CFD Markets News and Forecasts — 23-08-2017

(raw materials / closing price /% change)

Oil 48.37 -0.08%

Gold 1,296.30 +0.12%

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

Nikkei +50.80 19434.64 +0.26%

TOPIX +3.93 1600.05 +0.25%

Hang Seng +246.99 27401.67 +0.91%

CSI 300 +3.79 3756.09 +0.10%

Euro Stoxx 50 -16.96 3438.63 -0.49%

FTSE 100 +0.91 7382.65 +0.01%

DAX -55.04 12174.30 -0.45%

CAC 40 -16.47 5115.39 -0.32%

DJIA -87.80 21812.09 -0.40%

S&P 500 -8.47 2444.04 -0.35%

NASDAQ -19.07 6278.41 -0.30%

S&P/TSX +78.20 15063.16 +0.52%

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

EUR/USD $1,1808 +0,38%

GBP/USD $1,2799 -0,17%

USD/CHF Chf0,96481 -0,30%

USD/JPY Y108,93 -0,59%

EUR/JPY Y128,64 -0,21%

GBP/JPY Y139,429 -0,76%

AUD/USD $0,7905 -0,08%

NZD/USD $0,7221 -0,81%

USD/CAD C$1,25509 -0,08%

08:30 United Kingdom BBA Mortgage Approvals July 40.2

08:30 United Kingdom Business Investment, q/q (Preliminary) Quarter II 0.6% 0.4%

08:30 United Kingdom Business Investment, y/y (Preliminary) Quarter II 0.7% 0.5%

08:30 United Kingdom GDP, y/y (Revised) Quarter II 2% 1.7%

08:30 United Kingdom GDP, q/q (Revised) Quarter II 0.2% 0.3%

10:00 United Kingdom CBI retail sales volume balance August 22 15

12:30 U.S. Continuing Jobless Claims 1953 1950

12:30 U.S. Initial Jobless Claims 232 238

13:00 Belgium Business Climate August -1.5 -1.7

14:00 U.S. Existing Home Sales July 5.52 5.57

23:30 Japan Tokyo CPI ex Fresh Food, y/y August 0.2% 0.3%

23:30 Japan Tokyo Consumer Price Index, y/y August 0.1% 0.3%

23:30 Japan National Consumer Price Index, y/y July 0.4% 0.4%

23:30 Japan National CPI Ex-Fresh Food, y/y July 0.4% 0.5%

Major US stock indices fell slightly on Wednesday amid a statement by US President Donald Trump about a possible temporary halt to the work of the government if it does not agree on the construction of the border wall in Mexico, as well as his words about abandoning the trade agreement with Mexico and Canada.

Meanwhile, US private sector companies announced a sharp and accelerated increase in business activity in August. This was demonstrated by the preliminary composite PMI index from IHS Markit for the US, which increased seasonally from 54.6 to 56.0, indicating the fastest growth in total activity since May 2015. The growth of the composite index was caused by a sharp increase in business activity in the sphere Services in August (the preliminary activity index rose to 56.9 from 54.7 in July). This contrasts with the slowdown in the growth of the manufacturing sector (the preliminary production index fell to 52.2 in August from 54.1 in July).

Meanwhile, sales of new homes in the US unexpectedly fell in July, reaching the lowest level in 7 months, which may cause concern about slowing the recovery in the housing market. The Ministry of Trade reported that, taking into account seasonal fluctuations, sales of new buildings fell by 9.4%, reaching 571 thousand units (recalculated for annual rates). The last value is the lowest since December 2016. The percentage drop was the highest since August 2016.

Most components of the DOW index recorded a decline (22 out of 30). Outsider were shares of Johnson & Johnson (JNJ, -1.48%). The leader of growth was shares United Technologies Corporation (UTX, + 1.14%).

Most sectors of the S & P index showed an increase. The sector of basic materials grew most (+ 0.7%). The largest decline was in the services sector (-0.6%).

At closing:

DJIA -0.40% 21,811.62 -88.27

Nasdaq -0.30% 6,278.41 -19.07

S & P -0.35% 2,444.02 -8.49

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 3.3 million barrels from the previous week. At 463.2 million barrels, U.S. crude oil inventories are in the upper half of the average range for this time of year.

Total motor gasoline inventories decreased by 1.2 million barrels last week, but are near the upper limit of the average range. Finished gasoline inventories increased while blending components inventories decreased last week.

Distillate fuel inventories remained unchanged last week and are in the upper half of the average range for this time of year. Propane/propylene inventories increased by 2.9 million barrels last week but are in the lower half of the average range. Total commercial petroleum inventories remained unchanged last week.

Sales of new single-family houses in July 2017 were at a seasonally adjusted annual rate of 571,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 9.4 percent below the revised June rate of 630,000 and is 8.9 percent (±15.4 percent)* below the July 2016 estimate of 627,000.

The median sales price of new houses sold in July 2017 was $313,700. The average sales price was $371,200.

This was shown by the seasonally adjusted IHS Markit Flash U.S. Composite PMI Output Index rising from July's reading of 54.6 to 56.0, to indicate the fastest growth of overall activity since May 2015.

Driving the headline composite index higher was a sharp increase in service sector business activity in August ('flash' business activity index at 56.9, up from 54.7 in July). This contrasted with a slowdown in manufacturing production growth ('flash' output index at 52.2 in August, down from 54.1).

In line with the trend for overall activity, total new orders also expanded at a quicker pace in August. Moreover, new business volumes grew at the quickest pace for just over two years. At the same time, companies continued to add to their payroll numbers in August, with the rate of job creation unchanged from July's seven-month record.

EURUSD: 1.1600 (995 млн) 1.1665 (645 млн) 1.1685 (730 млн) 1.1700 (455 млн) 1.1790-00 (1.28 млрд)

USDJPY: 108.60-65 (USD 560 млн) 109.50 (920 млн) 110.00 (635 млн) 110.60 (560 млн)

AUDUSD: 0.7750 (AUD 835 млн) 0.7800 (260 млн)

U.S. stock-index futures rose on Wednesday following Tuesday's rally. Investors' sentiment was affected by the U.S. president Donald Trump's threats to shut down the government to build a Mexico border wall. and to terminate a trade agreement with Mexico and Canada.

Global Stocks:

Nikkei 19,434.64 +50.80 +0.26%

Hang Seng -

Shanghai 3,287.68 -2.55 -0.08%

S&P/ASX 5,737.16 -12.96 -0.23%

FTSE 7,373.17 -8.57 -0.12%

CAC 5,124.58 -7.28 -0.14%

DAX 12,189.32 -40.02 -0.33%

Crude $47.62 (-0.44%)

Gold $1,295.30 (+0.33%)

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

HP (HPQ) initiated with a Buy at Loop Capital; target $23

• Cites several existing methods for dispute resolution, including joint committee, arbitration models, reporting requirements

• Says repeal bill will give pre-brexit ECJ case law the same binding status in UK courts as decision of UK supreme court

• Will work with EU on design of interim period, including arrangements for judicial supervision, enforcement and dispute resolution

• Says impact of annual salary increase for gov't employees on 2018 budget is 13 billion lira

• Says sanctions should not be imposed on North Korea indefinitely

EURUSD: 1.1600 (995m) 1.1665 (645m) 1.1685 (730m) 1.1700 (455m) 1.1790-00 (1.28bln)

USDJPY: 108.60-65 (USD 560m) 109.50 (920m) 110.00 (635m) 110.60 (560m)

GBPUSD: Nothing of note

AUDUSD: 0.7750 (AUD 835m) 0.7800 (260m)

The eurozone economy maintained growth momentum during August, according to PMI survey data, with output across the currency area rising at a broadly similar pace to July.

The expansion was supported by a strong rise in manufacturing production, while services business activity increased at a weaker pace. The headline IHS Markit Eurozone PMI posted 55.8 in August, up fractionally from July's reading of 55.7, according to the preliminary 'flash' estimate (based on approximately 85% of final replies).

The index again signalled strong growth of the euro area private sector, with the rate of expansion remaining around the best seen over the past six years. The manufacturing sector performed strongly, with both output and new orders rising at sharper rates in August. The latter was boosted by the fastest rise in exports for six-and-a-half years. The service sector, on the other hand, saw growth of activity ease to a seven-month low. That said, the rate of expansion remained solid amid a further increase in new orders.

German private sector output growth strengthened slightly in August, according to flash PMI survey data from IHS Markit. The overall rate of expansion picked up from July's ten-month low, a trend reflected in both manufacturing output and services business activity. Similarly, new business inflows increased at a faster rate in August, having slowed the previous month.

Growth of output was broadly in line with the strong trend shown over the past 12 months. Meanwhile, employment continued to rise sharply in August and input cost inflation hit a fourmonth high.

The IHS Markit Flash Germany Composite Output Index registered 55.7 in August, up from 54.7 in July and indicating a sharp overall rate of expansion.

The index was broadly in line with its trend level over the past 12 months (55.6). Output has risen continuously since May 2013, the secondlongest sequence of growth since the series started in January 1998.

Flash France Composite Output Index at 55.6 in August (unchanged from July). Flash France Services Activity Index falls to 55.5 in August (56.0 in July), 7-month low. Output Index rises to 56.2 (54.0 in July), 76-month high. Flash Manufacturing PMI(4) increases to 55.8 (54.9 in July) 76-month high.

A softer increase in service sector activity was recorded for the third successive month in August, although, the rate of growth remained marked and above the long-run series average. In contrast, the rate of expansion in manufacturing production was the sharpest in almost six-and-a-half years

Commenting on the Flash PMI data, Alex Gill, Economist at IHS Markit said: "The latest data paint another positive picture of the French private sector economy, with further strong expansions in both new business and output. The data are particularly promising for the manufacturing sector, with output and new order

EUR/USD

Resistance levels (open interest**, contracts)

$1.1872 (4233)

$1.1846 (2035)

$1.1808 (1693)

Price at time of writing this review: $1.1750

Support levels (open interest**, contracts):

$1.1715 (1391)

$1.1696 (2545)

$1.1672 (3103)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date September, 8 is 127796 contracts (according to data from August, 22) with the maximum number of contracts with strike price $1,1600 (5073);

GBP/USD

Resistance levels (open interest**, contracts)

$1.2983 (889)

$1.2949 (1493)

$1.2898 (574)

Price at time of writing this review: $1.2821

Support levels (open interest**, contracts):

$1.2768 (2637)

$1.2741 (2009)

$1.2709 (1850)

Comments:

- Overall open interest on the CALL options with the expiration date September, 8 is 34010 contracts, with the maximum number of contracts with strike price $1,3000 (3282);

- Overall open interest on the PUT options with the expiration date September, 8 is 29827 contracts, with the maximum number of contracts with strike price $1,2850 (2637);

- The ratio of PUT/CALL was 0.88 versus 0.87 from the previous trading day according to data from August, 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.

• Australia's dependence on external financing exposes it to shift in foreign investors' assessment of attractiveness of australian assets

• Debt burden will remain moderate relative to other aaa-rated sovereigns, and its debt affordability is very strong

• Australia's high, rising household debt exposes it to potential downturn in housing market that could significantly weigh on gdp growth

Flash Japan Manufacturing PMI improves to three-month high of 52.8 in August (52.1 in July). Manufacturing Output Index at 53.1 (51.4 in July). Fastest growth for three months. Output, new orders and employment all rise.

Commenting on the Japanese Manufacturing PMI survey data, Paul Smith, Director at IHS Markit, which compiles the survey, said: "August's PMI survey provided another positive set of data on the health of Japan's manufacturing sector, with growth rates of output, new orders and employment all improving. "Expansion continues to be supported by a mix of strengthened demand from both domestic and external sources: public work projects and stronger sales to South East Asia were both reported by panellists as areas of growth in August

European stocks pushed higher Tuesday, with investor optimism returning ahead of the closely watched gathering of central bankers in Jackson Hole, Wyo., later this week. The Stoxx Europe 600 index SXXP, +0.83% jumped 0.8% to close at 375.80, halting a three-session losing skid. The pan-European benchmark fell 0.4% on Monday, in part on concerns about another flare-up in tensions between the U.S. and North Korea.

U.S. stocks closed higher Tuesday, with the Dow industrials and the Nasdaq turning in their best session in months, as a surge in appetite for technology shares and health-care stocks underlined a measure of bullishness returning to markets after a rough patch. Both the Dow and the S&P 500 logged their second straight daily gain, while the Nasdaq snapped a three-session skid.

Asia-Pacific stocks were widely higher early Wednesday, getting a lift from improved sentiment and a stronger U.S. dollar. But Chinese equities fell modestly on a 5% slide in metals futures and Australia's benchmark turned lower as Commonwealth Bank of Australia faced a potential shareholder lawsuit in the wake of a government money-laundering case.