CFD Markets News and Forecasts — 17-07-2017

(raw materials / closing price /% change)

Oil 46.00 -0.04%

Gold 1,233.20 -0.04%

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

Nikkei +19.05 20118.86 +0.09%

TOPIX +6.37 1625.48 +0.39%

Hang Seng +81.35 26470.58 +0.31%

CSI 300 -39.53 3663.56 -1.07%

Euro Stoxx 50 -9.59 3516.35 -0.27%

FTSE 100 +25.74 7404.13 +0.35%

DAX -44.56 12587.16 -0.35%

CAC 40 -5.14 5230.17 -0.10%

DJIA -8.02 21629.72 -0.04%

S&P 500 -0.13 2459.14 -0.01%

NASDAQ +1.97 6314.43 +0.03%

S&P/TSX -9.45 15165.36 -0.06%

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

EUR/USD $1,1477 +0,09%

GBP/USD $1,3054 -0,36%

USD/CHF Chf0,96227 -0,12%

USD/JPY Y112,62 +0,08%

EUR/JPY Y129,27 +0,18%

GBP/JPY Y147,032 -0,27%

AUD/USD $0,7794 -0,41%

NZD/USD $0,7319 -0,37%

USD/CAD C$1,26959 +0,38%

01:30 Australia New Motor Vehicle Sales (YoY) June 4.9%

01:30 Australia New Motor Vehicle Sales (MoM) June 2.9%

01:30 Australia RBA Meeting's Minutes

08:30 United Kingdom Producer Price Index - Input (YoY) June 11.6% 8.7%

08:30 United Kingdom Producer Price Index - Input (MoM) June -1.3% -1%

08:30 United Kingdom Producer Price Index - Output (YoY) June 3.6% 3.3%

08:30 United Kingdom Producer Price Index - Output (MoM) June 0.1% 0.1%

08:30 United Kingdom HICP ex EFAT, Y/Y June 2.6% 2.6%

08:30 United Kingdom Retail prices, Y/Y June 3.7% 3.7%

08:30 United Kingdom Retail Price Index, m/m June 0.4% 0.3%

08:30 United Kingdom HICP, m/m June 0.3% 0.2%

08:30 United Kingdom HICP, Y/Y June 2.9% 2.9%

09:00 Eurozone ZEW Economic Sentiment July 37.7

09:00 Germany ZEW Survey - Economic Sentiment July 18.6 17.5

12:30 U.S. Import Price Index June -0.3% -0.2%

13:30 United Kingdom BOE Gov Mark Carney Speaks

14:00 U.S. NAHB Housing Market Index July 67 67

20:00 U.S. Total Net TIC Flows May 65.8

20:00 U.S. Net Long-term TIC Flows May 1.8

Major US stock indexes finished trading almost unchanged, as investors are cautious before the release of reports of major US companies.

This week, several large US companies, including Goldman Sachs (GS), Bank of America (BAC), Morgan Stanley (MS), Johnson & Johnson (JNJ), should publicize their financial results for the second quarter of 2017. IBM (IBM), Microsoft (MSFT), General Electric (GE), etc. Analysts polled by FactSet believe that S & P500 companies completed the second quarter with higher profits. Although this growth probably slowed slightly compared to the first quarter, when companies published the best results from 2011, positive signs in many sectors should support the growth of shares in the second half of the year.

A small influence on the dynamics of trading was provided by statistical data for the United States. The results of the studies published by the Federal Reserve Bank of New York showed that the region's production index fell significantly in June, and was worse than the average forecasts of economists. According to the data, the production index in the current month fell to +9.8 points compared to +19.0 points in June. The previous value was not revised. Economists had expected the deterioration of the index only to +15.0 points.

Most components of the DOW index recorded a decline (16 out of 30). Outsider were the shares of JPMorgan Chase & Co. (JPM, -1.02%). The maximum increase was shown in the shares of The Home Depot, Inc. (HD, + 0.81%).

Most sectors of the S & P index ended the session in positive territory. The conglomerate sector grew most (+ 0.4%). The health sector showed the greatest decline (-0.3%).

At closing:

DJIA -0.03% 21.631.74 -6.00

Nasdaq + 0.03% 6,314.43 +1.96

S & P -0.00% 2,459.16 -0.11

• Says libor controls now much tighter, but libor use to underpin $350 trillion of contracts "not desirable"

EURUSD: 1.1450 (EUR 910m) 1.1500 (485m)

USDJPY: 112.50 (USD 660m) 113.00 (560m) 113.50-55 (675m) 114.00-05 (935m)

GBPUSD: 1.2890-00 (GBP 350m) 1.3125 (330m) 1.3325 (460m)

AUDUSD: 0.7725 (AUD 210m) 0.7760-65 (590m)

U.S. stock-index futures were flat as investors stood on the sidelines ahead of a busy earnings week from big U.S. companies.

Global Stocks:

Nikkei -

Hang Seng 26,470.58 +81.35 +0.31%

Shanghai 3,176.50 -45.92 -1.42%

S&P/ASX 5,755.47 -9.65 -0.17%

FTSE 7,416.66 +38.27 +0.52%

CAC 5,233.89 -1.42 -0.03%

DAX 12,591.52 -40.20 -0.32%

Crude $46.53 (-0.02%)

Gold $1,232.80 (+0.43%)

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

Yandex N.V. (YNDX) downgraded to Hold from Buy at VTB Capital

General Electric (GE) resumed with an Equal-Weight at Morgan Stanley; target $27

Business activity grew modestly in New York State, according to firms responding to the July 2017 Empire State Manufacturing Survey. The headline general business conditions index fell ten points to 9.8. The new orders index moved down to 13.3, and the shipments index fell to 10.5, suggesting that orders and shipments continued to grow, though at a somewhat slower pace than in June. Delivery times continued to lengthen, and inventory levels were fairly steady.

Labor market indicators pointed to a small increase in employment and no change in hours worked. Input prices and selling prices rose at about the same pace as last month. Indexes assessing the six-month outlook suggested that firms remained positive about future conditions, though they were less optimistic than in June.

Foreign investment in Canadian securities amounted to $29.5 billion in May, mainly purchases of government debt instruments. At the same time, Canadian investors increased their holdings of foreign securities by $4.4 billion, led by investments in US debt instruments.

As a result, international transactions in securities generated a net inflow of funds of $25.1 billion in the Canadian economy, a second consecutive large monthly net inflow of funds.

Non-resident investment in Canadian bonds was $20.8 billion in May, the largest investment since March 2015. Record acquisitions of provincial government bonds, largely new issues denominated in foreign currencies, were the main contributors to investment activity in May. In addition, non-resident investors purchased $6.4 billion of corporate bonds and $4.3 billion of federal government bonds. Canadian long-term interest rates were down by seven basis points, a fourth straight monthly decline.

July 18

Before the Open:

Bank of America (BAC). Consensus EPS $0.44, Consensus Revenues $21838.01 mln.

Goldman Sachs (GS). Consensus EPS $3.39, Consensus Revenues $7474.50 mln.

Johnson & Johnson (JNJ). Consensus EPS $1.79, Consensus Revenues $18951.74 mln.

UnitedHealth (UNH). Consensus EPS $2.38, Consensus Revenues $50065.82 mln.

After the Close:

IBM (IBM). Consensus EPS $2.75, Consensus Revenues $19450.87 mln.

July 19

Before the Open:

Morgan Stanley (MS). Consensus EPS $0.78, Consensus Revenues $9052.06 mln.

After the Close:

Alcoa (AA). Consensus EPS $0.58, Consensus Revenues $2862.57 mln.

American Express (AXP). Consensus EPS $1.43, Consensus Revenues $8193.66 mln.

July 20

Before the Open:

Travelers (TRV). Consensus EPS $2.16, Consensus Revenues $6377.50 mln.

After the Close:

Microsoft (MSFT). Consensus EPS $0.71, Consensus Revenues $24292.83 mln.

Visa (V). Consensus EPS $0.81, Consensus Revenues $4358.23 mln.

July 21

Before the Open:

General Electric (GE). Consensus EPS $0.25, Consensus Revenues $29084.51 mln.

Honeywell (HON). Consensus EPS $1.77, Consensus Revenues $9880.21 mln.

• Russia, U.S. will ensure Israel's interests are taken into account when creating de-escalation zones in Syria

• U.S. attempts to set preconditions for return of russian diplomatic property are 'daylight robbery'

Euro area annual inflation was 1.3% in June 2017, down from 1.4% in May. In June 2016 the rate was 0.1%. European Union annual inflation was 1.4% in June 2017, down from 1.6% in May. A year earlier the rate was 0.1%. These figures come from Eurostat, the statistical office of the European Union.

The lowest annual rates were registered in Ireland (-0.6%), Denmark (0.4%) and Romania (0.7%). The highest annual rates were recorded in Lithuania (3.5%), Estonia and Latvia (both 3.1%). Compared with May 2017, annual inflation fell in eighteen Member States, remained stable in three and rose in six.

The largest upward impacts to the euro area annual inflation came from accommodation services (+0.08 percentage points), package holidays (+0.06 pp) and tobacco (+0.04 pp), while telecommunication (-0.10 pp), social protection (-0.04 pp) and bread & cereals (-0.03 pp) had the biggest downward impacts.

• It's time to get down to work and make this a successful negotiation

• Eu's Barnier says Brexit talks now to delve into the heart of the matter

• Economy still faces many international uncertainties, domestic structural problems

• Economy continues steady, improving momentum in H1

• 2017 property investment +8.5 pct y/y

China's gross domestic product expanded 6.9 percent on year in the second quarter of 2017, says rttnews.

That was unchanged from the previous quarter, and it exceeded expectations for a rise of 6.8 percent.

On a quarterly basis, GDP was up 1.7 percent - in line with expectations and up from 1.3 percent in the three months prior.

The bureau also said that retail sales jumped an annual 11.0 percent in June, beating forecasts for 10.6 percent and up from 10.7 percent in May.

Industrial production climbed 7.6 percent on year, topping expectations for an increase of 6.5 percent - which would have been unchanged from the previous month.

Fixed asset investment gained 8.6 percent on year - unchanged from the previous month and beating forecasts for 8.5 percent.

European stock markets largely finished lower Friday, with bank shares taking a hit after their U.S. peers kicked off a new earnings season, but regional equities on the whole marked their best weekly performance in more than two months.

Chinese equity markets tumbled shortly after trading began on Monday, dragged down by a plunge in small-cap stocks after an injection of liquidity by the nation's central bank spooked investors. On Monday, the People's Bank of Bank pumped a net 140 billion yuan ($20.68 billion) to the interbank market, the biggest such injection since June 6, ahead of a key data release, sending investors rushing to reposition their portfolios.

U.S. stocks closed higher Friday to score fresh records, following a mixed batch of corporate bank results and poor data on retail-sales and inflation, which led market participants to believe the Federal Reserve is firmly back in a dovish frame of mind.

EUR/USD

Resistance levels (open interest**, contracts)

$1.1551 (2728)

$1.1534 (1514)

$1.1510 (1722)

Price at time of writing this review: $1.1458

Support levels (open interest**, contracts):

$1.1403 (1562)

$1.1370 (1956)

$1.1332 (2416)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date August, 4 is 64157 contracts (according to data from July, 14) with the maximum number of contracts with strike price $1,1500 (4307);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3254 (2259)

$1.3198 (1708)

$1.3161 (2224)

Price at time of writing this review: $1.3099

Support levels (open interest**, contracts):

$1.3040 (523)

$1.2986 (302)

$1.2915 (1204)

Comments:

- Overall open interest on the CALL options with the expiration date August, 4 is 25938 contracts, with the maximum number of contracts with strike price $1,3100 (3034);

- Overall open interest on the PUT options with the expiration date August, 4 is 24359 contracts, with the maximum number of contracts with strike price $1,2800 (3055);

- The ratio of PUT/CALL was 0.94 versus 0.95 from the previous trading day according to data from July, 14

* - 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.