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13 Dec 2016 18:43 GMT+0 - Closing Wrap

In European Equity Markets stocks rose on Tuesday, helped by a rally in Italy's biggest bank UniCredit on plans to bolster its balance sheet, while takeover speculation allowed Mediaset to make its best one-day gain ever.  The pan-European STOXX 600 index climbed to a new 11-month high to end up 1.1 percent. UniCredit rose 15.9 percent after unveiling plans to raise 13 billion euros in Italy's biggest-ever share issue to shore up its balance sheet and shield itself from a broader banking crisis. Mediaset rose 31.9 percent, the biggest gainer in Europe, after French media group Vivendi said it owned a 3 percent stake in the Italian broadcaster and planned to raise that to as much as 20 percent, fuelling expectations of a takeover bid.

 

In Currency Markets the U.S. dollar was steady against a basket of major currencies on Tuesday on uncertainty over whether the U.S. Federal Reserve would signal a slow or fast pace of interest rate increases at the end of a closely-watched policy meeting. The dollar was up 0.23 percent against the yen  at 115.29 yen after hitting a 10-month high of 116.12 yen on Monday. The euro was last flat against the dollar at $1.0635 after briefly touching a five-day high of $1.0653. The British pound changed hands at $1.2684, compared with $1.2678. The U.S. dollar index was last down 0.06 percent at 100.970. 

 

In Commodities Markets  oil prices rose on Tuesday, supported by strong demand in Asia and supply cuts by Abu Dhabi, Kuwait and Qatar as part of production curbs organized by OPEC and other exporters. U.S. West Texas Intermediate gained 20 cents to $55.03 a barrel, while International Brent crude was up 14 cents to $55.82. In its monthly oil market report, the IEA said revisions to its estimate of Chinese and Russian consumption had prompted it to raise its forecast for global oil market demand growth this year by 120,000 barrels per day to growth of 1.4 million bpd. Meanwhile, China's November crude output fell 9 percent from a year earlier to 3.915 million bpd, data showed on Tuesday. 

 

In US Equity Markets  stocks rose on Tuesday, with the Dow Jones Industrial average coming within striking distance of the 20,000 mark, as a post-election rally rolled on. The Dow Jones industrial average rose 0.36 percent, at 19,867.3, the S&P 500 was up 0.43 percent, at 2,266.87 and the Nasdaq Composite rose 0.99 percent, at 5,466.26.  Seven of the 11 major S&P sectors were higher, with the technology index's 1.29 percent jump leading the advancers. VeriFone Systems rose 8.7 percent after the payment card machine maker's quarterly results beat estimates. Inovalon Holdings lost 35.3 percent. The healthcare data analytics company's fourth-quarter revenue forecast came in below expectations. 

 

In Bond Markets U.S. Treasury yields fell on Tuesday, consolidating recent gains ahead of a widely-expected interest rate increase from the Federal Reserve. U.S. 10-year note prices were up 1/32, while the yield fell to 2.473 percent from 2.479 percent late on Monday. U.S. 30-year bonds were up 6/32. The yield was 3.152 percent, compared with 3.162 percent on Monday. U.S. two-year notes were flat to lower, yielding 1.161 percent.

 

 

European Equity Upgrades/Downgrades

  • GLENCORE (GLEN LN) UPGRADED TO BUY FROM HOLD AT SOCGEN
  • STANDARD LIFE (SL/ LN) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • EASYJET (EZJ LN) RESUMED WITH A SELL AT PANMURE GORDON
  • RYANAIR (RYA ID) INITAITED WITH A BUY AT PANMURE GORDON
  • METRO (MEO GY) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • TUI (TUI1 GY) INITIATED WITH A SELL AT PANMURE GORDON
  • WIRECARD (WDI GY) INITIATED WITH AN UNDERPERFORM AT MACQUARIE
  • SUEDZUCKER (SZU GY) UPGRADED TO BUY FROM HOLD AT BANKHAUS LAMPE
  • AXA (CS FP) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • INGENICO (ING FP) INITIATED WITH AN OUTPERFORM AT MACQUARIE
  • REXEL (RXL FP) UPGRADED TO OVERWEIGHT FROM EQUALWEIGHT AT BARCLAYS
  • UNILEVER (UNA NA) UPGRADED TO BUY FROM HOLD AT JEFFERIES
  • ADECCO (ADEN VX) UPGRADED TO BUY FROM NEUTRAL AT CITI
  • ABB (ABBN VX) DOWNGRADED TO UNDERPERFORM FROM HOLD AT JEFFERIES
  • RICHEMONT (CFR VX) UPGRADED TO HOLD FROM SELL AT BERENBERG
  • ASSA ABLOY (ASSAB SS) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
  • ASSAB ALLOY (ASSAB SS) UPGRADED TO HOLD FROM SELL AT SEB ENSKILDA
  • GRIFOLS (GRF SM) DOWNGRADED TO NEUTRAL FROM BUY AT UBS
  • LVMH (MC FP) UPGRADED TO NEUTRAL AT BOFAML

 

 


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