CFD Markets News and Forecasts — 11-05-2018

The Expectations Index gained 1.1 points and the Current Conditions Index fell 1.6 points--both were statistically insignificant changes. What is likely to capture attention, however, are the small uptick in near term inflation expectations, the downward slippage in income expectations, and the expected stabilization of the national unemployment rate at decade lows. The data will thus provide some additional points for both sides in the debate about the timing and number of future interest rate hikes.

U.S. stock-index futures were flat on Friday, following the stocks' rally in the previous session, bolstered by eased concerns that the Federal Reserve might have to be more aggressive in raising interest rates.

Global Stocks:

• Need for some form of common stabilisation function to prevent countries from diverging too much during crises

• What is still missing, however, is a backstop for the single resolution fund

• People expect the euro to deliver the stability and prosperity it promised

On a year-over-year basis, employment grew by 278,000 (+1.5%). The increase was due to gains in full-time employment (+378,000 or +2.6%), while part-time work declined (-100,000 or -2.8%). In the 12 months to April, total hours worked were up 1.9%.

The number of employed core-aged women (25 to 54) increased from March to April. At the same time, employment decreased among youth aged 15 to 24.

Among the provinces, employment rose in Manitoba and Nova Scotia, while it declined in Saskatchewan.

More people worked in professional, scientific and technical services, as well as in accommodation and food services. In contrast, employment declined in wholesale and retail trade and in construction.

The number of public and private sector employees and the number of self-employed workers were little changed in April.

U.S. import prices increased 0.3 percent in April, the U.S. Bureau of Labor Statistics reported today, following a 0.2-percent decline in March. Prices for fuel and nonfuel imports advanced in April. Prices for U.S. exports rose 0.6 percent in April, after increasing 0.3 percent in March. Higher prices for nonagricultural exports more than offset declining agricultural export prices in April.

Prices for U.S. exports rose 0.6 percent in April and have not recorded a decline since June 2017. The monthly advance was driven by higher nonagricultural export prices which more than offset declining agricultural prices. The price index for U.S. exports increased 3.8 percent over the past year, the largest 12-month increase since a 4.8-percent rise for the year ended November 2011. The index has not recorded a decrease on a 12-month basis since a 0.2-percent decline between November 2015 and November 2016.

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

Verizon (VZ) upgraded to Overweight from Neutral at JP Morgan

• Says U.S. decision to pull out of Iran Nuclear deal is no reason to question transatlantic partnership

• Says for me the decision to keep rates on hold in may was straightforward

• Iran's foreign ministry condemns Israel's attacks on Syria, says Damascus has every right to defend itself

EUR/USD

Resistance levels (open interest**, contracts)

$1.2070 (3971)

$1.2022 (672)

$1.1991 (288)

Price at time of writing this review: $1.1904

Support levels (open interest**, contracts):

$1.1834 (3981)

$1.1802 (2813)

$1.1765 (2771)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date June, 8 is 149681 contracts (according to data from May, 10) with the maximum number of contracts with strike price $1,1500 (8840);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3718 (1332)

$1.3687 (1592)

$1.3637 (832)

Price at time of writing this review: $1.3510

Support levels (open interest**, contracts):

$1.3431 (1638)

$1.3404 (2370)

$1.3374 (1202)

Comments:

- Overall open interest on the CALL options with the expiration date June, 8 is 38035 contracts, with the maximum number of contracts with strike price $1,3700 (2536);

- Overall open interest on the PUT options with the expiration date June, 8 is 40080 contracts, with the maximum number of contracts with strike price $1,3500 (2370);

- The ratio of PUT/CALL was 1.05 versus 1.06 from the previous trading day according to data from May, 10.

* - 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.

• There are some steps remaining that Govt needs to take on structural reform, growth strategy

• Says will continue to talk openly with U.S. on Iran, want to avoid economic tensions

European stocks broke a four-day winning run on Thursday, with Italian shares dragging the benchmark index lower as euroskeptic parties moved closer to form a coalition government. Several European markets were closed for Ascension Day, including Switzerland, Austria, the Nordics and Greece.

The Asia-Pacific continued the week's global stock rebound, following fresh gains in the U.S. as worries ease about higher interest rates. A number of indexes are set to cap their best week in months, coming as oil prices jumped to fresh 3 ½-year highs in recent days.

U.S. stocks closed solidly higher on Thursday, with equities advancing in a broad rally that gave the Dow Jones Industrial Average its longest winning streak since February.