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07 Dec 2016 18:33 GMT+0 - Closing Wrap

In European Equity Markets stocks climbed on Wednesday, with the regional banking index hitting an 11-month peak after Credit Suisse announced further cost cuts and Italian banks rose in their best two-day run since mid-2011. The STOXX Europe 600 Banks index was up 2.3 percent after touching its highest level since January, supported by an 7.4 percent rise in Credit Suisse after the Swiss bank announced more than 1 billion Swiss francs ($991 million) in extra cost cuts. The pan-European STOXX 600 rose 0.9 percent, at its highest since end-September. Healthcare stocks fell 1 percent after U.S. President-elect Donald Trump said he would "bring down drug prices."

 

In Currency Markets the euro gained slightly on the dollar on Wednesday as investors focused on Thursday's ECB meeting for possible indications on when the central bank may begin paring bond purchases under its quantitative easing program. The euro was last up 0.25 percent against the dollar, at $1.0744, after hitting a three-week high of $1.0796 on Monday. The dollar was flat at 113.96 yen.  Sterling fell as much as 0.8 percent to hit a one-week low of 85.255 pence against the euro after data showed British industrial output suffered its biggest monthly fall in more than four years. The Australian dollar fell as low $0.7411 before retracing losses after data showed Australia's economy shrank 0.5 percent last quarter, the largest decline since 2008.

 

In Commodities Markets oil prices eased on Wednesday on bearish U.S. petroleum inventory data and doubts that production cuts promised by OPEC and Russia would be deep enough to end a supply overhang that has weighed on markets for more than two years. Brent futures were down 0.9 percent, at $53.47 a barrel. U.S. crude fell 1.2 percent, to $50.34 per barrel. The U.S. Energy Information Administration said crude inventories fell 2.4 million barrels during the week ended Dec. 2, which was more than the 1 million-barrel draw analysts forecast. Stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures, however, increased by a hefty 3.8 million barrels last week, the most since 2009, the data showed.

 

In US Equity Markets  the S&P 500 and the Dow hit record intraday highs on Wednesday, helped by gains in bank stocks, but President-elect Donald Trump's comments on drug prices slammed the healthcare sector, pulling down the Nasdaq. The Dow Jones industrial average was up 0.08 percent, at 19,267.02. The S&P 500 was up 0.09 percent, at 2,214.25 and the Nasdaq Composite was down 0.04 percent, at 5,330.74. Pfizer's shares fell 2.7 percent after Britain's competition watchdog fined the drugmaker $107 million for its role in ramping up the cost of an epilepsy drug by as much as 2,600 percent.  Western Digital rose 4.8 percent after the data storage maker raised its second-quarter profit and revenue forecasts.

 

In Bond Markets prices on longer-dated U.S. Treasuries extended their earlier rise on Wednesday following a large block purchase of 10-year Treasury note futures in the wake of disappointing overseas data that pushed foreign yields lower. Benchmark 10-year Treasury notes were up 12/32 in price to yield 2.351 percent, down 4.5 basis points from late on Tuesday. Germany's 10-year bond yield fell three basis points to 0.33 percent, after climbing to 0.38 percent, the highest since Nov. 14.

 

 

European Equity Upgrades/Downgrades

  • RIO TINTO (RIO AT) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
  • BHP BILLITON (BLT LN) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
  • AVIVA (AV/ LN) UPGRADED TO OUTPERFORM FROM UNDERPERFORM AT RBC
  • HISCOX (HSX LN) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC
  • BAYER (BAYN GY) UPGRADED TO BUY FROM NEUTRAL AT UBS
  • DEUTSCHE POST DHL (DPW GY) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC
  • AURUBIS (NDA GY) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
  • PROSIEBENSAT.1 (PSM GY) UPGRADED TO BUY FROM HOLD AT BANKHAUS LAMPE
  • L'OREAL (OR FP) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
  • REMY COINTREAU (RCO FP) DOWNGRRADED TO SELL FROM HOLD AT LIBERUM CAPITAL
  • SCOR (SCR FP) DOWNGRADED TO IMDERPERFORM FROM SECTOR PERFORM AT RBC
  • WORDLINE (WLN FP) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS
  • DELTA LLOYD (DL NA) UPGRADED TO SECTOR PERFORM FROM UNDERPERFORM AT RBC
  • NN GROUP (NN NA) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC
  • SWISS REINSURANCE (SREN VX) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC
  • ZURICH INSURANCE GROUP (ZURN VX) UPGRADED TO SECTOR PERFORM FROM UNDERPERFORM AT RBC
  • BOLIDEN (BOL SS) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • ELEKTA (EKTAB SS) DOWNGRADED TO UNDERPERFORM FROM HOLD AT JEFFERIES
  • STOREBRAND (STB NO) DOWNGRADED TO UNDERPERFORM FROM SECTOR PERFROM AT RBC

 

 

 


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