD/USD $0,7635 +0,41%

NZD/USD $0,7221 -0,65%

USD/CAD C$1,2919 +0,25%

00:30 Australia Westpac Consumer Confidence July 96

04:30 Japan Tertiary Industry Index May 1.2% -0.5%

08:30 United Kingdom Average Earnings, 3m/y May 2.1% 1.8%

08:30 United Kingdom Average earnings ex bonuses, 3 m/y May 1.7% 1.9%

08:30 United Kingdom ILO Unemployment Rate May 4.6% 4.6%

08:30 United Kingdom Claimant count June 7.3 10

09:00 Eurozone Industrial Production (YoY) May 1.4% 3.6%

09:00 Eurozone Industrial production, (MoM) May 0.5% 1.1%

14:00 Canada Bank of Canada Rate 0.5% 0.5%

14:00 Canada Bank of Canada Monetary Policy Report

14:00 Canada BOC Rate Statement

14:00 U.S. Federal Reserve Chair Janet Yellen Testifies

14:30 U.S. Crude Oil Inventories July -6.299

15:15 Canada BOC Press Conference

18:00 U.S. Fed's Beige Book

18:15 U.S. FOMC Member Esther George Speaks

22:45 New Zealand Food Prices Index, y/y June 3.1%

Major US stock indexes finished trading near the zero mark, as investors are in anticipation of the Fed's speech and the start of the reporting season for the second quarter ..

Certain pressure on the market was provided by the reports confirming the connection between Trump and Russia. The son of the US president published a correspondence between him and Rob Goldstone, a former British journalist who was trying to organize a meeting with Russian businessmen offering dirt on Hillary Clinton, namely official documents and information about her with Russia. Soon informed sources said that the US Senate Intelligence Committee plans to request from Donald Trump Jr. the documents mentioned in the correspondence.

Investors' attention was also attracted by statistics on the United States. As the report, published today by the Ministry of Trade, showed, wholesale stocks in the US grew slightly more than expected in May. The Commerce Department reported that wholesale inventories rose 0.4% in May after a revised decline of 0.4% in April. Economists had expected reserves to grow by 0.3%, compared with a 0.5% decrease, which was originally reported for the previous month.

In addition, the Job Vacancy and Labor Force Survey (JOLTS), published by the US Bureau of Labor Statistics, showed that in May the number of vacancies fell to 5.666 million. Meanwhile, the indicator for April was revised downwards to 5.967 million from 6.044 million. Analysts had expected that the number of vacancies would drop only to 5.950 million. The vacancy rate was 3.7% compared with 3.9% in April.

Components of the DOW index finished the trades mixed (16 in the red, 14 in the black). The leader of growth was shares of General Electric Company (GE, + 1.36%). Outsider were shares of NIKE, Inc. (NKE, -0.89%).

Most sectors of the S & P recorded a rise. The sector of basic materials grew most (+ 0.6%). The largest decrease was shown in the financial sector (-0.2%).

At closing:

DJIA + 0.01% 21,409.69 +1.17

Nasdaq + 0.27% 6.193.31 +16.92

S & P -0.08% 2,425.54 -1.89

The number of job openings decreased to 5.7 million on the last business day of May, the U.S. Bureau of Labor Statistics reported today. Over the month, hires increased to 5.5 million and separations increased to 5.3 million. Within separations, the quits rate was little changed at 2.2 percent and the layoffs and discharges rate was unchanged at 1.1 percent. This release includes estimates of the number and rate of job openings, hires, and separations for the nonfarm sector by industry and by four geographic regions.

Total inventories of merchant wholesalers, except manufacturers' sales branches and offices, after adjustment for seasonal variations but not for price changes, were $593.9 billion at the end of May, up 0.4 percent (±0.4 percent)* from the revised April level. Total inventories were up 1.9 percent (±0.7 percent) from the revised May 2016 level. The April 2017 to May 2017 percent change was revised from the advance estimate of up 0.3 percent to up 0.4 percent.

USDJPY: 112.00 (USD 1.3bln) 112.50 (600m) 113.00 (790m) 115.00 (2bln)

GBPUSD: 1.2770-80 (GBP 515m) 1.2940-50 (500m) 1.3000-10 (850m)

EURGBP: 0.8775-85 (EUR 2.26bln) 0.8815-25 (515m)

AUDUSD: 0.7500 (AUD 555m)

EURJPY: 132.00 (EUR 520m)

• Establishing which court will have jurisdiction over residents right is the first, most important question in Brexit negotiations

• British citizens need not worry that they will be peremptorily sent back to Britain

U.S. stock-index futures were flat as investors were focused on tomorrow's testimony of the Fed Chair Janet Yellen before Congress, a batch of important economic data, including PPI, CPI and retail sales, which will be released on Thursday and Friday, and the kickoff of earnings season as well.

Global Stocks:

Nikkei 20,195.48 +114.50 +0.57%

Hang Seng 25,877.64 +377.58 +1.48%

Shanghai 3,203.18 -9.45 -0.29%

S&P/ASX 5,703.57 -55.20 -0.96%

FTSE 7,316.56 -53.47 -0.73%

CAC 5,149.89 -15.75 -0.30%

DAX 12,460.71 +14.79 +0.12%

Crude $44.02 (-0.86%)

Gold $1,210.20 (-0.25%)

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

Apple (AAPL) target to $132 from $130 at Deutsche Bank

Citigroup (C) initiated with a Hold at HSBC Securities

Exxon Mobil (XOM) upgraded to an Overweight from Equal Weight at Barclays

The trend in housing starts was 215,459 units in June 2017, compared to 214,570 units in May 2017, according to Canada Mortgage and Housing Corporation (CMHC). This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.

"The trend in housing starts for Canada reached its highest level in almost five years", said Bob Dugan, CMHC's chief economist. "So far this year, all regions are on pace to surpass construction levels from 2016 except for British Columbia, where starts have declined year-to-date after reaching near-record levels last summer."

In June, housing starts trended higher in Québec as a result of the construction of a large condominium project. However, in the conventional rental housing segment, year-to-date results show a 22 per cent decrease in housing starts compared to the same period in 2016. This decrease can be explained, in part, by the period of strong activity observed in this segment in 2015 and 2016 and the rise in the vacancy rate.

• The sums of money the EU is proposing to demand from Britain for Brexit deal "seem to be extortionate"

• European regional and local governments' funding needs to remain high; trends diverging

• Global energy investment fell 12 pct in 2016 to $1.7 trln

• Investments in electricity surpassed investments in oil and gas for the first time ever in 2016

In May 2017 the seasonally adjusted industrial production index increased by 0.7% compared with the previous month. The percentage change of the average of the last three months with respect to the previous three months was +0.2.

The calendar adjusted industrial production index increased by 2.8% compared with May 2016 (calendar working days in May 2017 being the same as in May 2016); in the period January-May 2017 the percentage change was +1.7 compared with the same period of 2016.

The unadjusted industrial production index increased by 2.8% compared with May 2016.

Romania's consumer price inflation accelerated in June after remaining stable in the prior month, figures from the National Institute of Statistics showed, cited by rttnews.

The consumer price index rose 0.9 percent year-over-year in June, faster than the 0.6 percent stable rate of increase in May. The measure has been rising since January.

Grocery prices grew 2.8 percent annually in June and non-food prices edged up by 0.2 percent. Meanwhile, costs for services decreased 1.0 percent.

On a monthly basis, consumer prices registered a mere rise of 0.04 percent in June.

USDJPY: 112.00 (USD 1.3bln) 112.50 (600m) 113.00 (790m) 115.00 (2bln)

GBPUSD: 1.2770-80 (GBP 515m) 1.2940-50 (500m) 1.3000-10 (850m)

EURGBP: 0.8775-85 (EUR 2.26bln) 0.8815-25 (515m)

AUDUSD: 0.7500 (AUD 555m)

EURJPY: 132.00 (EUR 520m)

EUR/USD

Resistance levels (open interest**, contracts)

$1.1531 (1333)

$1.1483 (2946)

$1.1455 (748)

Price at time of writing this review: $1.1388

Support levels (open interest**, contracts):

$1.1343 (1740)

$1.1312 (2322)

$1.1275 (2151)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date August, 4 is 59815 contracts (according to data from July, 10) with the maximum number of contracts with strike price $1,1500 (4079);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3063 (2335)

$1.3007 (1496)

$1.2968 (1133)

Price at time of writing this review: $1.2882

Support levels (open interest**, contracts):

$1.2806 (1773)

$1.2745 (2273)

$1.2669 (1775)

Comments:

- Overall open interest on the CALL options with the expiration date August, 4 is 23295 contracts, with the maximum number of contracts with strike price $1,3100 (2794);

- Overall open interest on the PUT options with the expiration date August, 4 is 21714 contracts, with the maximum number of contracts with strike price $1,2800 (2273);

- The ratio of PUT/CALL was 0.93 versus 0.94 from the previous trading day according to data from July, 10

* - 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.

• Says not central case, does expect inflation to accelerate to 2 pct next year

• Own view is to start adjustment of balance sheet in next few months

In June, UK retail sales increased by 1.2 per cent on a like-for-like basis from June 2016, when they had decreased 0.5 per cent from the preceding year.

On a total basis, sales rose 2.0 per cent in June, against a growth of 0.2 per cent in June 2016. This month's growth is below the 6-month and 12-month averages, both at 1.4 per cent.

Over the three months to June, food sales increased 3.6 per cent on a like-for-like basis and 4.7 per cent on a total basis. This is the strongest 3-month average since February 2012, and pulls the 12-month total average growth to 2.5 per cent, the highest since December 2013.

The trend estimate for the total value of dwelling finance commitments excluding alterations and additions fell 0.3%. Owner occupied housing commitments rose 0.4%, while investment housing commitments fell 1.5%.

In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 1.3%.

In trend terms, the number of commitments for owner occupied housing finance fell 0.4% in May 2017.

In trend terms, while the number of commitments for the construction of dwellings rose 1.0% and the number of commitments for the purchase of new dwellings rose 0.4%, the number of commitments for the purchase of established dwellings fell 0.6%.

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 14.0% in May 2017 from 13.8% in April 2017.

European stocks advanced Monday, with German equities climbing following data that exports from Europe's largest economy have soared. The gain, the index's biggest in a week, came after Germany's statistics office Destatis said German exports leapt 14.1% in May compared with a year ago in non-adjusted terms, on strong demand from outside the European Union.

Technology shares across the Asia-Pacific rose, tracking overnight strength in U.S. tech companies and boosting the region's equities markets early Tuesday.

U.S. stocks are off to a flat Monday start, treading water ahead of scheduled Federal Reserve remarks, later this week, combined with the beginning of second-quarter earnings season. Against this backdrop, the S&P 500 has maintained the 2,405 breakout point, while the Nasdaq Composite continues to press familiar resistance, circa 6,164.