CFD Markets News and Forecasts — 23-10-2017

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

Nikkei +239.01 21696.65 +1.11%

TOPIX +14.61 1745.25 +0.84%

Hang Seng -181.36 28305.88 -0.64%

CSI 300 +3.95 3930.80 +0.10%

Euro Stoxx 50 +3.78 3608.87 +0.10%

FTSE 100 +1.22 7524.45 +0.02%

DAX +11.86 13003.14 +0.09%

CAC 40 +14.43 5386.81 +0.27%

DJIA -54.67 23273.96 -0.23%

S&P 500 -10.23 2564.98 -0.40%

NASDAQ -42.22 6586.83 -0.64%

S&P/TSX -1.46 15855.76 -0.01%

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

EUR/USD $1,1748 -0,27%

GBP/USD $1,3196 +0,05%

USD/CHF Chf0,98483 +0,09%

USD/JPY Y113,47 -0,03%

EUR/JPY Y133,31 -0,29%

GBP/JPY Y149,741 +0,03%

AUD/USD $0,7808 -0,06%

NZD/USD $0,6975 +0,16%

USD/CAD C$1,26457 +0,16%

03:30 Japan Manufacturing PMI (Preliminary) October 52.9 53.1

10:00 France Services PMI (Preliminary) October 57.0 56.9

10:00 France Manufacturing PMI (Preliminary) October 56.1 55.9

10:30 Germany Manufacturing PMI (Preliminary) October 60.6 60.0

10:30 Germany Services PMI (Preliminary) October 55.6 55.6

11:00 Eurozone Services PMI (Preliminary) October 55.8 55.7

11:00 Eurozone Manufacturing PMI (Preliminary) October 58.1 58.2

16:00 Belgium Business Climate October -3.5 -3.0

16:45 U.S. Manufacturing PMI (Preliminary) October 53.1 53.6

16:45 U.S. Services PMI (Preliminary) October 55.3 55.6

17:00 U.S. Richmond Fed Manufacturing Index October 19 17

Major US stock indexes ended the session in negative territory amid the collapse of shares of General Electric and the decline in quotations of the conglomerate sector.

In addition, as it became known, the revival of production activity led to a sharp improvement in the index of economic activity from the Federal Reserve Bank of Chicago last month, but weaker indicators that remained negative for many months restrain the average value of the index, and it will take several months to improve significant growth. The index of economic activity from the Federal Reserve Bank of Chicago in September recovered to a level of +0.17, with a downward revision of -0.37 in August, which was another turnaround of a particularly volatile measure in the last few months.

Oil futures traded neutrally amid fears of potential supply disruptions due to tensions in the oil-rich Kurdish region of Iraq, as well as a drop in drilling activity in the United States. Baker Hughes reported on Friday that from October 14 to October 20, the number of active drilling rigs for oil production in the United States was reduced by 7 pieces, and amounted to 736 units. The last value is the lowest level since June.

The components of the DOW index finished the auction mixed (15 in positive territory, 15 in negative territory). Wal-Mart Stores, Inc. became the leader of growth. (WMT, + 1.43%). Outsider were shares of General Electric Company (GE, -6.46%).

Almost all sectors of the S & P index recorded a fall. The largest decrease was shown by the sector of conglomerates (-1.1%). Only the utilities sector grew (+ 0.1%).

At closing:

DJIA -0.23% 23.273.96 -54.67

Nasdaq -0.64% 6,586.83 -42.22

S & P -0.40% 2.564.98 -10.23

As we can seen on the daily chart, GBP/CHF reached new highs and since that it has been correcting his last bullish movement.

In this case, the use of fibonacci levels is useful to see if the price is showing signs of recovering its previous bullish tendency, or if in the case of rejecting the 61.8% fibonacci, a reversal of bearish.

Therefore, in this asset we have two possible bias.

Our suggestion is to wait for the closing of today's candle (Monday) and then draw conclusions for either long or short entries.

EURUSD: 1.1720 (EUR 345m) 1.1730 (895m) 1.1785 (605m) 1.1800 (505m)

1.1870 (465m) 1.1900-05 (390m) 1.1930-35 (415m) 1.1945 (645m) 1.1965 (475mn)

USDJPY: 112.85 (640m) 113.00 (445m) 113.20-25 (585m) 113.50 (400m)114.60 (415m)

GBPUSD: Ntg of note

USDCHF: 0.9695-0.9700 (USD 1.1bln)

AUDUSD: 0.7775 (AUD 395m) 0.7850 (380m)

USDCAD: 1.2520-25 (USD 490m) 1.2900 (500m)

U.S. stock-index futures rose on the back of prospect of fiscal reform in the U.S. and good Q3 corporate earnings.

Global Stocks:

Nikkei 21,696.65 +239.01 +1.11%

Hang Seng 28,305.88 -181.36 -0.64%

Shanghai 3,382.27 +3.62 +0.11%

S&P/ASX 5,893.96 -13.03 -0.22%

FTSE 7,528.06 +4.83 +0.06%

CAC 5,394.11 +21.73 +0.40%

DAX 13,011.81 +20.53 +0.16%

Crude $51.99 (+0.29%)

Gold $1,274.60 (-0.46%)

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

Honeywell (HON) target raised to $156 at RBC Capital Mkts

UnitedHealth (UNH) target raised to $259 from $235 at Mizuho

General Electric (GE) downgraded to Neutral from Buy at UBS

General Electric (GE) downgraded to Underweight from Equal-Weight at Morgan Stanley

General Electric (GE) upgraded to Buy from Neutral at BofA/Merrill

Wholesale sales rose 0.5% to $62.8 billion in August, led by the personal and household goods and motor vehicle and parts subsectors.

Sales were up in four of the seven subsectors, together representing 47% of total wholesale sales.

In volume terms, wholesale sales rose 0.4%.

Sales in the personal and household goods subsector rose for the ninth consecutive month-posting the largest gain in dollar terms in August, rising 3.3% to a record $9.0 billion. Sales were up in four of the six industries, with the textile, clothing and footwear industry contributing the most to the gain.

Sales in the motor vehicle and parts subsector increased for the third time in four months, up 2.0% to $11.8 billion. The growth in the subsector was attributable to higher sales in the motor vehicle industry, which recorded its second consecutive monthly gain. There were higher imports of passenger cars and light trucks in August, and motor vehicle manufacturing sales increased.

October 24

Before the Open:

3M (MMM). Consensus EPS $2.21, Consensus Revenues $7927.28 mln.

Caterpillar (CAT). Consensus EPS $1.27, Consensus Revenues $10691.44 mln.

General Motors (GM). Consensus EPS $1.11, Consensus Revenues $29926.68 mln.

McDonald's (MCD). Consensus EPS $1.77, Consensus Revenues $5747.94 mln.

United Tech (UTX). Consensus EPS $1.69, Consensus Revenues $14993.81 mln.

Yandex N.V. (YNDX). Consensus EPS RUB9.21, Consensus Revenues RUB23460.38 mln.

After the Close:

AT&T (T). Consensus EPS $0.75, Consensus Revenues $40335.46 mln.

October 25

Before the Open:

Boeing (BA). Consensus EPS $2.65, Consensus Revenues $24068.71 mln.

Coca-Cola (KO). Consensus EPS $0.49, Consensus Revenues $8730.64 mln.

Freeport-McMoRan (FCX). Consensus EPS $0.29, Consensus Revenues $4045.22 mln.

Int'l Paper(IP). Consensus EPS $1.05, Consensus Revenues $5909.27 mln.

Visa (V). Consensus EPS $0.85, Consensus Revenues $4629.30 mln.

After the Close:

Barrick Gold (ABX). Consensus EPS $0.16, Consensus Revenues $2035.87 mln.

October 26

Before the Open:

Altria (MO). Consensus EPS $0.88, Consensus Revenues $5217.26 mln.

Ford Motor (F). Consensus EPS $0.33, Consensus Revenues $32804.60 mln.

Twitter (TWTR). Consensus EPS $0.06, Consensus Revenues $586.22 mln.

After the Close:

Alphabet (GOOG). Consensus EPS $8.33, Consensus Revenues $27110.74 mln.

Amazon (AMZN). Consensus EPS -$0.03, Consensus Revenues $42184.18 mln.

Intel (INTC). Consensus EPS $0.80, Consensus Revenues $15724.88 mln.

Microsoft (MSFT). Consensus EPS $0.72, Consensus Revenues $23526.08 mln.

October 27

Before the Open:

Chevron (CVX). Consensus EPS $0.97, Consensus Revenues $34629.07 mln.

Exxon Mobil (XOM). Consensus EPS $0.86, Consensus Revenues $65688.19 mln.

Merck (MRK). Consensus EPS $1.03, Consensus Revenues $10520.56 mln.

• Says should continue to demonstrate to people of Iran that they will be better off under Iran nuclear deal

EUR/USD: 1.1900 (390 m), 1.1870 (460 m), 1.1800 (505 m), 1.1785 (605 m), 1.1730 (895 m), 1.1720 (340 m)

USD/JPY: 114.60 (415 m), 113.50 (353 m), 113.20/25 (585 m), 113.00 (445 m), 112.85 (640 m)

AUD/USD: 0.7850 (380 m), 0.7775 (395 m)

• 2016 general government deficit at 2.5 pct of GDP vs. 2.4 pct estimated in april

• Public debt at 54.1 pct of GDP in 2016 vs. 54.4 pct of GDP estimated in april

• No-one but the catalan people has the right to change catalan institutions

• Australian banks' funding and liquidity levels will stay stable

• Home loan repricing will prop-up net interest margins and profitability

• Expects that australian banks will strengthen capital to meet higher minimum capital requirements

The U.S. stock market feels as though it is made out of Teflon, with virtually nothing able to disrupt its climb to record levels. The broad S&P 500 index SPX, +0.51% which on Friday closed at a record for the 49th time this year at 2,575.21, has sailed through 350 trading days without a 3% pullback, rising weeks and months on end to a 15% gain since the start of the year. According to Bespoke Investment Group, "2017 is tied for the fifth most closing highs on record, dating back to 1929.

Asian stock markets, with the exception of South Korea and Hong Kong, are higher on Monday amid optimism that U.S. President Donald Trump's tax reforms are moving closer to execution, while the Japanese market surged after Japanese Prime Minister Shinzo Abe's landslide victory in Sunday's elections.

EUR/USD

Resistance levels (open interest**, contracts)

$1.1909 (3331)

$1.1861 (1371)

$1.1818 (277)

Price at time of writing this review: $1.1768

Support levels (open interest**, contracts):

$1.1733 (2968)

$1.1704 (2928)

$1.1670 (4898)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date November, 3 is 101573 contracts (according to data from October, 20) with the maximum number of contracts with strike price $1,2000 (6870);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3357 (3500)

$1.3301 (3956)

$1.3263 (2367)

Price at time of writing this review: $1.3199

Support levels (open interest**, contracts):

$1.3112 (1600)

$1.3083 (2274)

$1.3050 (2213)

Comments:

- Overall open interest on the CALL options with the expiration date November, 3 is 40098 contracts, with the maximum number of contracts with strike price $1,3200 (3956);

- Overall open interest on the PUT options with the expiration date November, 3 is 35442 contracts, with the maximum number of contracts with strike price $1,3000 (3175);

- The ratio of PUT/CALL was 0.88 versus 0.86 from the previous trading day according to data from October, 20

* - 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.