Информационно-аналитический отдел TeleTrade

Major US stock indexes rose significantly against the backdrop of a rise in the price of shares in the banking and industrial sectors, as investors expect a strong season of quarterly reports, turning a blind eye to trade problems.

An important data, which could have an impact on the mood of global sites, was not published. Investors continue to win back Friday's data on the labor market, which signaled that the Fed is likely to continue to gradually increase interest rates.

Prices for Brent crude rose by more than 1% on Monday, as rising global demand and US efforts to block oil supplies from Iran through sanctions outweighed fresh data on drilling activity, suggesting a further increase in shale oil production in the US.

Meanwhile, Friday is expected to publish quarterly results of a number of the largest financial institutions, namely JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC), which will kick off the corporate reporting season.

Most of the components of DOW finished trading in positive territory (25 out of 30). Caterpillar Inc. was the growth leader. (CAT, + 4.08%). Outsider were the shares of The Procter & Gamble Company (PG, -1.84%).

Almost all sectors of S & P recorded a rise. The sector of industrial goods grew most (+ 1.5%). The decrease was shown only by the utilities sector (-2.5%).

At closing:

Dow 24,776.59 +320.11 +1.31%

S & P 500 2,784.17 +24.35 +0.88%

Nasdaq 100 7,756.20 +67.81 +0.88%

Friends of Boris Johnson think he is quitting. Not definite. But he is ensconced in his official residence with his advisers, which sends a powerful signal. As one said, "very hard for him not to quit now that Davis has, given that everyone knows they both hate May's Brexit plan".

It is time to buy EUR/USD, Morgan Stanley says, as it looks for a rally targeting 1.21 and 1.2270. Recent improving eurozone economic data has helped the U.S.-EMU "economic surprise index divergence" to narrow, MS says. "We see our four-factor USD scorecard turning decisively USD bearish," it says. It also cites the People's Bank of China "leaning against CNY weakness," as well as a high number of market bets on dollar gains, raising the potential for those positions to be unwound. EUR/USD rises to a 3.5-week high of 1.1783. - via WSJ

Before the bell: S&P futures +0.13%, NASDAQ futures +0.23%

U.S. stock-index futures rose moderately on Monday, as concerns over escalating trade tensions took a back seat, while focus shifted to the upcoming earnings season.

Global Stocks:

• Threat of Increased Protectionism Has Become More Prominent

• Underlying Inflation Is Expected to Pick Up

• Recent Wage Deals in Several Countries Suggest Continuation of Favorable Dynamics

Wall Street. Stocks before the bell

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

Procter & Gamble (PG) downgraded to Hold from Buy at Jefferies

The United States is spending far more on NATO than any other Country. This is not fair, nor is it acceptable. While these countries have been increasing their contributions since I took office, they must do much more. Germany is at 1%, the U.S. is at 4%, and NATO benefits.......

• Fear of Deflation in Eurozone Is Over

• The EU Must Get Serious In Brexit Negotiations

• Economic expectations in the euro zone may stabilize slightly in July following the sharp slide in June. The overall index rose from 9.3 to 12.1 points.

• However, this seems more of a "technical" counter-movement. The index for Germany, for example, has dropped again, for the sixth time in a row, to just 16.2 points.

• The global environment is also showing more and more signs of an economic slowdown. For Japan, for example, we are recording the sixth consecutive decline in the overall index and economic expectations for Asia ex Japan are slumping by more than 10 points. US economic expectations are also falling to their lowest level since August 2012.

According to provisional results of the Deutsche Bundesbank, the current account of the balance of payments showed a surplus of 12.6 billion euros in May 2018, which takes into account the balances of trade in goods including supplementary trade items (+21.5 billion euros), services (-1.6 billion euros), primary income (-7.4 billion euros) and secondary income (+0.1 billion euros). In May 2017, the German current account showed a surplus of 15.2 billion euros.

According to SECO surveys, at the end of June 2018, 106,579 unemployed were registered at the regional employment agencies (RAV), 2,813 less than in the previous month. The unemployment rate remained at 2.4% in the month under review. Compared with the same month last year, unemployment fell by 27,024 people (-20.2%). As announced in the press release of 07.06.2018, in June the introduction of the new, semi-automated system for registering unemployed and non-job seekers in the Regional Employment Centers (RAV) was completed.

Germany exported goods to the value of 109.1 billion euros and imported goods to the value of 89.4 billion euros in May 2018. Based on provisional data, the Federal Statistical Office (Destatis) also reports that German exports declined by 1.3%, while imports increased by 0.8% in May 2018 year on year. After calendar and seasonal adjustment, exports increased by 1.8% and imports by 0.7% compared with April 2018.

The foreign trade balance showed a surplus of 19.7 billion euros in May 2018. In May 2017, the surplus amounted to 21.8 billion euros. In calendar and seasonally adjusted terms, the foreign trade balance recorded a surplus of 20.3 billion euros in May 2018.

EUR/USD

Resistance levels (open interest**, contracts)

$1.1886 (2234)

$1.1848 (2600)

$1.1820 (155)

Price at time of writing this review: $1.1761

Support levels (open interest**, contracts):

$1.1690 (1651)

$1.1656 (2278)

$1.1619 (3086)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date August, 13 is 76820 contracts (according to data from July, 6) with the maximum number of contracts with strike price $1,1600 (4251);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3411 (844)

$1.3371 (617)

$1.3345 (671)

Price at time of writing this review: $1.3297

Support levels (open interest**, contracts):

$1.3220 (742)

$1.3196 (1351)

$1.3168 (1325)

Comments:

- Overall open interest on the CALL options with the expiration date August, 13 is 21479 contracts, with the maximum number of contracts with strike price $1,3600 (3229);

- Overall open interest on the PUT options with the expiration date August, 13 is 21735 contracts, with the maximum number of contracts with strike price $1,3100 (2091);

- The ratio of PUT/CALL was 1.01 versus 1.33 from the previous trading day according to data from July, 6.

* - 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.