CFD Markets News and Forecasts — 26-07-2017

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

Nikkei +94.96 20050.16 +0.48%

TOPIX +3.81 1620.88 +0.24%

Hang Seng +88.97 26941.02 +0.33%

CSI 300 -14.17 3705.39 -0.38%

Euro Stoxx 50 +17.65 3491.19 +0.51%

FTSE 100 +17.50 7452.32 +0.24%

DAX +40.80 12305.11 +0.33%

CAC 40 +29.09 5190.17 +0.56%

DJIA +97.58 21711.01 +0.45%

S&P 500 +0.70 2477.83 +0.03%

NASDAQ +10.57 6422.75 +0.16%

S&P/TSX -30.98 15171.39 -0.20%

(pare/closed(GMT +2)/change, %)

EUR/USD $1,1746 +0,84%

GBP/USD $1,3118 +0,69%

USD/CHF Chf0,95001 -0,23%

USD/JPY Y111,11 -0,67%

EUR/JPY Y130,51 +0,17%

GBP/JPY Y145,766 +0,02%

AUD/USD $0,8011 +0,94%

NZD/USD $0,7520 +1,36%

USD/CAD C$1,24344 -0,59%

01:30 Australia Export Price Index, q/q Quarter II 9.4% -6.3%

01:30 Australia Import Price Index, q/q Quarter II 1.2% 0.7%

06:00 Germany Gfk Consumer Confidence Survey August 10.6 10.6

08:00 Eurozone Private Loans, Y/Y June 2.6% 2.7%

08:00 Eurozone M3 money supply, adjusted y/y June 5% 5%

10:00 United Kingdom CBI retail sales volume balance July 12 10

12:30 U.S. Continuing Jobless Claims 1977 1950

12:30 U.S. Goods Trade Balance, $ bln. June -65.9 -65

12:30 U.S. Chicago Federal National Activity Index June -0.26 0.35

12:30 U.S. Durable Goods Orders June -1.1% 3%

12:30 U.S. Durable Goods Orders ex Transportation June 0.1% 0.4%

12:30 U.S. Durable goods orders ex defense June -0.6%

12:30 U.S. Initial Jobless Claims 233 241

23:05 United Kingdom Gfk Consumer Confidence July -10 -11

23:30 Japan Tokyo Consumer Price Index, y/y July 0% 0.1%

23:30 Japan Tokyo CPI ex Fresh Food, y/y July 0% 0.1%

23:30 Japan Household spending Y/Y June -0.1% 0.6%

23:30 Japan Unemployment Rate June 3.1% 3%

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

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

23:50 Japan Retail sales, y/y June 2.0% 2.3%

The main stock indexes of Wall Street finished the session above the zero mark, receiving a boost from confident corporate profits.

In addition, some influence on the dynamics of trading was provided by data on the US housing market and the results of a two-day meeting of the Federal Reserve.

The Commerce Department reported that in June, sales of new homes in the US rose for the second consecutive month, as purchases in the West rose to nearly a 10-year high, but a serious shortage of real estate remains an obstacle to a robust recovery in the housing market. Sales of new buildings rose by 0.8% to a seasonally adjusted annual level of 610,000 units. The pace of sales for May was revised to 605,000 units from 610,000 units.

As for the Fed meeting, as expected, the Central Bank left the range of interest rates on federal funds unchanged, between 1.00% and 1.25%. This decision was taken unanimously (9 members of the FOMC voted "for"). The FOMC Accompanying Statement reported that the process of reducing the balance will begin "pretty soon." In general, the Fed management did not make it clear that weak inflation data changed their plans for another rate increase this year. "The situation on the labor market continued to improve. The growth of jobs is "strong", the unemployment rate has declined, "the FOMC statement said. - Economic activity "is growing at a moderate pace." The costs of households and companies also continued to grow. Short-term risks for the economy, in general, are "balanced". "

Oil prices rose by more than 1.5%, reaching an almost 8-week high, as a significant drop in US oil inventories reinforced expectations that the long-oversaturated market is moving toward a balance of supply and demand. The US Energy Ministry reported that US oil inventories fell sharply last week, as refineries increased their workload. In addition, there was a reduction in gasoline stocks and distillate stocks.

Components of the DOW index finished trades in different directions (17 in negative territory, 13 in positive territory). The leader of growth was the shares of The Boeing Company (BA, + 9.56%). Outsider were the shares of Cisco Systems, Inc. (CSCO, -1.75%).

Most sectors of the S & P recorded a rise. The utilities sector grew most (+ 0.5%). The health sector showed the greatest decline (-0.3%).

At closing:

DJIA + 0.45% 21,710.12 +96.69

Nasdaq + 0.16% 6,422.75 +10.58

S & P + 0.03% 2.477.83 + 0.70

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 7.2 million barrels from the previous week. At 483.4 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 1.0 million barrels last week, but are in the upper half of the average range. Both finished gasoline inventories and blending components inventories decreased last week.

Distillate fuel inventories decreased by 1.9 million barrels last week but are near the upper limit of the average range for this time of year. Propane/propylene inventories increased by 0.2 million barrels last week but are in the lower half of the average range. Total commercial petroleum inventories decreased by 9.4 million barrels last week

Sales of new single-family houses in June 2017 were at a seasonally adjusted annual rate of 610,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 0.8 percent above the revised May rate of 605,000 and is 9.1 percent above the June 2016 estimate of 559,000.

The median sales price of new houses sold in June 2017 was $310,800. The average sales price was $379,500.

EURUSD: 1.1600 (EUR 620m) 1.1650 (520m) 1.1700 (520m)

USDJPY: 111.25 (USD 220m) 111.50 (535m) 112.00 (220m)

GBPUSD: 1.2985 (GBP 300m ) 1.3000 (300m)

EURGBP: 0.9000 (EUR 360m)

AUDUSD: 0.7850 (AUD 250m) 0.7900-10 (645m) 0.7935 (220m)

U.S. stock-index futures were higher as investors digested another batch of earnings and awaited the Fed's latest policy decision.

Global Stocks:

Nikkei 20,050.16 +94.96 +0.48%

Hang Seng 26,941.02 +88.97 +0.33%

Shanghai 3,247.58 +3.89 +0.12%

S&P/ASX 5,776.63 +50.03 +0.87%

FTSE 7,466.44 +31.62 +0.43%

CAC 5,188.24 +27.16 +0.53%

DAX 12,299.68 +35.37 +0.29%

Crude $48.38 (+1.02%)

Gold $1,247.10 (-0.40%)

• Calls new U.S. sanctions "sad" for U.S.-Russia relations, says move is extremely unfriendly

• New U.S. sanctions a blow to international law and trade

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

Boeing (BA) reported Q2 FY 2017 earnings of $2.55 per share (versus -$0.44 in Q2 FY 2016), beating analysts' consensus estimate of $2.31.

The company's quarterly revenues amounted to $22.739 bln (-8.1% y/y), missing analysts' consensus estimate of $22.972 bln.

The company also issued guidance for FY 2017, raising EPS to $9.80-10.00 from $9.20-9.40 (versus analysts' consensus estimate of $9.40) and reaffirming FY 2017 revenues of $90.5-92.5 bln (versus analysts' consensus estimate of $92 bln).

BA rose to $219.47 (+3.30%) in pre-market trading.

Coca-Cola (KO) reported Q2 FY 2017 earnings of $0.59 per share (versus $0.60 in Q2 FY 2016), beating analysts' consensus estimate of $0.57.

The company's quarterly revenues amounted to $9.702 bln (-15.9% y/y), generally in-line with analysts' consensus estimate of $9.618 bln.

KO rose to $45.50 (+0.57%) in pre-market trading.

Ford Motor (F) reported Q2 FY 2017 earnings of $0.51 per share (versus $0.52 in Q2 FY 2016), beating analysts' consensus estimate of $0.43.

The company's quarterly revenues amounted to $36.932 bln (-0.5% y/y), generally in-line with analysts' consensus estimate of $37.219 bln.

The company also issued upside guidance for FY 2017, projecting EPS of $1.65-1.85 versus analysts' consensus estimate of $1.51.

F fell to $11.25 (-0.18%) in pre-market trading.

AT&T (T) reported Q2 FY 2017 earnings of $0.79 per share (versus $0.72 in Q2 FY 2016), beating analysts' consensus estimate of $0.74.

The company's quarterly revenues amounted to $39.837 bln (-1.6% y/y), in-line with analysts' consensus estimate of $39.838 bln.

The company also said it continued to expect the Time Warner (TWX) deal to close by year-end and further transform the company.

T rose to $37.25 (+2.84%) in pre-market trading.

The largest contribution to the month-on-month growth came from business services and finance, which contributed 0.23 percentage points.

In the 3 months to May 2017, services output increased by 0.4% compared with the 3 months ending February 2017, with all four main components increasing.

Services output increased by 2.4% in May 2017 compared with May 2016, following growth of 2.1% in April 2017 compared with April 2016.

EURUSD: 1.1600 (EUR 620m) 1.1650 (520m) 1.1700 (520m)

USDJPY: 111.25 (USD 220m) 111.50 (535m) 112.00 (220m)

GBPUSD: 1.2985 (GBP 300m ) 1.3000 (300m)

EURGBP: 0.9000 (EUR 360m)

AUDUSD: 0.7850 (AUD 250m) 0.7900-10 (645m) 0.7935 (220m)

UK gross domestic product (GDP) was estimated to have increased by 0.3% in Quarter 2 (Apr to June) 2017.

The growth in Quarter 2 2017 was driven by services, which grew by 0.5% compared with 0.1% growth in Quarter 1 (Jan to Mar) 2017.

The largest contributors to growth in services were retail trade, which improved after a fall in the first quarter, and film production and distribution.

Construction and manufacturing were the largest downward pulls on quarterly GDP growth, following 2 consecutive quarters of growth.

GDP per head was estimated to have increased by 0.1% during Quarter 2 2017.

EUR/USD

Resistance levels (open interest**, contracts)

$1.1731 (1456)

$1.1713 (3752)

$1.1694 (5032)

Price at time of writing this review: $1.1622

Support levels (open interest**, contracts):

$1.1571 (2711)

$1.1532 (1225)

$1.1489 (1523)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date August, 4 is 78638 contracts (according to data from July, 25) with the maximum number of contracts with strike price $1,1500 (5032);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3123 (2289)

$1.3103 (2481)

$1.3079 (1711)

Price at time of writing this review: $1.3013

Support levels (open interest**, contracts):

$1.2957 (697)

$1.2922 (1175)

$1.2881 (2602)

Comments:

- Overall open interest on the CALL options with the expiration date August, 4 is 28735 contracts, with the maximum number of contracts with strike price $1,3100 (3045);

- Overall open interest on the PUT options with the expiration date August, 4 is 28063 contracts, with the maximum number of contracts with strike price $1,2800 (3054);

- The ratio of PUT/CALL was 0.98 versus 0.96 from the previous trading day according to data from July, 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.

June 2017 quarterly values are seasonally adjusted and compared with the March 2017 quarter.

Goods exports rose 9.9 percent, to $13.5 billion.

Milk powder, butter, and cheese dominated the rise in exports, up 22 percent ($679 million); quantity was up 20 percent.

Goods imports rose 2.9 percent, to $14.0 billion.

Capital goods led the rise in imports, up 9.7 percent ($259 million).

Intermediate goods rose 3.6 percent ($202 million).

Consumption goods rose 1.2 percent ($42 million).

Quarterly trade deficit was $479 million (3.5 percent of exports).

Thirteen consecutive quarterly trade deficits since March 2014.

The all groups CPI:

Rose 0.2% this quarter, compared with a rise of 0.5% in the march quarter 2017.

Rose 1.9% over the twelve months to the june quarter 2017, compared with a rise of 2.1% over the twelve months to the march quarter 2017.

Overview of CPI movements:

The most significant price rises this quarter are medical and hospital services (+4.1%), new dwelling purchase by owner-occupiers (+0.9%), tobacco (+1.0%) and beer (+1.0%).

The most significant offsetting price falls this quarter are domestic holiday travel and accommodation (-3.2%), automotive fuel (-2.5%) and fruit (-4.4%).

The UBS consumption indicator stood at 1.38 points in June, pointing to subdued growth in consumption at the end of the second quarter. The May figure was revised downwards slightly to 1.32.

UBS's consumption indicator has been hit by weak growth in Swiss employment in recent quarters. Indeed, across the last five quarters, data suggests employment has all but stagnated. Since 2000, the annual growth in employment has been 1.1 percent. We expect employment growth rates to pick up during the course of the year, which should support consumption. Somewhat offsetting weak employment data, new car registrations rose 2.1 percent year-on-year in June. Additionally, most recent available data reveals that hotel overnight stays by Swiss nationals increased by 2.4 percent year-on-year. The mood also improved in the retail sector, although it started from a low base.

European stocks closed higher Tuesday, with bank stocks gaining ground as investors assessed upbeat developments from Germany and Greece. The Stoxx Europe 600 SXXP, +0.41% tacked on 0.4% to finish at 380.77, rebounding after the benchmark on Monday closed lower by 0.2%. In Frankfurt, the DAX 30 DAX, +0.45% was higher by 0.5% at 12,264.31, holding to gains after the closely watched Ifo Institute described German companies as "euphoric". The widely watched Ifo index of business sentiment in Europe's largest economy surged to a record high of 116.0 in July.

Asian shares gave up earlier gains Wednesday, though Japanese and Australian stocks outperformed, helped by an improvement in appetite for risk, which pushed the U.S. dollar and commodity prices higher overnight. Commodities led the charge in European and U.S. trading on Tuesday, with copper prices jumping 4% and oil rising more than 3%. That's particularly good for Australian stocks, where a big market segment is mining and energy companies.

The S&P 500 and Nasdaq on Tuesday notched fresh all-time highs as Wall digested an array of better-than-expected corporate-results. The Dow Jones Industrial Average DJIA, +0.47% closed up 100 points, or 0.5%, but the blue-chip average's advance was limited by a plunge in shares of component 3M Co. MMM, -5.05% which marked its sharpest-ever net drop on a dollar-basis on record, off $10.61, or down 5.1%, according to WSJ Market Data Group, tracking data going back to 1972.