Existing-home sales remained steady in August after four straight months of decline, according to the National Association of Realtors. Sales gains in the Northeast and Midwest canceled out downturns in the South and West. Total existing-home, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, did not change from July and remained at a seasonally adjusted rate of 5.34 million in August. Sales are now down 1.5 percent from a year ago (5.42 million in August 2017). Lawrence Yun, NAR chief economist, says the decline in existing home sales appears to have hit a plateau with robust regional sales. "Strong gains in the Northeast and a moderate uptick in the Midwest helped to balance out any losses in the South and West, halting months of downward momentum," he said. "With inventory stabilizing and modestly rising, buyers appear ready to step back into the market. The median existing-home price2 for all housing types in August was $264,800, up 4.6 percent from August 2017 ($253,100). August's price increase marks the 78th straight month of year-over-year gains".

U.S. stock-index futures rose moderately on Friday, as a slew of strong corporate earnings reports powered a rebound in the stock market after steep losses in the previous session.

Global Stocks:

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

Apple (AAPL) initiated with Outperform at Wedbush; target $310

Travelers (TRV) downgraded to Neutral from Buy at Citigroup

Walt Disney (DIS) upgraded to Overweight from Equal-Weight at Barclays

The Consumer Price Index (CPI) rose 2.2% on a year-over-year basis in September, following a 2.8% increase in August. Month over month, the CPI decreased 0.4% as transitory pressures from the gasoline, air transportation and travel tours indexes, which boosted the all-items CPI in July and August, eased.

Prices were up in all eight major components in the 12 months to September. The transportation index increased at a slower pace in September (+3.9%) than in August (+7.2%), but remained the largest contributor to the year-over-year increase.

Prices for durable goods rose 0.2% year over year, after increasing 1.1% in August. The purchase of passenger vehicles index (+0.6%) rose less on a year-over-year basis in September than in the previous month (+2.3%), which was largely attributable to the lower availability of new model-year vehicles compared with the same month last year.

Sales were down in 7 of 11 subsectors in August, representing 52% of retail trade.

Lower sales at gasoline stations (-2.0%) more than offset gains at motor vehicle and parts dealers (+0.8%). Excluding motor vehicle and parts dealers, retail sales declined 0.4%.

In volume terms, retail sales decreased 0.3%.

Receipts at gasoline stations were down 2.0%, largely reflecting lower volumes in August. After removing the effects of price changes, gasoline sales decreased 1.9%.

Lower sales at clothing and clothing accessories stores (-1.2%) stemmed primarily from clothing stores (-1.1%), which saw sales decline for the first time in six months.

Sales at building material and garden equipment and supplies dealers (-1.1%) declined for the second consecutive month.

Procter & Gamble (PG) reported Q1 FY 2019 earnings of $1.12 per share (versus $1.09 in Q1 FY 2018), beating analysts' consensus estimate of $1.09.

The company's quarterly revenues amounted to $16.690 bln (+0.2% y/y), beating analysts' consensus estimate of $16.451 bln.

The company also issued guidance for FY 2019, projecting EPS of ~$4.35-4.5 (+3-8% y/y; versus analysts' consensus estimate of $4.37) and revenues of ~$65.50-66.83 bln (-2-0% y/y; versus analysts' consensus estimate of $66.58 bln).

PG rose to $84.15 (4.87%) in pre-market trading.

Honeywell (HON) reported Q3 FY 2018 earnings of $2.03 per share (versus $1.74 in Q3 FY 2017), beating analysts' consensus estimate of $1.99.

The company's quarterly revenues amounted to $10.762 bln (+6.3% y/y), generally in line with analysts' consensus estimate of $10.750 bln.

The company also issued Q4 guidance, projecting EPS of $1.85-1.90 (versus analysts' consensus estimate of $2.07) and revenues of $9.6-9.7 bln (versus analysts' consensus estimate of $11.09 bln).

HON rose to $159.75 (+2.94%) in pre-market trading.

PayPal (PYPL) reported Q3 FY 2018 earnings of $0.58 per share (versus $0.46 in Q3 FY 2017), beating analysts' consensus estimate of $0.54.

The company's quarterly revenues amounted to $3.683 bln (+13.7% y/y), generally in-line with analysts' consensus estimate of $3.663 bln.

The company also issued in-line guidance for Q4, projecting EPS of $0.65-0.67 (versus analysts' consensus estimate of $0.65) and revenues of $4.195-4.275 bln (versus analysts' consensus estimate of $4.21 bln).

It raised its FY 2018 EPS guidance to $2.38-2.40 from $2.32-2.35 and revenue guidance to $15.42-15.50 bln from $15.3-15.5 bln.

PYPL rose to $82.66 (+6.69%) in pre-market trading.

American Express (AXP) reported Q3 FY 2018 earnings of $1.88 per share (versus $1.50 in Q3 FY 2017), beating analysts' consensus estimate of $1.77.

The company's quarterly revenues amounted to $10.144 bln (+9.2% y/y), generally in-line with analysts' consensus estimate of $10.060 bln.

The company also issued upside guidance for FY 2018, projecting EPS of $7.30-7.40 (compared to its prior guidance of "high end of $6.90-7.30" and analysts' consensus estimate of $7.29) and revenues of +9-10% y/y (versus its prior growth guidance of "at least 9%").

AXP rose to $104.00 (+1.13%) in pre-market trading.

But Salvini, who is also the leader of the League's right-wing party, said that the decree containing this proposal should remain in force if they do not want to create a dangerous precedent.

While the 5-Star opposition movement has always opposed the tax amnesty bill, the League, with its traditional electoral base of self-employed businessmen, is more positively inclined to pass the bill.

On Friday, the head of the 5 Star Luigi Di Mayo said that the dispute with a partner in the coalition League over the tax amnesty bill must be sorted out.

"We will move forward. And there is absolutely no state crisis," said Salvini in an interview with Il Messaggero. But he described the clash with Di Mayo as a "big misunderstanding."

Borrowing (Public sector net borrowing excluding public sector banks) in September 2018 was £4.1 billion, £0.8 billion less than in September 2017; this was the lowest September borrowing for 11 years (since 2007).

Borrowing in the current financial year-to-date (YTD) was £19.9 billion: £10.7 billion less than in the same period in 2017; the lowest year-to-date for 16 years (since 2002).

Borrowing in the financial year ending (FYE) March 2018 was £39.8 billion: £5.7 billion less than in FYE March 2017; the lowest financial year for 11 years (since FYE 2007).

This month we have introduced improvements to our treatment of Value Added Tax (VAT) refunds data; although public sector borrowing-neutral, VAT receipts have increased by £1.8 billion in the current financial YTD and £3.3 billion in FYE March 2018, with corresponding and offsetting increases in expenditure in those periods.

Debt (Public sector net debt excluding public sector banks) at the end of September 2018 was £1,789.5 billion (or 84.3% of gross domestic product (GDP)); an increase of £3.4 billion (or a decrease of 2.4 percentage points) on September 2017.

• Lifts European Mkt Forecast For Heavy-Duty Trucks in 2018 to 315,000 From 310,000, 2019 Mkt Seen at About 300,000

• North American Customers Renewing and Expanding Fleets, A Devt Which is Expected to Continue Into 2019

• There is More to do to Improve Profitability and Drive Cash Flow

• High Activity Level in N Amer Econ Translates Into Strong Freight Environment With High Transport Volumes and Good Freight Rates

• Chinese Demand For Trucks Started to Slow Down, Sees 2019 Market For Heavy- and Medium-Duty Trucks at 1.15 Million Vehicles

In August 2018 the current account of the euro area recorded a surplus of €24 billion, compared with a surplus of €19 billion in July 2018.

In the 12-month period to August 2018, the current account recorded a surplus of €379 billion (3.3% of euro area GDP), compared with one of €330 billion (3.0% of euro area GDP) in the 12-month period to August 2017.

In the financial account, euro area residents made net acquisitions of foreign portfolio investment securities of €406 billion in the 12-month period to August 2018 (decreasing from €514 billion in the 12 months to August 2017). Non-residents' net purchases of euro area portfolio investment securities amounted to €145 billion (down from €208 billion in the 12-month period to August 2017).

• Brexit accord is possible but difficult

EUR/USD

Resistance levels (open interest**, contracts)

$1.1617 (925)

$1.1593 (554)

$1.1559 (122)

Price at time of writing this review: $1.1453

Support levels (open interest**, contracts):

$1.1424 (2995)

$1.1393 (6148)

$1.1358 (3389)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date November, 19 is 82476 contracts (according to data from October, 18) with the maximum number of contracts with strike price $1,1450 (6148);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3157 (802)

$1.3126 (388)

$1.3097 (621)

Price at time of writing this review: $1.3029

Support levels (open interest**, contracts):

$1.2966 (2183)

$1.2939 (1989)

$1.2909 (3155)

Comments:

- Overall open interest on the CALL options with the expiration date November, 19 is 23416 contracts, with the maximum number of contracts with strike price $1,3500 (3291);

- Overall open interest on the PUT options with the expiration date November, 19 is 28759 contracts, with the maximum number of contracts with strike price $1,3000 (3155);

- The ratio of PUT/CALL was 1.23 versus 1.19 from the previous trading day according to data from October, 18

* - 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.

Annual core consumer inflation in Japan rose in September, but it remains half the central bank's 2 percent target, as the escalation of trade friction darkens economic prospects.

While the growth rates were the fastest in the last seven months, the increase was mainly due to an increase in oil spending, since the prices of most other commodities rose slightly, according to government data.

The National Consumer Price Index (CPI), which eliminates the impact of volatile spending on fresh food, rose 1.0% in September, after rising 0.9% in August.

The so-called core consumer price index, a more closely observed indicator used by the Bank of Japan, which excludes food prices and energy costs, was 0.4% in September.

Governor of the Bank of Japan, Haruhiko Kuroda, on Thursday offered a slightly more optimistic view on prices than three months ago, saying that the main consumer inflation "is moving towards 1%."

Rising energy prices may give the Bank of Japan a reason to slightly reconsider its inflation forecasts, although the increase may be mitigated by uncertainty about the consequences of trade friction, analysts say.

According to current forecasts made in July, the Bank of Japan expects core consumer inflation to reach 1.1% in the current fiscal year, which will end in March 2019, and accelerate to 1.5% next year.

The Japanese economy recovered in the second quarter after a decline in the first three months of this year, helped by sustainable business spending.

But the worsening trade frictions and a number of natural disasters that disrupted the supply chain overshadow the prospects for an export-dependent economy, with some analysts predicting a slight contraction in the third quarter.

China's gross domestic product expanded a seasonally adjusted 1.6 percent on quarter in the third quarter of 2018, according to rttnews.

That was in line with expectations and down from 1.8 percent in the three months prior.

On a yearly basis, GDP climbed 6.5 percent - shy of estimates for 6.6 percent and down from 6.7 percent in the previous three months.

The bureau also said that industrial production climbed 5.8 percent on year in September, shy of forecasts for 6.0 percent and down from 6.1 percent in August.

Retail sales climbed an annual 9.2 percent, beating forecasts for 9.0 percent - which would have been unchanged.

Fixed asset investment gained 5.4 percent on year, topping expectations for 5.3 percent - which again would have been unchanged.