CFD Markets News and Forecasts — 27-03-2018

Major U.S. stock-indexes fluctuate on Tuesday as investors' optimism about trade talks between China and the U.S. was somewhat undermined by the reports the Trump administration is considering a crackdown on Chinese investments in the U.S. technological sector.

Most of Dow stocks in positive area (22 of 30). Top gainer - General Electric Co. (GE, +4.38%). Top loser - Walmart Inc. (WMT; -0.54%).

Most of S&P sectors in positive area. Top gainer - Consumer Goods (+0.3%). Top loser - Basic Materials (-0.3%).

At the moment:

• Says decision means that Russia will have reduced capability to do intelligence work in NATO countries

The Conference Board Consumer Confidence Index decreased in March, following an increase in February. The Index now stands at 127.7 (1985=100), down from 130.0 in February. The Present Situation Index decreased from 161.2 to 159.9, while the Expectations Index declined from 109.2 last month to 106.2 this month.

"Consumer confidence declined moderately in March after reaching an 18-year high in February," said Lynn Franco, Director of Economic Indicators at The Conference Board. "Consumers' assessment of current conditions declined slightly, with business conditions the primary reason for the moderation. Consumers' short-term expectations also declined, including their outlook for the stock market, but overall expectations remain quite favorable. Despite the modest retreat in confidence, index levels remain historically high and suggest further strong growth in the months ahead."

U.S. stock-index futures rose on Tuesday, adding to Monday's solid gains, on growing hopes that the U.S. and China, which had started trade talks, wolud be able to reach mutually beneficial agreements and avoid a trade war.

Global Stocks:

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 6.2% annual gain in January, down from 6.3% in the previous month. The 10-City Composite annual increase came in at 6.0%, no change from the previous month. The 20-City Composite posted a 6.4% year-over-year gain, up from 6.3% in the previous month. Seattle, Las Vegas, and San Francisco reported the highest year-over-year gains among the 20 cities. In January, Seattle led the way with a 12.9% year-over-year price increase, followed by Las Vegas with an 11.1% increase and San Francisco with a 10.2% increase. Twelve of the 20 cities reported greater price increases in the year ending January 2018 versus the year ending December 2017.

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

• FPC saw arguments for "measured increase" in ccyb, also arguments for no change

• FPC says considered increasing ccyb capital buffer for banks at march meeting

• The annual growth rate of the broad monetary aggregate M3 decreased to 4.2% in February 2018, from 4.5% in January (revised from 4.6%).

• The annual growth rate of the narrower aggregate M1, which includes currency in circulation and overnight deposits, decreased to 8.4% in February, from 8.8% in January.

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

• The annual growth rate of adjusted loans to non-financial corporations decreased to 3.1% in February, from 3.4% in January.

EUR/USD

Resistance levels (open interest**, contracts)

$1.2578 (4319)

$1.2561 (2817)

$1.2534 (846)

Price at time of writing this review: $1.2465

Support levels (open interest**, contracts):

$1.2384 (5121)

$1.2341 (3223)

$1.2294 (5537)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date April, 6 is 106001 contracts (according to data from March, 26) with the maximum number of contracts with strike price $1,2150 (6601);

GBP/USD

Resistance levels (open interest**, contracts)

$1.4362 (2698)

$1.4318 (2835)

$1.4294 (2153)

Price at time of writing this review: $1.4240

Support levels (open interest**, contracts):

$1.4158 (716)

$1.4122 (285)

$1.4082 (755)

Comments:

- Overall open interest on the CALL options with the expiration date April, 6 is 31041 contracts, with the maximum number of contracts with strike price $1,4200 (2835);

- Overall open interest on the PUT options with the expiration date April, 6 is 30826 contracts, with the maximum number of contracts with strike price $1,3800 (3564);

- The ratio of PUT/CALL was 0.99 versus 0.97 from the previous trading day according to data from March, 26

* - 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.

As reported by the Federal Statistical Office (Destatis), the index of import prices decreased by 0.6% in February 2018 compared with the corresponding month of the preceding year. This has been the first price decline compared to the previous year since October 2016. In January 2018 and in December 2017 the annual rates of change were +0.7% and +1.1%, respectively. From January 2018 to February 2018 the index fell by 0.6%.

The index of import prices, excluding crude oil and mineral oil products, decreased by 1.0% compared with the level of a year earlier.

The index of export prices increased by 0.5% in February 2018 compared with the corresponding month of the preceding year. In January 2018 and in December 2017 the annual rates of change were +0.7% and +1.0%, respectively. From January 2018 to February 2018 the export price index did not change.

• Says no other country than Russia has a combination of the capability, intent and motive to carry out the Salisbury attack

• More than 130 people in Salisbury could have been exposed to nerve agent

• Juncker asked Turkey's Erdogan "to have another look" at detention of journalists, Greek soldiers

• Says is against the "simple, superficial" idea of cutting Turkey's accession negotiations to EU

• Sees a bit more than 2.5 pct GDP growth in 2018, 2019

• Fiscal stimulus estimated to boost GDP by 0.5 pct over next couple years, could be more

• No evidence that flat yield curve a signal of weak U.S. economy; structural factors likely at play

• U.S. must get back to sustainable fiscal situation; rising debt raises uncertainty for economy

European stocks closed lower Monday, as analysts said a surging euro squashed an early rally that had been sparked by an easing in recent trade-related tensions.

U.S. stocks on Monday recorded their largest one-day percentage gains since the summer of 2015, with major indexes recouping nearly half of their losses from last week. While the rally coincided with the reports that the U.S. and China are conducting behind-the-scenes talks to avert a global trade war, some analysts noted that the bounce was technical, rather than driven by fundamentals or sentiment.

Asia-Pacific stocks added to their start-of-week rebound early Tuesday, following a 3% surge on Wall Street as worries about global trade fights eased.