CFD Markets News and Forecasts — 14-09-2017

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

Nikkei -58.38 19807.44 -0.29%

TOPIX -5.20 1632.13 -0.32%

Hang Seng -116.88 27777.20 -0.42%

CSI 300 -12.65 3829.96 -0.33%

Euro Stoxx 50 +3.34 3526.48 +0.09%

FTSE 100 -84.31 7295.39 -1.14%

DAX -13.12 12540.45 -0.10%

CAC 40 +7.61 5225.20 +0.15%

DJIA +45.30 22203.48 +0.20%

S&P 500 -2.75 2495.62 -0.11%

NASDAQ -31.10 6429.09 -0.48%

S&P/TSX +45.91 15172.72 +0.30%

(pare/closed(GMT +3)/change, %)

EUR/USD $1,9133 +1,45%

GBP/USD $1,3395 +1,42%

USD/CHF Chf0,96308 -0,09%

USD/JPY Y110,22 -0,25%

EUR/JPY Y131,33 -0,02%

GBP/JPY Y147,649 +1,18%

AUD/USD $0,7998 +0,19%

NZD/USD $0,7224 -0,19%

USD/CAD C$1,21745 +0,03%

09:00 Eurozone Trade balance unadjusted July 26.6 21.4

11:00 United Kingdom BOE Quarterly Bulletin

12:30 U.S. Retail sales excluding auto August 0.5% 0.5%

12:30 U.S. Retail Sales YoY August 4.2%

12:30 U.S. Retail sales August 0.6% 0.1%

12:30 U.S. NY Fed Empire State manufacturing index September 25.2 19

13:15 U.S. Capacity Utilization August 76.7% 76.8%

13:15 U.S. Industrial Production (MoM) August 0.2% 0.1%

13:15 U.S. Industrial Production YoY August 2.2%

14:00 U.S. Reuters/Michigan Consumer Sentiment Index (Preliminary) September 96.8 95.1

14:00 U.S. Business inventories July 0.5% 0.2%

17:00 U.S. Baker Hughes Oil Rig Count September 756

Major US stock indexes ended the session in different directions, as the rise in price of shares in the utilities sector was almost completely offset by a fall in shares of service companies.

Meanwhile, the focus was on the US data. The number of Americans applying for unemployment benefits unexpectedly fell last week, but the data was affected by Hurricanes Harvey and Irma, which makes it difficult to get a clear picture of the labor market. Initial applications for unemployment benefits fell by 14,000 to 284,000, seasonally adjusted for the week ending September 9, the Ministry of Labor said on Thursday.

In addition, as it became known today, higher rents and gas prices in August hit the pockets of consumers, but the cost of medical care has grown at the lowest rate since 1965, which can keep inflation in the US if the trend continues. The consumer price index, or the cost of living, rose 0.4% last month, which was the biggest increase since January. Economists predicted an increase in the CPI by 0.3%.

Most components of the DOW index showed positive dynamics (18 in positive territory, 12 in negative territory). The leader of growth was shares United Technologies Corporation (UTX, + 2.53%). Outsider were the shares of The Coca-Cola Company (KO, -1.60%).

Most sectors of the S & P index recorded a decline. The largest drop was shown by the service sector (-0.6%). The utilities sector grew most (+ 0.7%).

At closing:

DJIA + 0.22% 22,207.07 +48.89

Nasdaq -0.48% 6,429.08 -31.11

S & P -0.11% 2,495.69 -2.68

• U.S. action against Kaspersky lab aims to undermine competitive position of russian firms worldwide, amounts to unfair competition

EURUSD: 1.1735 (650m) 1.1810-20 (1.03bln) 1.1900 (1.1bln) 1.2000 (1.1bln) 1.2020-25 (585m)

USDJPY: 109.10 (USD 550m) 109.65 (790m) 110.00 (310m) 110.45-50 (1.07bln) 111.00 (895m)

GBPUSD: Nothing of note

AUDUSD: 0.8000 (AUD 300m) 0.8010 (1.8bln)

NZDUSD: 0.7250 (NZD 240m) 0.7300 (205m)

U.S. stock-index futures were slightly lower on Thursday as an uptick in consumer prices inflation boosted the odds the Fed can hike interest rate again this year.

Global Stocks:

Nikkei 19,807.44 -58.38 -0.29%

Hang Seng 27,777.20 -116.88 -0.42%

Shanghai 3,371.43 -12.72 -0.38%

S&P/ASX 5,738.68 -5.58 -0.10%

FTSE 7,319.00 -60.70 -0.82%

CAC 5,227.85 +10.26 +0.20%

DAX 12,512.79 -40.78 -0.32%

Crude $49.78 (+0.97%)

Gold $1,321.70 (-0.47%)

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

In the week ending September 9, the advance figure for seasonally adjusted initial claims was 284,000, a decrease of 14,000 from the previous week's unrevised level of 298,000. The 4-week moving average was 263,250, an increase of 13,000 from the previous week's unrevised average of 250,250. This is the highest level for this average since August 13, 2016 when it was 263,250.

Hurricanes Harvey and Irma impacted this week's initial claims.

Market conditions in Vancouver contributed to ongoing strength in that census metropolitan area (CMA), and helped drive new home prices up 0.4% nationally in July.

New house prices in Vancouver continued their upward trend, rising 2.0% from June to July. Prices have grown 7.7% in the CMA since the start of the year due to strong demand for housing. First-time home buyers have been eligible for a loan of up to 5% (to a maximum of $37,500) of a home's purchase price under the B.C. Home Partnership program introduced in January.

Toronto reported no change in new home prices for the second consecutive month. With the exception of Hamilton (+1.5%) and London (+0.9%), prices remained muted in the rest of Southern Ontario as well.

Overall, prices were up in 12 metropolitan areas and were unchanged in the other 15.

Boeing (BA) target raised to $300 from $280 at Deutsche Bank

Freeport-McMoRan (FCX) target lowered to $12 from $13 at FBR & Co.

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in August on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index rose 1.9 percent.
Increases in the indexes for gasoline and shelter accounted for nearly all of the seasonally adjusted increase in the all items index. The energy index rose
2.8 percent in August as the gasoline index increased 6.3 percent. The shelter index rose 0.5 percent in August with the rent index up 0.4 percent. The food index rose slightly in August, with the index for food away from home increasing and the food at home index declining.
The index for all items less food and energy rose 0.2 percent in August. Along with the shelter index, the indexes for motor vehicle insurance, medical care,and recreation all increased in August. The indexes for airline fares and for used cars and trucks were among those that declined in August.

• BoE expects gdp growth of +0.3 pct qq in q3 2017, unchanged from aug forecast, stronger consumption possible

• Says considerable risks remain, including response of households, businesses and markets to brexit process

• Policymakers Ian Mccafferty and Michael Saunders voted to raise rates to 0.50 pct

• Most of MPC judge some withdrawal of stimulus likely "over the coming months" if growth continues and underlying price pressures rise

• All MPC members agree any bank rate increases would be at a gradual pace and to a limited extent

The Bank of England's Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 13 September 2017, the MPC voted by a majority of 7-2 to maintain Bank Rate at 0.25%. The Committee voted unanimously to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion. The Committee voted unanimously to maintain the stock of UK government bond purchases, financed by the issuance of central bank reserves, at £435 billion.

The Swiss National Bank (SNB) is maintaining its expansionary monetary policy, with the aim of stabilising price developments and supporting economic activity. Interest on sight deposits at the SNB is to remain at -0.75% and the target range for the three-month Libor is unchanged at between -1.25% and -0.25%. The SNB will remain active in the foreign exchange market as necessary, while taking the overall currency situation into consideration. Since the last monetary policy assessment, the Swiss franc has weakened against the euro and appreciated against the dollar. Overall, this development is helping to reduce, to some extent, the significant overvaluation of the currency. The Swiss franc nevertheless remains highly valued, and the situation on the foreign exchange market is still fragile. The negative interest rate and the SNB's willingness to intervene in the foreign exchange market as necessary therefore remain essential in order to reduce the attractiveness of Swiss franc investments and thus ease pressure on the currency.

In August 2017, the Consumer Prices Index (CPI) recovered by 0.5% over a month, after a decline of 0.3% in July. Seasonally adjusted, it increased by 0.2% after two months of stability. Year on year, consumer prices accelerated to +0.9% after +0.7% in July.

Over a month, the rebound in prices resulted from that, seasonal, of manufactured product prices, and also from an upturn in energy prices. Contrariwise, services prices slowed down sharply due to a seasonal downturn in airfares and a slowdown in those of accommodation services. Food prices were stable.

EUR/USD

Resistance levels (open interest**, contracts)

$1.2016 (3095)

$1.1979 (1451)

$1.1944 (421)

Price at time of writing this review: $1.1881

Support levels (open interest**, contracts):

$1.1817 (3818)

$1.1788 (2584)

$1.1754 (3624)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date October, 6 is 93529 contracts (according to data from September, 13) with the maximum number of contracts with strike price $1,1900 (3818);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3356 (2960)

$1.3310 (2201)

$1.3268 (1543)

Price at time of writing this review: $1.3211

Support levels (open interest**, contracts):

$1.3151 (623)

$1.3104 (1030)

$1.3042 (1280)

Comments:

- Overall open interest on the CALL options with the expiration date October, 6 is 26401 contracts, with the maximum number of contracts with strike price $1,3250 (2960);

- Overall open interest on the PUT options with the expiration date September, 8 is 27748 contracts, with the maximum number of contracts with strike price $1,2950 (2503);

- The ratio of PUT/CALL was 1.05 versus 1.07 from the previous trading day according to data from September, 13

* - 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 tax reform will be revenue neutral under administration's growth assumptions

Australia's trend estimate of employment increased by 27,100 persons in August 2017,

with:

• the number of unemployed persons decreasing by 2,200 persons;

• the unemployment rate remaining steady at 5.6 per cent;

• the participation rate increasing by 0.1 percentage points to 65.2 per cent; and

• the employment to population ratio increasing by 0.1 percentage points to

61.5 per cent.

Over the past year, trend employment increased by 307,300 persons (or 2.6 per cent).

Over the same 12 month period the trend employment to population ratio, which is a

measure of how employed the population (aged 15 years and over) is, increased by

0.6 percentage points to 61.5 per cent, the highest it has been since February 2013

Europe's benchmark stock index closed marginally lower on Wednesday, as London-listed shares sold off and Apple Inc. suppliers declined a day after the tech giant revealed its new iPhones. The Stoxx Europe 600 index SXXP, -0.02% fell 0.08 point to end at 381.34, narrowly breaking a five-session winning streak. On Tuesday, the benchmark rose 0.5%.

U.S. stock-market indexes eked out small gains with all three benchmarks closing at all-time highs on Wednesday. The main indexes spent most of the session flipping between small gains and losses as investors took a pause after several days of gains. The Dow Jones Industrial Average DJIA, +0.18% closed 39.32 points, or 0.2%, higher at 22,158.18. The S&P 500 SPX, +0.08% added 1.89 points, or less than 0.1%, to 2,498.37.

Equity markets across the Asia-Pacific region pared early gains Thursday morning after disappointing economic data out of China, as investors awaited a rate decision from the Bank of England. China's business activity slowed further last month, falling short of expectations, which will likely set off a fresh discussion on the deceleration of the country's economy after a strong first half.