The main US stock indexes ended the session mostly in positive territory, as a significant rise in the price of Apple shares gave an impetus to the technology sector, and helped to compensate for the negative effect of the escalating trade tension between the US and China.

A certain influence on the dynamics of trading was also provided by the US data. As it became known, new orders for goods produced in the US grew during the second month in a row in June, but the plans for business expenses for equipment were not as strong as originally thought, which suggests a probable further slowdown in the third quarter. Orders for factory goods increased by 0.7%, which was supported by a high demand for transport equipment, electrical equipment, household appliances and components, as well as computers and electronic products. In May, production orders increased by 0.4%.

However, the index of business activity in New York improved significantly last month, and exceeded the average forecasts of experts. This is evidenced by a report published by the Institute of Supply Management (ISM) in New York. According to the data provided, the index, which assesses economic conditions in the manufacturing and services sectors for companies registered in New York, increased in July to 75.0 points from 55.0 points in June. It was predicted that the index will grow only to 59.4 points. The index, reflecting economic conditions in 6 months, fell to 77.8 points from 78.1 points in June.

Most of the components of DOW finished trading in the red (17 out of 30). Outsider shares were DowDuPont Inc. (DWDP, -2.28%). The leader of growth was the shares of Apple Inc. (AAPL, + 3.03%).

Most sectors of the S & P recorded a rise. The consumer goods sector grew most (+ 1.1%). The largest decrease was in the base resources sector (-0.7%).

At closing:

Index

Dow 25,326.16 -7.66 -0.03%

S&P 500 2,827.22 +13.86 +0.49%

Nasdaq 100 7,802.68 +95.40 +1.24%

New orders for manufactured durable goods in June increased $2.5 billion or 1.0 percent to $251.9 billion, the U.S. Census Bureau announced today. This increase, up following two consecutive monthly decreases, followed a 0.3 percent May decrease. Excluding transportation, new orders increased 0.4 percent. Excluding defense, new orders increased 1.5 percent. Transportation equipment, also up following two consecutive monthly decreases, led the increase, $1.9 billion or 2.2 percent to $87.7 billion.

Shipments of manufactured durable goods in June, up ten of the last eleven months, increased $4.1 billion or 1.7 percent to $251.6 billion. This followed a 0.2 percent May increase. Transportation equipment, up following two consecutive monthly decreases, led the increase, $3.1 billion or 3.8 percent to $85.3 billion

U.S. stock-index futures fell on Thursday, amid escalating trade tensions between the U.S. and China. The U.S. president Trump Trump's administration confirmed intention to raise tariffs on $200 billion in Chinese imports to 25 percent from initially proposed 10 percent. According to the U.S. Trade Representative Robert Lighthizer, Trump decided to increase the duty as China refused to meet the U.S. demands and imposed retaliatory tariffs on the U.S. goods.

Global Stocks:

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

• Says above-target inflation reflects past sterling depreciation and higher energy prices

Nike (NKE) initiated with Overweight at Morgan Stanley

Tesla (TSLA) upgraded to Outperform from Perform at Oppenheimer

Freeport-McMoRan (FCX) upgraded to Neutral from Underperform at BofA/Merrill

In the week ending July 28, the advance figure for seasonally adjusted initial claims was 218,000, an increase of 1,000 from the previous week's unrevised level of 217,000. The 4-week moving average was 214,500, a decrease of 3,500 from the previous week's unrevised average of 218,000.

DowDuPont (DWDP) reported Q2 FY 2018 earnings of $1.37 per share, beating analysts' consensus estimate of $1.29.

The company's quarterly revenues amounted to $24.245 bln, beating analysts' consensus estimate of $23.709 bln.

The company also issued upside guidance for Q3, projecting Q3 revenues of more than $20.1 bln versus analysts' consensus estimate of $19.49 bln.

DWDP fell to $67.50 (-0.68%) in pre-market trading.

Tesla (TSLA) reported Q2 FY 2018 losses of $3.06 per share (versus -$1.33 in Q2 FY 2017), worse than analysts' consensus estimate of -$2.82.

The company's quarterly revenues amounted to $4.002 bln (+43.5% y/y), beating analysts' consensus estimate of $3.935 bln.

The company also reaffirmed it still expects to achieve GAAP profitability and positive free cash flow in Q3 and Q4.

TSLA rose to $324.19 (+7.76%) in pre-market trading.

• BOE Sees Inflation Returning To 2% Target In 2020

• "Very Limited" Spare Capacity, And "Excess Demand" In 2019

• Outlook Could Be "Siginificantly" Affected By Brexit Expectations

• "Tentative" Signs That Protectionist Policies Are Weakening Global Growth

• MPC Voted 9-0 to Raise Bank Rate to 0.75%

• Rate Rise Is Second In A Decade, Follows November Move

• Slowdown In Economic Growth During 1Q Was Temporary

• BOE Raises UK Economic Growth Forecasts For 2018, 2019

In June 2018, compared with May 2018, industrial producer prices rose by 0.4% in both the euro area (EA19) and the EU28, according to estimates from Eurostat, the statistical office of the European Union. In May 2018, prices increased by 0.8% in the euro area and by 1.1% in EU28. In June 2018, compared with June 2017, industrial producer prices rose by 3.6% in the euro area and by 4.4% in the EU28.

In the EU28, the 0.4% increase is due to rises of 1.2% in the energy sector, of 0.4% for intermediate goods and of 0.1% for capital goods, durable and non-durable consumer goods. Prices in total industry excluding energy rose by 0.2%. The highest increases in industrial producer prices were observed in Denmark (+2.6%), Estonia (+2.1%), Hungary (+1.6%) and Latvia (+1.5%), while decreases were observed in Luxembourg (-0.9%), Greece (-0.6%) and Croatia (-0.1%).

At 55.8 in July, up sharply from 53.1 in the previous month, the seasonally adjusted IHS Markit/CIPS UK Construction Purchasing Managers' Index signalled the fastest rise in overall construction output since May 2017. Survey respondents commented on improving demand conditions, higher volumes of new project starts and, in some cases, a degree of catch-up from the bad weather earlier in 2018.

Turnover in the retail sector rose by 1.1% in nominal terms in June 2018 compared with the previous year. Seasonally adjusted, nominal turnover rose by 0.6% compared with the previous month. These are provisional findings from the Federal Statistical Office (FSO).

Real turnover in the retail sector also adjusted for sales days and holidays rose by 0.3% in June 2018 compared with the previous year. Real growth takes inflation into consideration. Compared with the previous month, real, seasonally adjusted retail trade turnover registered an increase of 0.5%.

The number of registered unemployed in the offices of the Public Employment Services has decreased in July by 27,141 people in relation to the previous month. In seasonally adjusted terms, unemployment has fallen by 12,183 people. With regard to July 2017, unemployment has been reduced by 200,903 people, which puts its year-on-year reduction level at 6.02%. Thus, the total number of unemployed registered is 3,135,021, the lowest since December 2008. This means that since highs recorded in February 2013 (5,040,222), unemployment has been reduced by 1,905,201 people.

In trend terms, the balance on goods and services was a surplus of $1,428m in June 2018, an increase of $186m on the surplus in May 2018.

In seasonally adjusted terms, the balance on goods and services was a surplus of $1,873m in June 2018, an increase of $1,148m on the surplus in May 2018.

The sum of seasonally adjusted balances for the three months to June 2018 was a surplus of $3,192m, a decrease of $165m on the surplus of $3,357m for the three months to March 2018. However, if seasonal factors used in compiling the quarterly balance of payments are applied, the preliminary June quarter 2018 surplus was $2,860m, a decrease of $490m on the March quarter 2018 surplus of $3,350m.

EUR/USD

Resistance levels (open interest**, contracts)

$1.1758 (4589)

$1.1726 (2897)

$1.1705 (792)

Price at time of writing this review: $1.1634

Support levels (open interest**, contracts):

$1.1598 (3897)

$1.1549 (2738)

$1.1500 (3675)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date August, 13 is 90800 contracts (according to data from August, 1) with the maximum number of contracts with strike price $1,1850 (5326);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3216 (1414)

$1.3187 (829)

$1.3156 (286)

Price at time of writing this review: $1.3086

Support levels (open interest**, contracts):

$1.3043 (2313)

$1.2997 (1577)

$1.2949 (2296)

Comments:

- Overall open interest on the CALL options with the expiration date August, 13 is 24872 contracts, with the maximum number of contracts with strike price $1,3600 (3205);

- Overall open interest on the PUT options with the expiration date August, 13 is 29730 contracts, with the maximum number of contracts with strike price $1,3100 (2486);

- The ratio of PUT/CALL was 1.20 versus 1.18 from the previous trading day according to data from August, 1.

* - 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.

• Job Gains Strong, Unemployment Low In Recent Months

• Household Spending, Business Investment Have Grown Strongly

• Fed says the labor market was strong in multiple instances in its most recent statement

Consumer sentiment in Switzerland has almost dropped back to its long-term average. While consumers still expect a positive economic development, they are less optimistic than in recent quarters. Consumers' expectations regarding their own budget also remain subdued, while they adjusted their assessment of inflation upwards. Correspondingly, the likelihood of consumers making major purchases remains low.

Having suffered a marked decline, the consumer sentiment index from July 2018 stands at -7 points and is now close to its long-term average (-9 points). Consumers had seemed far more optimistic in the previous four quarters.

• Fed Statement Changes Assessment of Economic Activity To 'Strong' From 'Solid'

• Monetary Policy Remains Accommodative

• Risks To Economic Outlook Appear Roughly Balanced

• Long-Term Inflation Expectations Remain Little Changed