CFD Markets News and Forecasts — 14-05-2018

Major US stock indices rose amid easing trade tensions between the United States and China after President Donald Trump softened his position on the Chinese technology company ZTE Corp.

US President Donald Trump told Twitter on Sunday that he was working to give the large Chinese manufacturer of ZTE smartphones a "way to quickly return to business" under the sanctions. A sudden and unexpected change in the US position is seen as a positive sign before the second round of US-China trade talks, which starts on Tuesday. Recall, the US Department of Commerce last month banned ZTE to buy components from US firms, which led the company to declare the closure of major business operations.

Investors also drew attention to the comments of the member of the Open Market Committee of the US Federal Reserve, Loretta Meister, who stated during today's speech that the Fed may have to make its monetary policy more restrained. "A gradual increase in rates will prevent overheating of the economy," Meister said. She also noted that improving economic prospects is an argument in favor of further increases in rates.

Most of the components of DOW have finished trading in positive territory (19 out of 30). The leader of growth was UnitedHealth Group Incorporated (UNH, + 1.84%). Outsider were shares of Johnson & Johnson (JNJ, -1.20%).

Most S & P sectors recorded a decline. The greatest decrease was shown by the sector of conglomerates (-1.5%). The commodities sector grew most (+ 0.9%).

At closing:

Index

Dow 24,902.65 +71.48 +0.29%

S&P 500 2,730.13 +2.41 +0.09%

Nasdaq 100 7,411.31 +8.43 +0.11%

• Forecasts industrial output at 1.3-1.8 pct in april, y/y

• Q2 gdp growth to slow to 1-1.4 pct, y/y, due to high base effect in 2017

U.S. stock-index futures were higher on Monday on optimism over waning U.S.-China trade tensions, bolstered by the U.S. president President Donald Trump's Sunday tweet about order to the U.S. Commerce Department to " to give massive Chinese phone company, ZTE, a way to get back into business, fast."

Global Stocks:

General Electric (GE) initiated with a Buy at Gabelli & Co.

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

• Our latest analyses, presented in march 2018, suggest that the key policy rate will most likely be raised after summer 2018

• Says at the same time, board has given weight to consideration that uncertainty as to the effects of a higher interest rate suggests a cautious approach to rate setting

• Economic activity is now approaching a normal level, and inflation is projected to move up in the period ahead

Caterpillar (CAT) target lowered to $174 from $176 at Stifel

• OECD oil inventories declined in march to stand 9 million barrels above latest 5-year average - closest yet to supply cut deal's original target

• U.S. economy is slightly beyond level of full employment

• Doesn't expect inflation to pick up sharply

• Impact of U.S. tax cuts and government spending on economy still uncertain

• Uncertainty over U.S. trade policy could cause firms to alter spending plans in the near term

• Says without doubt our communication will be adjusted given that current rates guidance is explicitly conditioned on the end of net asset purchases

• Sight deposits of domestic banks at 472.752 bln sfr in week ending may 11 versus 473.801 bln sfr a week earlier

• Agreed with Trump for talks to take place on the potential impact of U.S. sanctions on those firms which are conducting business in Iran

• Agreed on the importance of tackling Iran's destabilising activity in the region

EUR/USD

Resistance levels (open interest**, contracts)

$1.2070 (4551)

$1.2025 (681)

$1.1999 (286)

Price at time of writing this review: $1.1957

Support levels (open interest**, contracts):

$1.1847 (3996)

$1.1812 (2734)

$1.1773 (2752)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date June, 8 is 152031 contracts (according to data from May, 11) with the maximum number of contracts with strike price $1,1500 (10247);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3721 (1378)

$1.3692 (1603)

$1.3645 (832)

Price at time of writing this review: $1.3561

Support levels (open interest**, contracts):

$1.3450 (1636)

$1.3422 (2398)

$1.3389 (1251)

Comments:

- Overall open interest on the CALL options with the expiration date June, 8 is 38108 contracts, with the maximum number of contracts with strike price $1,3700 (2492);

- Overall open interest on the PUT options with the expiration date June, 8 is 40308 contracts, with the maximum number of contracts with strike price $1,3500 (2398);

- The ratio of PUT/CALL was 1.06 versus 1.05 from the previous trading day according to data from May, 11.

* - 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.