CFD Markets News and Forecasts — 29-05-2018

Major US stock indexes finished trading in the red, while the leaders of the fall was the financial sector, as the aggravated political crisis in Italy caused a rush to find safe assets.

President of Italy Mattharella decided on Sunday to veto the formation of the Eurosceptic government, refusing to approve the candidacy of economist Paolo Savona for the post of Minister of Economy, nominated by the political forces "Movement of 5 stars" and the party "League". At the same time, Mattharella ordered the formation of a provisional government to the former IMF officer Cottarelli. He noted that elections are expected early next year, but if Cottarelli fails to get a vote of confidence, the elections will be held after August. Meanwhile, in Spain on Friday, the parliament will vote on a vote of no confidence in the government of Prime Minister Rakhoi because of a scandal involving large-scale bribery by the business community of politicians from the ruling People's Party.

In addition, as it became known today, the housing price index from S & P / Case-Shiller, covering all nine districts of the US census, showed an annual increase of 6.5% in March, the same as in the previous month. For 10 megacities, the cumulative annual growth was 6.5%, compared to 6.4% in the previous month. For 20 cities, the index showed an increase of 6.8% compared to the previous year, unchanged from the previous month.

At the same time, the index of consumer confidence from the Conference Board grew in May after a slight decline in April. The index now stands at 128.0, compared with 125.6 in April. The index of the current situation increased from 157.5 to 161.7, and the index of expectations improved from 104.3 last month to 105.6 this month.

Almost all components of DOW recorded a decline (29 of 30). Outsider were the shares of JPMorgan Chase & Co. (JPM, -4.16%). The growth was demonstrated only by the shares of The Coca-Cola Company (KO, + 0.53%).

All sectors of S & P completed the auction in the red. The largest decline was in the financial sector (-2.4%).

At closing:

Dow 24,361.45 -391.64 -1.58%

S&P 500 2,689.86 -31.47 -1.16%

Nasdaq 100 7,396.59 -37.26 -0.50%

"Consumer confidence increased in May after a modest decline in April," said Lynn Franco, Director of Economic Indicators at The Conference Board. "Consumers' assessment of current conditions increased to a 17-year high (March 2001, 167.5), suggesting that the level of economic growth in Q2 is likely to have improved from Q1. Consumers' short-term expectations improved modestly, suggesting that the pace of growth over the coming months is not likely to gain any significant momentum. Overall, confidence levels remain at historically strong levels and should continue to support solid consumer spending in the near-term."

U.S. stock-index futures fell on Tuesday amid intensified political risks in Europe.

Global Stocks:

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 6.5% annual gain in March, the same as the previous month. The 10-City Composite annual increase came in at 6.5%, up from 6.4% in the previous month. The 20-City Composite posted a 6.8% year-over-year gain, no change from the previous month. Seattle, Las Vegas, and San Francisco continue to report the highest year-over-year gains among the 20 cities. In March, Seattle led the way with a 13.0% year-over-year price increase, followed by Las Vegas with a 12.4% increase and San Francisco with an 11.3% increase. Twelve of the 20 cities reported greater price increases in the year ending March 2018 versus the year ending February 2018.

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

Ford Motor (F) upgraded to Buy from Hold at Jefferies

We have put a great team together for our talks with North Korea. Meetings are currently taking place concerning Summit, and more. Kim Young Chol, the Vice Chairman of North Korea, heading now to New York. Solid response to my letter, thank you!

• The annual growth rate of the broad monetary aggregate M3 increased to 3.9% in April 2018, from 3.7% in March.

• The annual growth rate of the narrower aggregate M1, which includes currency in circulation and overnight deposits, decreased to 7.0% in April, from 7.5% in March.

• The annual growth rate of adjusted loans to households stood at 2.9% in April, unchanged from the previous month.

• The annual growth rate of adjusted loans to non-financial corporations stood at 3.3% in April, unchanged from the previous month.

Looking ahead to the past months, exports and imports are in crabs. While exports stagnated overall in April 2018, imports fell by a seasonally adjusted 3.4 percent. In both traffic directions, the development at Chemie-Pharma put pressure on the overall results. The trade balance showed a surplus of CHF 2.8 billion.

EUR/USD

Resistance levels (open interest**, contracts)

$1.1784 (2430)

$1.1754 (1907)

$1.1714 (352)

Price at time of writing this review: $1.1721

Support levels (open interest**, contracts):

$1.1626 (3362)

$1.1598 (2827)

$1.1565 (5068)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date June, 8 is 157583 contracts (according to data from May, 25) with the maximum number of contracts with strike price $1,1500 (6114);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3477 (1121)

$1.3441 (489)

$1.3410 (108)

Price at time of writing this review: $1.3318

Support levels (open interest**, contracts):

$1.3268 (1699)

$1.3242 (1278)

$1.3210 (1055)

Comments:

- Overall open interest on the CALL options with the expiration date June, 8 is 38818 contracts, with the maximum number of contracts with strike price $1,3600 (2437);

- Overall open interest on the PUT options with the expiration date June, 8 is 41828 contracts, with the maximum number of contracts with strike price $1,3400 (2375);

- The ratio of PUT/CALL was 1.08 versus 1.06 from the previous trading day according to data from May, 25.

* - 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.