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

In Asian Equity Markets stocks edged down on Friday but were on track for weekly gains, while the euro became more settled after the volatility seen in the wake of the European Central Bank's decision to trim the size of its asset purchase program while also extending it for longer than many analysts had expected. MSCI's broadest index of Asia-Pacific stocks outside Japan fell 0.3 percent, and was poised for a weekly gain of 1.9 percent. The benchmark Nikkei gained 1.2 percent to 18,996.37, the highest closing level since December 2015. The broader Topix gained 0.8 percent to 1,525.36 and the JPX-Nikkei Index 400 advanced 0.8 percent to 13,655.69. The Shanghai Composite rose 0.4 percent and the Hang Seng Index fell 0.48 percent. 

 

In Currency Markets the dollar rose broadly on Friday as U.S. bond yields rose, while the euro sank after the European Central Bank's decision to extend its debt-buying program even as it cut the size of its purchases disappointed currency bulls. The greenback was up 0.4 percent at 114.430 yen, coming within the reach of a 10-month high of 114.830 set last week. The euro lost 0.2 percent to $1.05920, after falling 1.3 percent overnight, the biggest intraday loss since late June. The Australian dollar fell 0.1 percent to $0.7452 against a broadly higher dollar. The New Zealand dollar was steady at $0.7173. The dollar index gained 0.1 percent to 101.230 following an overnight rise of nearly 1 percent. It was on track to gain 0.3 percent this week.

 

In Commodities Markets  oil prices extended gains on Friday on optimism that non-OPEC producers would agree to cut output following a cartel agreement to limit production, but the upside was limited amid uncertainty over the size of the production curbs. London Brent crude for February delivery was up 17 cents at $54.06 a barrel, after settling up 1.7 percent on Thursday. NYMEX crude for January delivery was up 33 cents at $51.17 a barrel. Both contracts are set for a weekly decline of around 1 percent. Spot gold was down 0.3 percent at $1,167.38 an ounce and was set for a weekly decline of about 0.8 percent, pressured by the stronger U.S. dollar and expectations that the Fed will raise interest rates next week.

 

In US Equity Markets  stock indexes climbed again on Thursday and set fresh record highs as a month-long rally following the presidential election of Donald Trump rolled on. The Dow Jones industrial average rose 0.33 percent, to 19,614.81, the S&P 500 gained 0.22 percent, to 2,246.19 and the Nasdaq Composite added 0.44 percent, to 5,417.36. Financials led the way again on Thursday, rising 0.9 percent. Industrials fell back 0.5 percent, weighed down by defense stocks. Lululemon rose  15 percent after the yoga and leisure apparel retailer reported a better-than-expected quarterly profit. Express Scripts shares tumbled 6.7 percent after short-seller Citron Research called the pharmacy benefit manager the "real culprit" in drug price gouging.

  

In Bond Markets the benchmark Japanese government bond yield hit a 10-month high on Friday as the super long maturities fell following the previous day's 30-year debt auction. The 30-year JGB yield rose 5.5 basis points to 0.705 percent , its highest since mid-March. The 10-year benchmark JGB yield was up 1 basis point at 0.050 percent after hitting 0.055 percent, its highest since February. Japan's finance ministry had sold 800 billion yen ($7.00 billion) of 30-year JGBs on Thursday.

 

 

Economic Calendar

  • 16:00 GMT+0 US Prelim UoM Consumer Sentiment

 

US Equity Upgrades

  • AMD (AMD) UPGRADED TO BUY FROM UNDERPERFORM AT BOFA/MERRILL
  • AUTODESK (ADSK) UPGRADED TO NEUTRAL FROM SELL AT ROSENBLATT
  • BARCLAYS (BCS) UPGRADED TO HOLD FROM UNDERPERFORM AT JEFFERIES
  • CHARLES SCHWAB (SCHW) ASSUMED WITH OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE
  • CIMAREX ENERGY (XEC) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
  • CORESITE REALTY (COR) UPGRADED TO BUY FROM NEUTRAL AT CITI
  • CREDIT SUISSE (CS) UPGRADED TO OVERWEIGHT FROM UNDERWEIGHT AT JPMORGAN
  • DELEK US (DK) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
  • DIGITAL REALTY (DLR) UPGRADED TO BUY FROM NEUTRAL AT CITI
  • DUPONT FABROS (DFT) UPGRADED TO BUY FROM NEUTRAL AT CITI
  • FERRELLGAS PARTNERS (FGP) UPGRADED TO SECTOR PERFORM FROM UNDERPERFORM AT RBC CAPITAL
  • HESS CORP. (HES) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
  • JUNIPER (JNPR) UPGRADED TO BUY FROM NEUTRAL AT NOMURA
  • LULULEMON (LULU) UPGRADED TO BUY FROM NEUTRAL AT MIZUHO
  • LULULEMON (LULU) UPGRADED TO BUY FROM SELL AT EVERCORE ISI
  • LULULEMON (LULU) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT BOFA/MERRILL
  • MPLX (MPLX) UPGRADED TO BUY FROM HOLD AT EVERCORE ISI
  • RSP PERMIAN (RSPP) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
  • SCOTTS MIRACLE-GRO (SMG) UPGRADED TO BUY FROM UNDERPERFORM AT BOFA/MERRILL
  • TAILORED BRANDS (TLRD) UPGRADED TO BUY FROM NEUTRAL AT MIZUHO
  • WPP PLC (WPPGY) UPGRADED TO BUY FROM HOLD AT JEFFERIES

 

US Equity Downgrades

  • ARC LOGISTICS (ARCX) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
  • AZZ INC. (AZZ) DOWNGRADED TO SELL FROM HOLD AT STIFEL
  • CEB (CEB) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • CONTINENTAL RESOURCES (CLR) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • CONTINENTAL RESOURCES (CLR) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
  • EMCOR (EME) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • FITBIT (FIT) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • HELMERICH & PAYNE (HP) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL
  • L-3 COMMUNICATIONS (LLL) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL
  • LINCOLN ELECTRIC (LECO) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • MUNICH RE (MURGY) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
  • SANCHEZ ENERGY (SN) DOWNGRADED TO HOLD FROM ACCUMULATE AT KLR GROUP
  • SL GREEN REALTY (SLG) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
  • SWISS RE (SSREY) DOWNGRADED TO UNDERPERFORM FROM HOLD AT JEFFERIES
  • TAYLOR MORRISON (TMHC) DOWNGRADED TO HOLD FROM BUY AT GABELLI
  • TD AMERITRADE (AMTD) ASSUMED WITH MARKET PERFORM FROM OUTPERFORM AT KEEFE BRUYETTE
  • TIMKEN (TKR) DOWNGRADED TO HOLD FROM BUY AT STIFEL

 

US Equity Initiations

  • ACUITY BRANDS (AYI) INITIATED WITH AN UNDERPERFORM AT JMP SECURITIES
  • COGNEX (CGNX) INITIATED WITH A BUY AT DEUTSCHE BANK
  • COSTCO (COST) INITIATED WITH AN OUTPERFORM AT CREDIT SUISSE
  • CREE (CREE) INITIATED WITH AN OUTPERFORM AT JMP SECURITIES
  • ENVISION HEALTHCARE (EVHC) REINSTATED WITH AN OVERWEIGHT AT JPMORGAN
  • EXPEDIA (EXPE) INITIATED WITH AN OUTPERFORM AT CLSA
  • FIVE STAR QUALITY (FVE) INITIATED WITH A BUY AT CANTOR
  • INTERACTIVE BROKERS (IBKR) ASSUMED WITH AN OUTPERFORM AT KEEFE BRUYETTE
  • JD WETHERSPOON (JDWPY) INITIATED WITH A SELL AT DEUTSCHE BANK
  • PRICELINE (PCLN) INITIATED WITH A BUY AT CLSA
  • RICE ENERGY (RICE) INITIATED WITH AN OVERWEIGHT AT MUFG
  • RICE ENERGY (RICE) INITIATED WITH AN OVERWEIGHT AT MUFG
  • TRIPADVISOR (TRIP) INITIATED WITH AN UNDERPERFORM AT CLSA

 

 

 

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