CFD Markets News and Forecasts — 06-06-2018

Major US stock indices increased significantly on Wednesday, helped by the appreciation of Tesla shares (TSLA), as well as the growth of almost all sectors. In addition, market participants analyzed statistics on the United States and the next signals related to international trade.

The Commerce Department reported that the US trade deficit fell to a seven-month low in April, as exports rose to a record high, supported by an increase in supplies of industrial materials and soybeans. According to the report, the trade deficit decreased by 2.1% to $ 46.2 billion, which is the lowest level since September. Data for March were revised to show that the trade balance deficit fell to $ 47.2 billion, instead of the previously announced $ 49.0 billion. Economists predicted a trade deficit without changes in the amount of $ 49.0 billion in April.

In addition, as it became known, labor productivity in the United States grew more slowly than originally anticipated in the first three months of 2018, becoming a potential head-on wind for stronger economic growth. The productivity of non-agricultural workers, measured as the release of goods and services per hour of work, increased by 0.4% in the first quarter, according to seasonal fluctuations, the Ministry of Labor said. This was below the initial growth estimate of 0.7% and follows an unreviewed increase of 0.3% in the fourth quarter.

Most of the components of DOW have finished trading in positive territory (26 out of 30). The leader of growth was the shares of The Boeing Company (BA, + 3.07%). Outsider were shares of General Electric Company (GE, -0.91%).

Almost all sectors of S & P recorded a rise. The financial sector grew most (+ 1.2%). The decrease was shown only by the utilities sector (-1.7%).

At closing:

Dow 25,145.98 +346.00 +1.40%

S&P 500 2,772.28 +23.48 +0.85%

Nasdaq 100 7,689.24 +51.38 +0.67%

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 2.1 million barrels from the previous week. At 436.6 million barrels, U.S. crude oil inventories are in the lower half of the average range for this time of year.

Total motor gasoline inventories increased by 4.6 million barrels last week, and are in the upper half of the average range. Both Finished gasoline and blending components inventories increased last week.

Distillate fuel inventories increased by 2.2 million barrels last week and are in the lower half of the average range for this time of year. Propane/propylene inventories increased by 4.0 million barrels last week, and are in the lower half of the average range. Total commercial petroleum inventories increased by 15.8 million barrels last week.

U.S. stock-index futures were flat on Wednesday, amid signs of easing trade tensions and falling oil prices.

Global Stocks:

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

Twitter (TWTR) target raised to $50 from $40 at Argus

Int'l Paper (IP) upgraded to Outperform from Sector Perform at RBC Capital Mkts

Nonfarm business sector labor productivity increased 0.4 percent during the first quarter of 2018, the U.S. Bureau of Labor Statistics reported today, as output increased 2.7 percent and hours worked increased 2.3 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.)

From the first quarter of 2017 to the first quarter of 2018, productivity increased 1.3 percent, reflecting a 3.6-percent increase in output and a 2.3-percent increase in hours worked.

April exports were $211.2 billion, $0.6 billion more than March exports. April imports were $257.4 billion, $0.4 billion less than March imports.

The April decrease in the goods and services deficit reflected a decrease in the goods deficit of $1.0 billion to $68.3 billion and a decrease in the services surplus of less than $0.1 billion to $22.1 billion.

Year-to-date, the goods and services deficit increased $20.8 billion, or 11.5 percent, from the same period in 2017. Exports increased $62.0 billion or 8.1 percent. Imports increased $82.8 billion or 8.7 percent.

Canada's exports rose 1.6% to a record $48.6 billion in April, while imports were down 2.5% to $50.5 billion. As a result, Canada's merchandise trade deficit with the world narrowed from $3.9 billion in March to $1.9 billion in April.

In real (or volume) terms, exports rose 1.2% and imports fell 2.4%.

Exports increased 1.6% to a record $48.6 billion in April, the sixth increase over the past seven months. Higher exports of metal and non-metallic mineral products, consumer goods and energy products were partially offset by lower exports of aircraft and other transportation equipment and parts. Year over year, total exports rose 3.1%.

The consumer price index CPI) increased by 0.4% in May 2018 compared with the previous month, reaching 102.1 points (December 2015=100). Inflation was 1.0% compared with the same month of the previous year. These are the results of the Federal Statistical Office (FSO).

The 0.4% increase compared with the previous month can be explained by several factors including rising prices for petroleum products and fresh fruit. In contrast, prices for medicines have decreased.

Like-for-like sales in the eurozone retail sector rose in May, thereby reversing the downturn seen in April. The increase was indicative of sharper rises in Germany and France, and a slower decline in Italy. The headline IHS Markit Eurozone Retail PMI® - which tracks the month-on-month changes in retail sales in the bloc‟s biggest three economies combined - rose to 51.7 in May, from 48.6 in April, signalling the sharpest rise since February. Sales were also up on an annual basis, having decline in each of the previous two months.

EUR/USD

Resistance levels (open interest**, contracts)

$1.1903 (2431)

$1.1855 (1990)

$1.1811 (3509)

Price at time of writing this review: $1.1746

Support levels (open interest**, contracts):

$1.1674 (6090)

$1.1638 (2920)

$1.1594 (4751)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date June, 8 is 167069 contracts (according to data from June, 5) with the maximum number of contracts with strike price $1,1500 (6123);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3556 (1338)

$1.3512 (1357)

$1.3473 (1887)

Price at time of writing this review: $1.3419

Support levels (open interest**, contracts):

$1.3376 (1140)

$1.3357 (2223)

$1.3326 (2257)

Comments:

- Overall open interest on the CALL options with the expiration date June, 8 is 41069 contracts, with the maximum number of contracts with strike price $1,3600 (2256);

- Overall open interest on the PUT options with the expiration date June, 8 is 43067 contracts, with the maximum number of contracts with strike price $1,3350 (2257);

- The ratio of PUT/CALL was 1.05 versus 1.04 from the previous trading day according to data from June, 5.

* - 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.

The Australian economy grew 1.0 per cent in seasonally adjusted chain volume terms in the March quarter 2018 led by growth in exports of mining commodities, according to figures released by the Australian Bureau of Statistics (ABS) today.

Chief Economist for the ABS, Bruce Hockman, said: "Growth in exports accounted for half the growth in GDP, and reflected strength in exports of mining commodities."

Mining industry Gross Value Added grew 2.9 per cent during the quarter. Production of coal, iron ore and liquefied natural gas showed strong increases.

Private non-financial corporations profits increased by 6.0 per cent in the March quarter, the strongest increase in the past year. "The rise in profits was consistent with the strong increase in mining exports coupled with a lift in the terms of trade this quarter." Mr Hockman added.

Private investment contributed to GDP growth with continued strong investment in machinery and equipment, and was particularly strong in the non-mining sector. Growth in the construction of new dwellings fell slightly, but the recent high levels continued, consistent with the number of building approvals observed in recent months.