CFD Markets News and Forecasts — 29-08-2017

(raw materials / closing price /% change)

Oil 46.32 -0.26%

Gold 1,314.60 -0.33%

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

Nikkei -87.35 19362.55 -0.45%

TOPIX -2.36 1597.76 -0.15%

Hang Seng -98.28 27765.01 -0.35%

CSI 300 -8.17 3834.54 -0.21%

Euro Stoxx 50 -32.81 3388.22 -0.96%

FTSE 100 -64.03 7337.43 -0.87%

DAX -177.59 11945.88 -1.46%

CAC 40 -47.83 5031.92 -0.94%

DJIA +56.97 21865.37 +0.26%

S&P 500 +2.06 2446.30 +0.08%

NASDAQ +18.87 6301.89 +0.30%

S&P/TSX +30.67 15082.70 +0.20%

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

EUR/USD $1,1968 -0,07%

GBP/USD $1,2919 -0,07%

USD/CHF Chf0,95487 +0,31%

USD/JPY Y109,65 +0,79%

EUR/JPY Y131,24 +0,72%

GBP/JPY Y141,665 +0,71%

AUD/USD $0,7948 +0,15%

NZD/USD $0,7249 +0,09%

USD/CAD C$1,25158 -0,10%

01:30 Australia Building Permits, m/m July 10.9% -5.1%

01:30 Australia Construction Work Done Quarter II -0.7% 1.1%

06:00 Switzerland UBS Consumption Indicator July 1.38

07:00 Switzerland KOF Leading Indicator August 106.8 107

08:30 United Kingdom Mortgage Approvals July 64.68 65.5

08:30 United Kingdom Net Lending to Individuals, bln July 5.6 5.3

08:30 United Kingdom Consumer credit, mln July 1458 1500

09:00 Eurozone Consumer Confidence (Finally) August -1.7 -1.5

09:00 Eurozone Business climate indicator August 1.05 1.05

09:00 Eurozone Economic sentiment index August 111.2 111.3

09:00 Eurozone Industrial confidence August 4.5 4.7

12:00 Germany CPI, y/y (Preliminary) August 1.7% 1.8%

12:00 Germany CPI, m/m (Preliminary) August 0.4% 0.1%

12:15 U.S. ADP Employment Report August 178 183

12:30 Canada Current Account, bln Quarter II -14.1 -17.5

12:30 U.S. PCE price index, q/q (Revised) Quarter II 2.2% 0.3%

12:30 U.S. PCE price index ex food, energy, q/q (Revised) Quarter II 1.8% 0.9%

12:30 U.S. GDP, q/q (Revised) Quarter II 1.2% 2.7%

13:15 U.S. FOMC Member Jerome Powell Speaks

14:30 U.S. Crude Oil Inventories August -3.327

23:05 United Kingdom Gfk Consumer Confidence August -12 -13

23:50 Japan Industrial Production (MoM) (Preliminary) July 1.6% Revised From 1.6% -0.5%

23:50 Japan Industrial Production (YoY) (Preliminary) July 4.9%

Major US stock indexes recovered and closed in positive territory after the riots amid growing geopolitical tensions on the Korean peninsula after North Korea launched another missile.

According to Japanese media, North Korea launched a missile in the direction of northern Japan. The missile flew over the Japanese island of Hokkaido and in 1,180 kilometers from it fell into the Pacific Ocean, said the general secretary of the Cabinet of Ministers Yoshihide Suga. The Japanese government called the DPRK's actions "an unprecedented, serious threat," calling an emergency meeting of the UN Security Council.

Strong data on the US also provided some support for the market. As it became known, in August the index of consumer confidence from the Conference Board improved after growth in July. The index is now 122.9 (1985 = 100), compared with 120.0 in July. The index of the current situation increased from 145.4 to 151.2, while the index of expectations slightly increased from 103.0 last month to 104.0. "Consumer confidence increased in August after a moderate improvement in July," said Lynn Franco, director of economic performance at the Conference Board. A stronger consumer assessment of current conditions was the main factor in increasing confidence, while the index of the current situation continued to hold at a 16-year high (July 2001, 151.3). Short-term expectations of consumers were relatively unchanged, albeit optimistic, which indicates that they do not expect the acceleration of economic activity in the coming months. "

The cost of oil declined on Tuesday, as the market faced the closure of 13% of the refining capacity in the US after the hurricane that reached the center of the oil industry. In view of this, investors began to fear that interruptions in the work of the refinery would cause a decline in demand for oil.

Most components of the DOW index finished the trades in positive territory (16 out of 30). The leader of growth was shares United Technologies Corporation (UTX, + 2.46%). Outsider were shares of NIKE, Inc. (NKE, -1.94%).

Most sectors of the S & P index showed an increase. The industrial goods sector grew most (+ 0.6%). The largest decline was shown by the financial sector (-0.3%).

At closing:

DJIA + 0.26% 21.865.37 +56.97

Nasdaq + 0.30% 6.301.89 +18.87

S & P + 0.08% 2.446.30 +2.06

The Conference Board Consumer Confidence Index, which had increased in July, improved further in August. The Index now stands at 122.9 (1985=100), up from 120.0 in July. The Present Situation Index increased from 145.4 to 151.2, while the Expectations Index rose marginally from 103.0 last month to 104.0.

"Consumer confidence increased in August following a moderate improvement in July," said Lynn Franco, Director of Economic Indicators at The Conference Board. "Consumers' more buoyant assessment of present-day conditions was the primary driver of the boost in confidence, with the Present Situation Index continuing to hover at a 16-year high (July 2001, 151.3). Consumers' short-term expectations were relatively flat, though still optimistic, suggesting that they do not anticipate an acceleration in the pace of economic activity in the months ahead."

U.S. stock-index futures rose moderately, as investors preferred to flow out of risky assets after North Korea fired a ballistic missile over Japan, sparking concerns about fresh tensions between Washington and Pyongyang.

Global Stocks:

Nikkei 19,362.55 -87.35 -0.45%

Hang Seng 27,765.01 -98.28 -0.35%

Shanghai 3,365.63 +2.98 +0.09%

S&P/ASX 5,669.01 -40.88 -0.72%

FTSE 7,317.87 -83.59 -1.13%

CAC 5,015.88 -63.87 -1.26%

DAX 11,901.35 -222.12 -1.83%

Crude $46.72 (+0.32%)

Gold $1,329.50 (+1.08%)

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

Apple (AAPL) upgraded to Buy from Neutral at Cleveland Research; target $197

The Industrial Product Price Index (IPPI) declined 1.5% in July, mainly due to lower prices for motorized and recreational vehicles. The Raw Materials Price Index decreased 0.6%, mostly attributable to lower prices for metal ores, concentrates and scrap.

The IPPI posted its largest decline since December 2014, down 1.5% in July following a 1.1% decrease in June. The decline in the IPPI was widespread. Of the 21 major commodity groups, 18 were down, 1 was up and 2 were unchanged.

Prices for motorized and recreational vehicles (-3.3%), which posted their largest decline since May 2009 (-3.9%), were primarily responsible for the decline in the IPPI in July. Lower prices for passenger cars and light trucks (-3.5%), motor vehicle engines and motor vehicle parts (-2.7%) and aircraft (-4.4%) led the decline in this commodity group. Lower prices for motorized and recreational vehicles were closely linked to the appreciation of the Canadian dollar relative to the US dollar.

• Trump, after Pyongyang's missile launch over Japan, says "the world has received North Korea's latest message loud and clear"

• Trump and Abe 'committed to increasing pressure on North Korea, and doing their utmost to convince the international community to do the same'

• 'Agreed that North Korea poses a grave and growing direct threat to the United States, Japan, and the republic of Korea, as well as to countries around the world'

• Urges U.S. and its allies to avoid any military escalation in the region

• Would like to have better ties with Turkey, but we have to look at reality

EURUSD: 1.1800 (525 m) 1.1850 (295 m) 1.1875 (330 m) 1.1900 (810 m)

USDJPY: 109.50 (465 m) 110.00 (470 m)

AUDUSD: 0.7995 (525 m)

• Expects rouble to remain steady in coming months

EUR/USD

Resistance levels (open interest**, contracts)

$1.2073 (4743)

$1.2049 (2436)

$1.2031 (4758)

Price at time of writing this review: $1.1993

Support levels (open interest**, contracts):

$1.1920 (182)

$1.1894 (504)

$1.1862 (1013)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date September, 8 is 130359 contracts (according to data from August, 28) with the maximum number of contracts with strike price $1,1600 (5191);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3074 (1649)

$1.3040 (3300)

$1.3012 (853)

Price at time of writing this review: $1.2950

Support levels (open interest**, contracts):

$1.2908 (1249)

$1.2886 (2057)

$1.2857 (2172)

Comments:

- Overall open interest on the CALL options with the expiration date September, 8 is 36808 contracts, with the maximum number of contracts with strike price $1,3000 (3300);

- Overall open interest on the PUT options with the expiration date September, 8 is 32200 contracts, with the maximum number of contracts with strike price $1,2850 (2498);

- The ratio of PUT/CALL was 0.87 versus 0.87 from the previous trading day according to data from August, 28

* - 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.

Annual house price growth slows to 2.1%,

from 2.9% in July

• Modest 0.1% fall month-on-month

• Stamp duty revenues rise to new highs

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: "The annual pace of house price growth moderated to 2.1% in August, from 2.9% in July. The slowdown in house price growth to the 2-3% range in recent months from the 4-5% prevailing in 2016 is consistent with signs of cooling in the housing market and the wider economy.

The economy grew by c.0.3% per quarter in the first half of 2017, around half the pace recorded in 2016. The number of mortgages approved for house purchase moderated to a nine-month low of c.65,000 in June and surveyors have reported softening in the number of new buyer enquiries".

The mood among consumers in August shows a positive but non-uniform pattern. Both income expectation and propensity to buy have been able to improve their already outstanding levels, while economic expectation was less impressive after five increases in a row. GfK forecasts an increase in consumer climate for September of 0.1 points in comparison to the previous month to 10.9 points.

Consumers in Germany see the domestic economy continuing on a very good path. Evidence of this is provided by the new increases in income expectation and propensity to buy. It has been possible for both to again improve in their high levels. Economic expectation, on the other hand, has suffered a setback. Yet its current level still suggests that consumers nevertheless see the German economy continuing on a course for growth.

European stocks finished lower on Monday as the euro hit its highest level against the dollar in more than two years, while energy shares declined in the wake of refinery shutdowns prompted by then-Hurricane Harvey that pummeled Texas. Trading was closed on the FTSE 100 UKX, -0.08% as the U.K. observed the August Bank Holiday, meaning trading volumes were lighter than usual.

Investors sought out havens, boosting assets such as the Japanese yen, gold and U.S. Treasurys, after North Korea fired a ballistic missile over Japan for the first time since 2009. The launch represented an "unprecedented, grave and serious threat" to Japan, said chief government spokesman Yoshihide Suga.

U.S. stock-index futures were sliding lower late Monday in New York, with futures for the Dow down nearly 110 points at its nadir, after reports that North Korea fired a ballistic missile that flew over Japanese airspace, reigniting geopolitical tensions that had cooled between North Korea and U.S. allies in the Pacific Rim.