The main US stock indexes have moderately decreased, weighed down by the fall of Amazon shares (AMZN) after the US Supreme Court authorized states to force Internet traders to pay sales taxes.

In addition, investors were acting out data on the United States. As the report presented by the Federal Reserve Bank of Philadelphia showed, the index of business activity in the production sector fell sharply in June, reaching a level of 19.9 points compared to 34.4 points in May. Economists had expected the decline of this indicator to the level of 29.0 points.

However, the number of Americans applying for new unemployment benefits fell for the fourth week in a row in mid-June, signaling the stable strength of the labor market. Initial applications for unemployment benefits, a gauge of layoffs across the US, declined by 3,000 to 218,000, seasonally adjusted for the week to June 16. Economists were expecting 220,000 applications. Primary treatment decreases every week from the end of May.

In addition, it became known that the index of leading indicators (LEI) from the Conference Board for the US increased by 0.2 percent in May to 109.5 (2016 = 100), after an increase of 0.4 percent in April and 0.4 percent in March. Analysts had expected an increase of 0.4 percent. "Although the LEI growth in the US in May was slower than in recent months, improvements in most of its components offset the decline in the leading indicators of labor and housing markets," said Ataman Ozildirim, director of business cycles and growth research at the Conference Board. "LEI in the US still indicates solid growth, but the current trend, which is softening, indicates that economic activity is unlikely to accelerate."

Most of the components of DOW finished trading in the red (24 out of 30). Outsider were shares of Caterpillar Inc. (CAT, -2.38%). Leader of growth were shares of Verizon Communications Inc. (VZ, + 1.15%).

Almost all S & P sectors recorded a decline. The largest decrease was shown by the sector of industrial goods (-1.5%). Only the utilities sector grew (+ 0.1%).

At closing:

Index

Dow 24,461.70 -196.10 -0.80%

S&P 500 2,749.76 -17.56 -0.63%

Nasdaq 100 7,712.95 -68.56 -0.88%

U.S. stock-index futures traded flat, as investors were cautious amid growing concerns over U.S.-China trade tension and ahead of OPEC+ meeting in Vienna.

Global Stocks:

U.S. house prices rose in April, up 0.1 percent from the previous month, according to the Federal Housing Finance Agency (FHFA) seasonally adjusted monthly House Price Index (HPI). The previously reported 0.1 percent increase in March was revised upward to 0.2 percent. The FHFA monthly HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. From April 2017 to April 2018, house prices were up 6.4 percent.

For the nine census divisions, seasonally adjusted monthly price changes from March 2018 to April 2018 ranged from -0.5 percent in the West South Central division to +0.6 percent in the East North Central division. The 12-month changes were all positive, ranging from +4.6 percent in the West South Central division to +8.9 percent in the Mountain division.

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

NIKE (NKE) downgraded to Neutral from Buy at UBS

Verizon (VZ) upgraded to Buy from Neutral at Goldman

Sales were up in three of seven subsectors, accounting for 54% of total wholesale sales.

Increases in the machinery, equipment and supplies and the food, beverage and tobacco subsectors were almost completely offset by declines in the motor vehicle and parts subsector.

In volume terms, wholesale sales were unchanged at $54.8 billion.

The machinery, equipment and supplies subsector rose for the third consecutive month, up 2.3% to $13.0 billion in April. This was the largest monthly dollar increase since December 2017. Sales were up in three of four industries, led by the construction, forestry, mining, and industrial machinery, equipment and supplies industry (+5.8%). Imports of logging, mining and construction machinery have also risen for three consecutive months.

Results from the June Manufacturing Business Outlook Survey suggest continued expansion of the region's manufacturing sector. All the broad indicators remained positive, although the indicators for general activity and new orders fell notably. The firms continued to report higher prices for purchased inputs and their own manufactured goods. Expectations for the next six months continued to moderate but remain positive overall.

The diffusion index for current general activity remained positive but decreased 15 points this month. Almost 37 percent of the manufacturers reported increases in overall activity this month, while 17 percent reported decreases. The new orders index fell nearly 23 points this month.

In the week ending June 16, the advance figure for seasonally adjusted initial claims was 218,000, a decrease of 3,000 from the previous week's revised level. The previous week's level was revised up by 3,000 from 218,000 to 221,000. The 4-week moving average was 221,000, a decrease of 4,000 from the previous week's revised average. The previous week's average was revised up by 750 from 224,250 to 225,000.

Employment in Canada increased by 2,900 jobs from April to May according to the May ADP Canada National Employment Report.

"Job growth in Canada slowed in the month of May," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "While construction and trade were detractors from the overall growth, we saw improved growth in information, education, and leisure and hospitality."

• MPC Signals Earlier Start to Reducing QE Portfolio

• To Reduce Stock of Asset Purchases When Bank Rate at 1.5%, Vs 2% Previously

• Future Level of Reserves to Depend on Demand

• Expects Larger Balance Sheet Than Precrisis

• MPC Expects 1Q Softness to Prove Temporary

Sterling falls to its lowest in seven months against a firmer U.S. dollar ahead of a Bank of England interest rate decision at 1100 GMT, where rates are expected to be left on hold at 0.5%. All eyes will be on any hints on the timing of the next interest rate rise, and Morgan Stanley says a "lack of strong new guidance" pointing to a rate increase in August could see sterling come under pressure.

• Sees Deficit of 1.6 Mln B/D to 1.8 Mln B/D in 2H

• Says Won't 'Allow a Shortage'

• 'Not All Countries Can Return to 100% Compliance' Due to Involuntary Declines

• US Petrochemicals Investment, Oil Exports Benefit From Higher Oil Prices

• Output Increase Will Depend on Consensus, Members' Capacity

• If Not for OPEC Action, 'Prices Would Escalate' Due to Lack of Investment

• Saudi Arabia Has 2 Mln B/D of Spare Capacity

• OPEC Alliance's 1M B/D Production Boost Is 'Good Target to Work With'

Public sector net borrowing (excluding public sector banks) in the latest full financial year (April 2017 to March 2018) was £39.5 billion; that is, £6.2 billion less than in the previous financial year (April 2016 to March 2017) and £5.7 billion less than official (Office for Budget Responsibility) expectations; this is the lowest net borrowing since the financial year ending March 2007.

Public sector net borrowing (excluding public sector banks) in the current financial year-to-date (April 2018 to May 2018) was £11.8 billion; that is, £4.1 billion less than in the same period in 2017; this is the lowest year-to-date (April to May) net borrowing since 2007.

Public sector net debt (excluding public sector banks) was £1,781.4 billion at the end of May 2018, equivalent to 85.0% of gross domestic product (GDP), an increase of £44.7 billion (or a decrease of 0.4 percentage points as a ratio of GDP) on May 2017.

• Risks To The Downside For The Global Economy Have Increased

• Main Risks Are Political Developments, Protectionism

• Monetary Policy Won't Be Determined by Fiscal Problems

• Will Do No More than Necessary to Deliver Price Stability Mandate

"The Swiss National Bank (SNB) is maintaining its expansionary monetary policy, thereby stabilising price developments and supporting economic activity. Interest on sight deposits at the SNB remains at −0.75% and the target range for the three-month Libor is unchanged at between −1.25% and −0.25%. The SNB will remain active in the foreign exchange market as necessary, while taking the overall currency situation into consideration. All in all, the value of the Swiss franc has barely changed since the monetary policy assessment of March 2018. The currency remains highly valued. Following the March assessment, the Swiss franc initially depreciated slightly against the US dollar and the euro. However, in light of political uncertainty in Italy, we have since seen countermovement, particularly against the euro.

The situation on the foreign exchange market thus remains fragile, and the negative interest rate and our willingness to intervene in the foreign exchange market as necessary therefore remain essential. These measures keep the attractiveness of Swiss franc investments low and ease pressure on the currency.

The new conditional inflation forecast for the coming quarters is slightly higher than it was in March 2018 due to a marked rise in the price of oil; this price rise ceases to affect annual inflation after the first quarter of 2019. From mid-2019, the new conditional forecast is lower than it was in March 2018, mainly due to the muted outlook in the euro area. At 0.9%, the inflation forecast for 2018 is 0.3 percentage points higher than projected at the March assessment. For 2019, the SNB continues to anticipate inflation of 0.9%. For 2020, we expect to see inflation of 1.6%, compared with 1.9% forecast in the last quarter. The conditional inflation forecast is based on the assumption that the three-month Libor remains at -0.75% over the entire forecast horizon".

EUR/USD

Resistance levels (open interest**, contracts)

$1.1788 (2368)

$1.1732 (983)

$1.1698 (127)

Price at time of writing this review: $1.1554

Support levels (open interest**, contracts):

$1.1475 (4929)

$1.1433 (2204)

$1.1388 (1844)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date July, 9 is 100355 contracts (according to data from June, 20) with the maximum number of contracts with strike price $1,1500 (4929);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3392 (701)

$1.3332 (214)

$1.3276 (160)

Price at time of writing this review: $1.3136

Support levels (open interest**, contracts):

$1.3062 (2474)

$1.3023 (830)

$1.2981 (1230)

Comments:

- Overall open interest on the CALL options with the expiration date July, 9 is 23063 contracts, with the maximum number of contracts with strike price $1,3650 (2444);

- Overall open interest on the PUT options with the expiration date July, 9 is 27425 contracts, with the maximum number of contracts with strike price $1,3250 (2528);

- The ratio of PUT/CALL was 1.19 versus 1.17 from the previous trading day according to data from June, 20.

* - 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.

On the export side, the stagnation of recent months has given way to a slightly upward trend: in May 2018, exports rose by a seasonally adjusted 0.9 percent. Meanwhile, imports rose at a pace of 3.8 per cent. In both directions, chemicals and vehicles accounted for 90 percent of development. The trade balance showed a surplus of 2.3 billion Swiss francs. Exports recorded an increase of 0.9 percent in May 2018 following stagnant months (real: - 0.0 percent). After flattening at the beginning of the year, imports were seasonally adjusted by 3.8 percent (real: + 3.1 percent). The surplus in the trade balance amounted to 2255 million chf.

BoJ Board Member Funo: Rises In Protectionism Could Affect World Economy, Trade Volume, Watching Development With Sense Of Worry - Watching Risk Of Trade Protectionism Affecting Japan Economy.

Economic activity, as measured by gross domestic product (GDP), was up 0.5 percent in the March 2018 quarter. Growth eased slightly after increases of 0.6 percent each in the previous two quarters. GDP grew 2.7 percent over the year ended March 2018.

The service industries were up 0.6 percent in the March 2018 quarter, down from a 1.1 percent increase in the December 2017 quarter. An increase in manufacturing was offset by a fall in construction activity, resulting in a flat quarter for the goods-producing industries. The primary industries were up 0.6 percent, rebounding slightly from a 2.6 percent fall in the previous quarter.

China Commerce Ministry Says US Has Many Structural Problems But Always Uses Other Countries As Scapegoat. US Accusations Of Forced Tech Transfer Is A Severe Distortion Of Reality.