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12 Dec 2016 18:36 GMT+0 - Closing Wrap

In European Equity Markets stocks rose to their highest in eleven months on Thursday as the European Central Bank's unexpected decision to cut its monthly asset purchases helped banks extend their rally. The pan-European STOXX 600 index rose 1.2 percent to its highest since Jan. 6, also helped by gains in other cyclical sectors such as miners and autos. The Italian banking index rose 3.6 percent to a five-month high with Monte dei Paschi rising 4.1 percent. The bank has asked the ECB for more time to wrap up a 5 billion euro ($5.4 billion) rescue plan that was thrown into doubt by Renzi's resignation. Shares in UniCredit, Italy's biggest lender, were also buoyed by a 2.5 billion euros deal to sell its Polish assets.

 

In Currency Markets the U.S. dollar fell against most major currencies on Monday on concerns that the Fed could suggest in an upcoming policy statement that the greenback's gains had gone too far, while a rally in oil prices boosted commodity-linked currencies. The euro rose as much as 0.7 percent against the dollar to a session high of $1.0625 after falling to a one-week low of $1.0526 in early trading. The dollar was last flat against the yen at 115.35 yen. The dollar was last down 0.4 percent against the Canadian dollar at C$1.3122. The Aussie was up 0.6 percent against the dollar at $0.7500, while the New Zealand dollar was up 0.9 percent against the greenback at $0.7201. The dollar index was last down 0.45 percent at 101.130. 

 

In Commodities Markets  oil rose by as much as 6.5 percent on Monday to an 18-month high after OPEC and some of its rivals reached their first deal since 2001 to jointly reduce output to try to tackle global oversupply. On Saturday, producers from outside the OPEC, led by Russia, agreed to reduce output by 558,000 bpd, short of the target of 600,000 bpd but still the largest contribution by non-OPEC ever. U.S. crude futures were up $1.82 at $53.32 a barrel, a 3.5 percent gain. Brent crude futures were up $1.94 at $56.27 per barrel, a 3.5 percent rise, after hitting a session peak of $57.89, the highest since July 2015. Three-month copper closed 1 percent down at $5,768 a tonne and aluminium lost 1.1 percent to close at $1,731.

 

In US Equity Markets  the S&P 500 and the Dow hit fresh record highs on Monday, fueled by energy stocks, while the Nasdaq was lower, a day ahead of the U.S. Fed's two-day meeting. The Dow Jones industrial average was up 0.15 percent, at 19,786.67, the S&P 500 was down 0.03 percent, at 2,258.85 and the Nasdaq Composite was down 0.43 percent, at 5,420.84. Seven of the 11 major S&P sectors were lower, with the industrials index's 0.64 percent fall leading the decliners. Lockheed Martin was down 4.2 percent at $248.75 after Donald Trump tweeted that the company's F-35 program and costs were "out of control". Other defense stocks, such as General Dynamics, Raytheon, and Northrop Grumman , were down between 3.4-6.1 percent.

 

In Bond Markets  U.S. Treasury yields rose on Monday, with benchmark 10-year notes climbing to more than two-year peaks, after oil prices increased and as investors expected the Federal Reserve's first interest rate hike in a year. U.S. 10-year note prices were down 8/32, while the yield rose to 2.493 percent from 2.464 percent late on Friday. U.S. 30-year bonds were down 15/32. The yield was 3.179 percent after rising to 3.215 percent, the highest since July 2015.

 

 

European Equity Upgrades/Downgrades

  • POLYMETAL (POLY LN) DOWNGRADED TO SECTOR PERFORM FROM OUTPEFORM AT RBC
  • SKY (SKY LN) UPGRADED TO HOLD FROM SELL AT LIBERUM CAPITAL
  • PADDY POWER BETFAIR (PPB LN) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN SACHS
  • WILLIAM HILL (WMH LN) DOWNGRADED TO SELL FROM NEUTRAL AT GOLDMAN SACHS
  • OLD MUTUAL (OML LN) DOWNGADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS
  • POLYMETAL (POLY LN) DOWNGRADED TO SECTOR PERFORM FROM OUTPEFORM AT RBC
  • SKY (SKY LN) UPGRADED TO HOLD FROM SELL AT LIBERUM CAPITAL
  • PADDY POWER BETFAIR (PPB LN) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN SACHS
  • WILLIAM HILL (WMH LN) DOWNGRADED TO SELL FROM NEUTRAL AT GOLDMAN SACHS
  • OLD MUTUAL (OML LN) DOWNGADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS
  • BNP PARIBAS (BNP FP) DOWNGRADED TO HOLD FROM BUY AT BANKHAUS LAMPE
  • CAP GEMINI (CAP FP) UPGRADED TO OVERWEIGHT FROM NEUTRAL JPMORGAN
  • SCOR (SCR FP) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS
  • GEMALTO (GTO FP) UPGRADED TO BUY FROM SELL AT BERENBERG
  • GENERALI (G IM) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
  • ASM (ASM NA) INITIATED BUY AT DEUTSCHE BANKTEC
  • ABB (ABBN VX) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • AKER (AKER NO) INTIATED WITH A BUY AT GOLDMAN SACHS
  • ELECTROLUX (ELUXB SS) UPGRADED TO HOLD FROM SELL AT DNB MARKETS
  • NCC AB (NCCB SS) DOWNGRADED TO HOLD FROM BUY AT HSBC

 

 

 


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