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07 Dec 2016 07:11 GMT+0 - Opening Wrap

In Asian Equity Markets stocks edged up on Wednesday as investors covered short positions and looked to the upcoming policy meeting of the European Central Bank for comfort after a referendum defeat tipped Italy into political turmoil. MSCI's broadest index of Asia-Pacific stocks outside Japan rose 0.25 percent. The Nikkei gained 0.7 percent to 18,496.69 points. The broader Topix advanced 0.9 percent to 1,490.62 and the JPX-Nikkei Index 400 added 0.8 percent to 13,344.30. Australian stocks rose 0.7 percent despite data showing the economy contracted in the third quarter. The Shanghai composite however bucked the trend, down 0.05 percent, while Hong Kong's Hang Seng gained 0.3 percent. 

 

In Currency Markets the euro and dollar were steady on Wednesday as traders paused for the outcome of Thursday's European Central Bank policy meeting, which may set the tone for currency markets after the sharp moves in the wake of last month's U.S. election. The euro was little changed at $1.0720 after falling 0.5 percent overnight. The dollar was steady at 114.069 yen after edging up about 0.2 percent overnight following a modest rise in U.S. bond yields. The Australian dollar was down 0.4 percent at $0.7428 and the New Zealand dollar was flat at $0.7117, drawing support from a falling Aussie. The Canadian dollar ended a three-day winning run to end lower overnight. It was down about 0.1 percent at C$1.3289 per dollar.

 

In Commodities Markets oil prices fell on Wednesday on persistent doubts whether a planned crude production cut led by OPEC and Russia would be deep enough to end a supply overhang that has dogged markets for over two years. International Brent crude futures were at $53.82 per barrel, down 0.2 percent, from their last close. U.S. WTI crude futures were down 0.33 percent, at 50.76 per barrel. Oil prices shot up as much as 19 percent after the OPEC and Russia last week announced they would jointly cut production next year in an attempt to prop up markets.Gold prices edged up in Asia on Tuesday on mild buying sentiment following sustained falls in the past month for the yellow metal. Gold futures rose 0.07 percent to $1,170.95 a troy ounce.

 

In US Equity Markets stocks rose on Tuesday as telecom stalwarts AT&T and Verizon gained and bank shares added to their torrid post-election rally, helping the Dow set another record closing high. The S&P 500 gained 0.34 percent, to 2,212.23 and the Nasdaq Composite added 0.45 percent, to 5,333.00. AT&T rose 1.9 percent. The company said its new streaming television service DirectTV Now has so far exceeded expectations. Verizon climbed 1.2 percent. The No. 1 U.S. wireless carrier is selling 29 data centers to Equinix for $3.6 billion. Nike fell 2.5 percent after Cowen & Co downgraded the shoe and apparel maker's shares to "market perform." The S&P financial sector rose nearly 1 percent, lifted by a 2.2 percent gain for Wells Fargo. 

 

In Bond Markets benchmark Japanese government bonds firmed slightly on Wednesday, though superlong JGBs weakened as investors positioned for the next session's 30-year sale. The benchmark 10-year yield edged down 1 basis point (bp) to 0.035 percent. But the 20-year JGB yield added 1 basis points to 0.510 percent after earlier rising to 0.520 percent, its highest level since March. The 30-year JGB yield added 0.5 bp to 0.630 percent, while the 40-year JGB yield rose 1 bp to 0.740 percent.

 

 

Economic Calendar

  • 10:30 GMT+0 UK Manufacturing Production m/m
  • 16:00 GMT+0 CAD BOC Rate Statement
  • 16:00 GMT+0 CAD Overnight Rate
  • 16:30 GMT+0 US Crude Oil Inventories
  • 21:00 GMT+0 NZD RBNZ Gov Wheeler Speaks


US Equity Earnings

  • AutoZone (AZO) - Q1 EPS USD 9.36 vs. Exp. USD 9.36 and Q1 revenue USD 2.5bln vs. Exp. USD 2.5bln.
  • Bank Of Montreal (BMO) - Q3 EPS USD 2.10 vs. Exp. USD 1.40 and Q3 revenue USD 5.28bln vs. Exp. USD 5.20bln.

 

US Equity Upgrades

  • ANTERO MIDSTREAM (AM) UPGRADED TO BUY FROM HOLD AT STIFEL
  • BANKUNITED (BKU) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
  • CULLEN/FROST (CFR) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT BARCLAYS
  • GALP ENERGIA (GLPEY) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK
  • GREEN PLAINS PARTNERS (GPP) UPGRADED TO BUY FROM HOLD AT STIFEL
  • HSBC (HSBC) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT MORGAN STANLEY
  • INFINEON (IFNNY) UPGRADED TO BUY FROM NEUTRAL AT CITI
  • MARTIN MIDSTREAM PARTNERS (MMLP) UPGRADED TO BUY FROM HOLD AT STIFEL
  • NETFLIX (NFLX) UPGRADED TO HOLD FROM SELL AT EVERCORE ISI
  • NGL ENERGY PARTNERS (NGL) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
  • PANDORA (P) UPGRADED TO OUTPERFORM FROM PERFORM AT OPPENHEIMER
  • REXEL (RXEEY) UPGRADED TO BUY FROM NEUTRAL AT CITI
  • SOCIETE GENERALE (SCGLY) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • STARBUCKS (SBUX) UPGRADED TO BUY FROM HOLD AT EDWARD JONES
  • SYNOVUS (SNV) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT BARCLAYS
  • UBS (UBS) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • UNITED CONTINENTAL (UAL) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL

 

US Equity Downgrades

  • ABM (ABM) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
  • ARC LOGISTICS (ARCX) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • CINCINNATI BELL (CBB) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT RAYMOND JAMES
  • COCA-COLA EUROPEAN PARTNERS (CCE) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • CONSOLIDATED COMMUNICATIONS (CNSL) DOWNGRADED TO MARKET PERFORM AT RAYMOND JAMES
  • CORE LABORATORIES (CLB) DOWNGRADED TO NEUTRAL FROM BUY AT GUGGENHEIM
  • COTT CORP. (COT) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • DIME COMMUNITY (DCOM) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
  • DUCOMMUN (DCO) DOWNGRADED TO NEUTRAL FROM BUY AT B. RILEY
  • ELECTROLUX AB (ELUXY) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
  • ESSENT GROUP (ESNT) DOWNGRADED TO NEUTRAL FROM BUY AT BTIG
  • FULTON FINANCIAL (FULT) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
  • HELMERICH & PAYNE (HP) DOWNGRADED TO NEUTRAL FROM BUY AT GUGGENHEIM
  • INVESTORS BANCORP (ISBC) DOWNGRADED TO UNDERWEIGHT FROM OVERWEIGHT AT BARCLAYS
  • IRHYTHM TECHNOLOGIES (IRTC) DOWNGRADED TO NEUTRAL FROM BUY AT BTIG
  • JUNO THERAPEUTICS (JUNO) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
  • NATIONAL OILWELL (NOV) DOWNGRADED TO NEUTRAL FROM BUY AT GUGGENHEIM
  • NIKE (NKE) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT COWEN
  • NUCOR (NUE) UPGRADED TO BUY FROM HOLD AT BERENBERG
  • ORIGIN ENERGY (OGFGY) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
  • OSHKOSH (OSK) DOWNGRADED TO NEUTRAL FROM BUY AT LONGBOW
  • PATTERSON-UTI (PTEN) DOWNGRADED TO NEUTRAL FROM BUY AT GUGGENHEIM
  • PENNTEX (PTXP) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • RENT-A-CENTER (RCII) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
  • RPC, INC. (RES) DOWNGRADED TO NEUTRAL FROM BUY AT GUGGENHEIM
  • SELECT COMFORT (SCSS) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT WEDBUSH
  • SKYWEST (SKYW) DOWNGRADED TO HOLD FROM BUY AT EVERCORE ISI
  • STEEL DYNAMICS (STLD) UPGRADED TO BUY FROM HOLD AT BERENBERG
  • SUNPOWER (SPWR) DOWNGRADED TO NEUTRAL FROM BUY AT GUGGENHEIM
  • TOTAL (TOT) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • TULLOW OIL (TUWOY) DOWNGRADED TO SELL FROM NEUTRAL AT GOLDMAN

 

US Equity Initiations 

  • AMD (AMD) INITIATED WITH A BUY AT LOOP CAPITAL
  • AMERICAN TOWER (AMT) INITIATED WITH AN OUTPERFORM AT MACQUARIE
  • CARRIZO OIL & GAS (CRZO) INITIATED WITH A STRONG BUY AT RAYMOND JAMES
  • CAVIUM (CAVM) INITIATED WITH A BUY AT LOOP CAPITAL
  • CYPRESS SEMICONDUCTOR (CY) INITIATED WITH A BUY AT LOOP CAPITAL
  • EATON (ETN) INITIATED WITH A BUY AT AEGIS
  • GDS HOLDINGS (GDS) INITIATED WITH AN OUTPERFORM AT RBC CAPITAL
  • HARMONIC (HLIT) INITIATED WITH A BUY AT DOUGHERTY
  • INTEGRATED DEVICE (IDTI) INITIATED WITH A BUY AT LOOP CAPITAL
  • INVENSENSE (INVN) INITIATED WITH A BUY AT LOOP CAPITAL
  • LEIDOS (LDOS) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER
  • M/I HOMES (MHO) INITIATED WITH AN OUTPERFORM AT WEDBUSH
  • MARVELL (MRVL) INITIATED WITH A BUY AT LOOP CAPITAL
  • MAXIM INTEGRATED (MXIM) INITIATED WITH A BUY AT LOOP CAPITAL
  • MCCORMICK (MKC) INITIATED WITH A BUY AT BOFA/MERRILL
  • MEDGENICS (MDGN) INITIATED WITH A BUY AT H.C. WAINWRIGHT
  • PANDORA (P) INITIATED WITH A BUY AT AEGIS
  • PLUG POWER (PLUG) INITIATED WITH A BUY AT RODMAN & RENSHAW
  • RAMBUS (RMBS) INITIATED WITH A BUY AT LOOP CAPITAL
  • RESOLUTE ENERGY (REN) INITIATED WITH A BUY AT KLR GROUP
  • SILICON MOTION (SIMO) INITIATED WITH A BUY AT LOOP CAPITAL
  • SKECHERS (SKX) INITIATED WITH AN OUTPERFORM AT WELLS FARGO
  • SPS COMMERCE (SPSC) INITIATED WITH A BUY AT BENCHMARK
  • XO GROUP (XOXO) INITIATED WITH A BUY AT AEGIS
  • ZYNERBA (ZYNE) REINSTATED WITH A BUY AT JEFFERIES

 

 

 

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