Major US stock indices showed mixed dynamics: the Dow and S & P 500 grew moderately, while the high-tech Nasdaq closed the session in the red against the background of falling stocks of companies in the technology sector.

Investors were also preparing for the upcoming midterm elections to the US Congress, which will be held on November 6. Tomorrow, US voters will go to the polls, the results of which may have a significant impact on capital markets. It is expected that following the results of the elections, the Democrats will be able to regain control of the House of Representatives, while the Republicans will retain a small majority in the Senate. This result is seen largely as positive.

In addition, the focus was on US data. As it became known, the US service sector showed a strong expansion in business activity in October. Growth rates recovered from the weakness caused by the September weather, but were also supported by a sharp increase in new orders. The seasonally adjusted final index of business activity in the services sector from IHS Markit was 54.8 in October, compared with 53.5 in September and preliminary reading of 54.7.

However, the index of business activity in the US service sector, calculated by the Institute for Supply Management (ISM), fell in October to 60.3 points compared to 61.6 points in September. Analysts predicted that the index will fall to 59.3 points.

Most of the components of DOW finished trading in positive territory (26 out of 30). The growth leader was the shares of International Business Machines Corporation (IBM, + 3.82%). Apple Inc.’s shares turned out to be an outsider. (AAPL, -2.96%).

Most of the S & P sectors have shown a boost. The base materials sector grew the most (+ 1.4%). The largest decline was shown by the conglomerate sector (-0.7%)

At the time of closing:

Index

Dow 25,461.70 +190.87 +0.76%

S & P 500 2,738.31 +15.25 +0.56%

Nasdaq 100 7,328.85 -28.14 -0.38%

The rate of growth rebounded from September’s weatherrelated weakness, but was also buoyed by a sharp rise in new business. Capacity was often reported to have come under some strain, however, and difficulties finding suitable candidates were partly to blame for the rate of job creation easing to a ninemonth low. Meanwhile, price pressures intensified, with rates of both input cost and output charge inflation accelerating.

The seasonally adjusted final IHS Markit U.S. Services Business Activity Index registered 54.8 in October, up from September’s recent low of 53.5 and broadly in line with the earlier ‘flash’ reading of 54.7. Output growth regained momentum to run just below the average for 2018 so far. Service providers commonly linked the rise in business activity to increased new business and a pick up in demand after inclement weather in September.

Before the bell: S&P futures +0.02%, NASDAQ futures -0.19%

U.S. stock-index futures traded flat on Monday, as investors were preparing for the upcoming midterm elections in the U.S.

Global Stocks:

• “It's more like a neighborhood"

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

The Portuguese bank said in a statement that its 50.1%-owned subsidiary, Bank Millennium SA, will pay cash for a 99.79% stake in Euro Bank.

The transaction is expected to close in the second quarter of 2019, BCP said.

• The problem areas in Europe and the global economy remain largely the same, which does not make it any better. Germany's weakness is also weighing on the Euroland economy.

• Internationally, the Latin America region is attracting attention. From the investors' perspective, the election of the new Brazilian president nourishes hope for an end to the recessionary phase. In the USA, on the other hand, it is becoming more and more apparent that the tax boom sparked by the US President in 2018 is slowly running out of steam. 2019 will be harder.

UK service providers signalled another increase in business activity during October, but the rate of expansion eased to its weakest since the snowrelated soft patch seen in March. The loss of momentum largely reflected more cautious spending patterns among clients, as highlighted by the weakest upturn in new work since July 2016.

The seasonally adjusted IHS Markit/CIPS UK Services PMI Business Activity Index dropped to 52.2 in October from 53.9 in September, to signal the slowest rate of business activity expansion since March. The headline index has posted above the 50.0 no-change value in each of the past 27 months, but the latest reading was the secondlowest since July 2016. Survey respondents noted that heightened economic uncertainty and a soft patch for new work had held back business activity growth.  

The number of unemployed registered in the offices of the Public Employment Services in the last 12 months declined by 212,323 people, placing the rhythm of interannual decrease at 6.12%. In seasonally adjusted terms, unemployment has dropped by 27,483 people. The number of unemployed has risen in October by 52,194 people in relation to the previous month. This figure is lower than last year, which registered an increase of 56,884 people. The total number of unemployed is 3,254,703. Thus, registered unemployment continues at its lowest levels in the last 9 years.

Today, the United States re-imposes oil and financial sanctions on Iran, significantly increasing pressure on Tehran to contain its nuclear missile programs and counteract the growing military and political influence in the Middle East, Reuters reported. The move will restore US sanctions that were lifted as part of the 2015 nuclear deal agreed by the Obama administration.

• N.Z. Banks Must Reduce Risk Of Bad Behaviour

• RBNZ, FMA Release Report Into Bank Conduct And Culture

• BOJ must aim to achieve 2% inflation on average for prolonged period

• But doesn't necessary need to achieve 2% inflation all the time

• Early exit guideline by Fed ended up being unproductive

• It is an example that laying out exit strategy too early is not desirable

• Regional banks could face challenges in the next 5, 10, 15 years as profits dwindle

• But BOJ's current easing policies likely won't be intact for such a long period of time

The Australian Services Index (PSI) fell 1.4 points to 51.1 points (seasonally adjusted), indicating slower growth in October 2018 compared to September and the average of 2018. Results above 50 points indicate expansion in the Australian PSI, with higher numbers indicating stronger growth rates.

The Australian PSI indicated expansion in five of its nine sectors in October (trend). All business-oriented services sectors reported slower conditions than in September. The largest of these, business and property services, slowed but continued to report broadly positive conditions due to high levels of infrastructure construction activity. The consumer-oriented services sectors were mostly positive, with hospitality (cafes and restaurants) and retail trade reporting stronger conditions (trend).

The latest Caixin China Composite PMI data (which covers both manufacturing and services) signalled only a marginal increase in overall Chinese business activity at the start of the fourth quarter of 2018. Furthermore, the Composite Output Index fell from 52.1 in September to a 28-month low of 50.5.

The slowdown was broad-based by sector, with both services and manufacturing noting weaker performances compared to the previous month. Notably, manufacturing production stagnated, following increases in each of the preceding 27 months. Service sector activity meanwhile rose only marginally, with the seasonally adjusted Caixin China General Services Business Activity Index falling from 53.1 in September to a 13-month low of 50.8

EUR/USD

Resistance levels (open interest**, contracts)

$1.1562 (4149)

$1.1522 (2846)

$1.1464 (2207)

Price at time of writing this review: $1.1390

Support levels (open interest**, contracts):

$1.1325 (3867)

$1.1286 (3183)

$1.1242 (2521)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date November, 19 is 93878 contracts (according to data from November, 2) with the maximum number of contracts with strike price $1,1450 (4757);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3128 (1278)

$1.3093 (1363)

$1.3064 (1219)

Price at time of writing this review: $1.2985

Support levels (open interest**, contracts):

$1.2895 (1326)

$1.2863 (2467)

$1.2825 (1818)

Comments:

- Overall open interest on the CALL options with the expiration date November, 19 is 27856 contracts, with the maximum number of contracts with strike price $1,3500 (3173);

- Overall open interest on the PUT options with the expiration date November, 19 is 31248 contracts, with the maximum number of contracts with strike price $1,3000 (3305);

- The ratio of PUT/CALL was 1.12 versus 1.28 from the previous trading day according to data from November, 2

* - 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.