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09 Dec 2016 17:57 GMT+0 - Closing Wrap

In European Equity Markets stocks rallied on Friday, with the benchmark index scoring a fifth straight day of gains as investors largely continued to cheer the European Central Bank's decision to extend its stimulus efforts. The Stoxx Europe 600 index closed 1 percent higher at 355.38, marking its highest closing level since early January this year. Banks across Europe logged solid gains after the ECB decision on Thursday, helping Stoxx Europe 600 Bank Index end the week 9.5 percent higher. Germany's exporter-heavy DAX 30 equity index rose 0.2 percent to 11,203.63, its highest closing level in a year. France's CAC 40 rose 0.6 percent to 4,764.07, and the U.K.'s FTSE 100 picked up 0.3 percent to 6,954.21.

 

In Currency Markets the euro fell on Friday for the second consecutive day after the European Central Bank on Thursday extended its bond-buying program longer than many had anticipated, even as it cut the size of the monthly purchases. The dollar gained 0.37 percent to 101.47 against a basket of six major currencies. Against the Japanese yen, the greenback increased as high as 115.27 yen, its highest since Feb. 9, and was last up 0.76 percent at 114.86 yen. The euro fell to $1.0548, its lowest since Monday, and was last down 0.47 percent at $1.0566. Sterling was little changed at $1.2580. The Australian dollar held steady, with Aussie at $0.7465, while Kiwi fell 0.17 percent to $0.7162.

 

In Commodities Markets  oil prices rose about 1 percent on Friday, trading within a narrow range, on hopes that non-OPEC producers meeting in Vienna over the weekend would agree to cut output to bolster the group's own agreement to limit production. U.S. crude's West Texas Intermediate futures for January delivery rose 67 cents to $51.51 a barrel, a 1.3 percent gain. Brent crude futures for February delivery rose 36 cents to $54.25 a barrel, a 0.7 percent gain. Russia has said it would cut 300,000 barrels per day, meaning other non-OPEC producers combined would need to pledge the same amount to lower output by the 600,000 bpd OPEC wants.

 

In US Equity Markets  major stock indexes hit record highs for the third day in a row on Friday as the post-election rally got a lift from healthcare and technology stocks. The Dow Jones Industrial Average was up 0.21 percent, at 19,655.76. The S&P 500 was up 0.27 percent, at 2,252.28. The Nasdaq Composite was up 0.5 percent, at 5,444.44. Six of the 11 major S&P 500 sectors were higher, led by a 1.03 percent rise in health stocks and a 0.5 percent rise in technology. Coca-Cola rose 2.6 percent after the company said Muhtar Kent would step down as chief executive and named Chief Operating Officer James Quincey as his successor. Broadcom rose 5.3 percent after the chipmaker reported upbeat fourth-quarter results and doubled its dividend.

 

In Bond Markets U.S. Treasury yields climbed on Friday with benchmark yields on track for a fifth straight week of increases following stronger-than-forecast Chinese inflation data and ahead of $56 billion of coupon-bearing government bond supply next week. Benchmark 10-year Treasury note yield was last at 2.415 percent, up 2 basis points from Thursday after touching a session high at 2.445 percent earlier on Friday. The Treasury Department will sell $24 billion of three-year notes and $20 billion in 10-year notes on Monday and $12 billion of 30-year bonds on Tuesday.

 

 

European Equity Earnings

  • Carl Zeiss Meditec (AFX GY) - Co. report FY15/16 EBIT EUR 154.3mln vs. Prev. EUR 130.6mln Y/Y and revenue EUR 1.09bln vs. Prev. EUR 1.04bln Y/Y.
  • Elior Group (ELR FP) - FY16 net EUR 135mln vs. Prev. EUR 107mln Y/Y, EBITDA EUR 501mln vs. Prev. EUR 475mln Y/Y, rev EUR 5.90bln vs. Prev. EUR 5.67bln Y/Y.
 

European Equity Upgrades/Downgrades

  • ASTRAZENECA (AZN LN) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT LEERINK
  • GLENCORE (GLEN LN) UPGRADED TO ADD FROM HOLD AT ALPHAVALUE
  • INTERTEK (ITRK LN) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN SACHS
  • WEIR GROUP (WEIR LN) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
  • DEUTSCHE POST DHL (DPW GY) INITIATED WITH A BUY AT HSBC
  • GEA GROUP (G1A GY) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
  • ABN AMRO (AABA NA) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC
  • BPOST (BPOST BB) RESUMED WITH A BUY AT HSBC
  • CAIXABANK (CABK SM) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC
  • COSMO PHARMACEUTICALS (COPN VX) INITIATED WITH A BUY AT BERENBERG
  • ATLAS COPCO (ATCOA SS) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
  • SANDVIK (SAND SS) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JPMORGAN

 

 

 


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