CFD Markets News and Forecasts — 25-06-2018

Major US stock indexes have dropped significantly, and the technological and industrial sectors have felt the brunt of escalating trade dispute between the US and other major economies.

On Sunday, US President Trump turned to Twitter to all countries with "artificial trade barriers," with the requirement to cancel them or otherwise the United States will respond to them "more than reciprocated." Later in the WSJ reported that the White House is preparing new barriers to investment from China in the US high-tech companies. However, today the US Treasury Mnuchin stated that the proposed Ministry to curb investment measures that have become part of the trade confrontation with China, will be applied not only to Beijing, but also "to all countries that are trying to steal our technology."

Negligible impact on the course of trading was provided by the US. A report from the Federal Reserve Bank of Dallas showed that in June the business activity of Texas producers improved significantly, contrary to the forecasted decline. According to the report, the production index of the Federal Reserve Bank of Dallas in June rose to 36.5 points from 26.8 points in May. Analysts had expected the decline to 18.2 points.

Meanwhile, sales of new single-family homes in the US rose more than expected in May, as sales in the south rose to its highest level in the last 11 years. The Commerce Department reported that sales of new homes jumped 6.7 percent to a seasonally adjusted level of 689,000 units, the highest level since November 2017. The pace of sales in April was revised to 646,000 units from 662,000 units.

Most of the components of DOW finished trading in the red (26 of 30). Outsider were shares of Intel Corporation (INTC, -3.39%). Leader of growth were shares of Walmart Inc. (WMT, + 1.93%).

Almost all S & P sectors recorded a decline. The largest drop was shown by the services sector (-2.2%). Growth was recorded only by the utilities sector (+ 1.0%).

At closing:

Dow 24,252.80 -328.09 -1.33%

S & P 500 2,717.07 -37.81 -1.37%

Nasdaq 100 7,532.01 -160.81 -2.09%

Sales of new single-family houses in May 2018 were at a seasonally adjusted annual rate of 689,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 6.7 percent (±14.1 percent) above the revised April rate of 646,000 and is 14.1 percent (±19.9 percent) above the May 2017 estimate of 604,000.

The median sales price of new houses sold in May 2018 was $313,000. The average sales price was $368,500.

U.S. stock-index futures fell on Monday, as fears of an escalation of the global trade wars continued to weigh on investors' sentiment.

Global Stocks:

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

Analyst coverage initiations before the market open

NIKE (NKE) initiated with a Neutral at Goldman; target $78

Intel (INTC) downgraded to Neutral from Buy at Nomura

Microsoft (MSFT) upgraded to Overweight from Neutral at Atlantic Equities

.This pushes USD/TRY down to its lowest in nearly two weeks of 4.5373, and it last trades down 1.8% at 4.5952.

• Optimistic About Economic Growth, But Sees Possibility of Downward Risks

• In This Part of the World, 'Summer' Means Until the End of September

• Expect Upward Movement of Core Inflation Over Medium Term

• 'I Do Not See Any Need for Continuing QE' Beyond December

The ifo Business Climate deteriorated this month. The index fell to 101.8 points in June from 102.3 (seasonally adjusted) points in May. Companies were less satisfied with their current business situation. Their business expectations, by contrast, remained slightly optimistic. The tailwind enjoyed by the German economy is calming down.

In manufacturing, the index fell due to poorer assessments of the current business situation. Manufacturers' business expectations, by contrast, remained slightly optimistic. More manufacturers plan to ramp up production in the months ahead.

In the services sector the business climate deteriorated. Service providers were slightly less satisfied with their current business situation, which nevertheless remains very good. They also scaled back their expectations for the months ahead somewhat.

"The Reserve Bank of New Zealand's Thursday's policy statement will come in the wake of data that's trended negative of late, so the central bank is likely to acknowledge that growth has been a bit weaker than expected, The RBNZ will probably also give a nod toward higher inflation given petrol pump prices have hit record levels amid the New Zealand dollar's recent weakness. But none of it will be enough to prevent the central bankers from saying interest rates will remain as is for some time to come".

His nearest opponent, Muharrem Ince, a lawmaker from the secular Republican People's Party, garnered 30.8%.

Based on the Tariffs and Trade Barriers long placed on the U.S. and it great companies and workers by the European Union, if these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here! @realDonaldTrump

The National Association of Manufacturers just announced that 95.1% of Manufacturers "have a positive outlook for their companies." This is the best number in the Association's history!

EUR/USD

Resistance levels (open interest**, contracts)

$1.1814 (3256)

$1.1775 (1094)

$1.1749 (169)

Price at time of writing this review: $1.1653

Support levels (open interest**, contracts):

$1.1574 (2679)

$1.1532 (4518)

$1.1488 (4558)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date July, 9 is 101280 contracts (according to data from June, 22) with the maximum number of contracts with strike price $1,1500 (4558);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3405 (728)

$1.3360 (210)

$1.3327 (163)

Price at time of writing this review: $1.3261

Support levels (open interest**, contracts):

$1.3202 (2499)

$1.3167 (2091)

$1.3128 (1666)

Comments:

- Overall open interest on the CALL options with the expiration date July, 9 is 23140 contracts, with the maximum number of contracts with strike price $1,3650 (2457);

- Overall open interest on the PUT options with the expiration date July, 9 is 29092 contracts, with the maximum number of contracts with strike price $1,3250 (2499);

- The ratio of PUT/CALL was 1.26 versus 1.26 from the previous trading day according to data from June, 22.

* - 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.