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13 Dec 2016 07:02 GMT+0 - Opening Wrap

In Asian Equity Markets stocks were mixed, with China extending earlier declines on Tuesday despite better than expected retail sales and industrial data as they await a widely expected Federal Reserve rate hike this week. The Nikkei fell 0.1 percent to 19,134.73 in mid-morning trade. The broader Topix was flat at 1,531.34 and the JPX-Nikkei Index 400 was also steady at 13,708.36. Exporters were mixed, with Honda Motor Co shedding 0.5 percent, Nissan Motor Co adding 0.2 percent and Panasonic Corp falling 0.3 percent. MSCI's broadest index of Asia-Pacific stocks outside Japan edged down 0.1 percent. The Shanghai Composite fell 0.73 percent and Shenzhen eased 0.57 percent. The Australian index, S&P/ASX200, fell 0.33 percent.

 

In Currency Markets the dollar steadied against the yen and euro on Tuesday as a rise in Treasury yields was tempered and as the market braced for the outcome of the Federal Reserve's policy meeting starting later in the day. The euro was little changed at $1.0629. The common currency had gained 0.7 percent overnight, helped by higher German bund yields and on relief as Rome was seen ready bail out Italian bank Monte dei Paschi di Siena. The dollar was nearly flat at 115.140 yen. The Canadian dollar was little changed at C$1.3124 per dollar. The Australian dollar was steady at $0.7501 after adding 0.6 percent the previous day. The New Zealand dollar was also flat, at $0.7196 following a gain of 0.7 percent on Monday.

 

In Commodities Markets oil prices were stable on Tuesday, buoyed by rising demand in Asia and as signs of a crude production cut organized by OPEC and other exporters materialized, tightening a market that has been grappling with years of oversupply. International Brent crude was trading at $55.67 per barrel, virtually unchanged from its last settlement. U.S. West Texas Intermediate crude was down 10 cents at $52.73 a barrel, with U.S. producers not participating in production cuts. Gold for February deliver fell 0.06 percent to $1,165.10 a troy ounce. Silver inched up 0.02 percent to $17.190 a troy ounce, while copper gained 0.46 percent to $2,617 a pound.

 

In US Equity Markets the S&P 500 and Nasdaq Composite fell on Monday after six sessions of gains, weighed by tech sector stocks, while a rally in energy shares petered out as crude oil gains withered. The S&P 500 lost 0.11 percent, to 2,256.96 and the Nasdaq Composite fell 0.59 percent, to 5,412.54. The industrials sector was down 0.37 percent, dragged down by defense stocks. Regeneron gained 3.8 percent after data on a competing drug combination from Novartis and Opthotech did not meet its main goal. Ophthotech lost 86.4 percent.  Lockheed Martin declined 2.5 percent, bouncing back from a session low of $245.50, after U.S. President-elect Donald Trump tweeted that the company's F-35 program and costs were "out of control."

 

In Bond Markets Japanese government bond prices fell on Tuesday as the market absorbed a fresh supply of five-year debt. The benchmark 10-year yield was up half a basis point at 0.075 percent, not far from a 10-month peak of 0.080 percent marked the previous day when it accompanied a rise in U.S. Treasury yields. The five-year yield was up a basis point at minus 0.075 percent. The 20-year yield was down 0.5 basis point at 0.630 percent after briefly touching a 10-month high of 0.650 percent.

 

 

Economic Calendar

  • 10:30 GMT+0 UK CPI y/y

 

US Equity Upgrades

  • 8X8, INC. (EGHT) UPGRADED TO OUTPERFORM FROM NEUTRAL AT BAIRD
  • ABB (ABB) UPGRADED TO OUTPERFORM FROM NEUTRAL AT BAIRD
  • ABB (ABB) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • AEGON (AEG) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT BARCLAYS
  • AIG (AIG) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
  • AMD (AMD) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
  • AT&T (T) UPGRADED TO OUTPERFORM FROM NEUTRAL AT BAIRD
  • BROWN & BROWN (BRO) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT BMO CAPITAL
  • C.R. BARD (BCR) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
  • CONOCOPHILLIPS (COP) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT COWEN
  • COOPER COMPANIES (COO) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
  • CORECIVIC (CXW) UPGRADED TO BUY FROM HOLD AT CANACCORD
  • FIRSTSERVICE (FSV) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT RAYMOND JAMES
  • FMC CORPORATION (FMC) UPGRADED TO CONVICTION BUY FROM NEUTRAL AT GOLDMAN
  • HANESBRANDS (HBI) UPGRADED TO BUY FROM NEUTRAL AT CL KING
  • HOLOGIC (HOLX) UPGRADED TO CONVICTION BUY FROM BUY AT GOLDMAN
  • KLOECKNER (KLKNF) UPGRADED TO HOLD FROM UNDERPERFORM AT JEFFERIES
  • LULULEMON (LULU) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT FBR CAPITAL
  • MAGIC SOFTWARE (MGIC) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK
  • NITTO DENKO (NDEKY) UPGRADED TO HOLD FROM UNDERPERFORM AT JEFFERIES
  • NVR (NVR) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
  • PIONEER ENERGY (PES) UPGRADED TO BUY FROM HOLD AT WUNDERLICH
  • QUEST DIAGNOSTICS (DGX) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN
  • REGENCY CENTERS (REG) UPGRADED TO BUY FROM HOLD AT ARGUS
  • REGENERON (REGN) UPGRADED TO NEUTRAL FROM SELL AT CHARDAN
  • RINGCENTRAL (RNG) UPGRADED TO OUTPERFORM FROM NEUTRAL AT BAIRD
  • RWE AG (RWEOY) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
  • SKY (SKYAY) UPGRADED TO HOLD FROM SELL AT BERENBERG
  • TAHOE RESOURCES (TAHO) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
  • TC PIPELINES (TCP) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
  • TESORO (TSO) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
  • TRAVELERS (TRV) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
  • UBS (UBS) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT JPMORGAN
  • UNITED RENTALS (URI) UPGRADED TO NEUTRAL FROM SELL AT GOLDMAN
  • W.R. GRACE (GRA) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN
  • WEB.COM (WEB) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
  • YAMANA GOLD (AUY) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL

 

US Equity Downgrades

  • 21ST CENTURY FOX (FOXA) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT TELSEY
  • 21ST CENTURY FOX (FOXA) DOWNGRADED TO NEUTRAL FROM BUY AT MOFFETTNATHANSON
  • ALLEGIANT TRAVEL (ALGT) DOWNGRADED TO IN-LINE FROM OUTPERFORM AT IMPERIAL CAPITAL
  • ALLIANZ (AZSEY) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
  • CADENCE DESIGN (CDNS) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JPMORGAN
  • CERECOR (CERC) DOWNGRADED TO NEUTRAL FROM BUY AT RODMAN & RENSHAW
  • CF INDUSTRIES (CF) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS
  • CHEMOURS (CC) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN
  • COMMERCIAL METALS (CMC) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
  • CVS HEALTH (CVS) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
  • DEPOMED (DEPO) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT PIPER JAFFRAY
  • EOG RESOURCES (EOG) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT ATLANTIC EQUITIES
  • EZCORP (EZPW) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
  • FINISH LINE (FINL) DOWNGRADED TO HOLD FROM BUY AT BREAN CAPITAL
  • FLOWSERVE (FLS) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT BAIRD
  • GOLD FIELDS (GFI) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC CAPITAL
  • H.B. FULLER (FUL) DOWNGRADED TO NEUTRAL FROM ACCUMULATE AT SEAPORT GLOBAL
  • HUNTSMAN (HUN) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN
  • INVESTORS REAL ESTATE (IRET) DOWNGRADED TO NEUTRAL FROM BUY AT JANNEY CAPITAL
  • KITE REALTY GROUP (KRG) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • MEDLEY CAPITAL (MCC) DOWNGRADED TO NEUTRAL FROM BUY AT JANNEY CAPITAL
  • MOSAIC (MOS) DOWNGRADED TO UNDERPERFORM FROM SECTOR PERFORM AT SCOTIABANK
  • MUNICH RE (MURGY) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT CREDIT SUISSE
  • NOBILIS HEALTH (HLTH) DOWNGRADED TO HOLD FROM BUY AT CRAIGHALLUM
  • OPHTHOTECH (OPHT) DOWNGRADED TO NEUTRAL FROM BUY AT CHARDAN
  • PENNSYLVANIA REIT (PEI) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • PHILIPS (PHG) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
  • SCOR (SCRYY) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS
  • SEATTLE GENETICS (SGEN) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
  • SKY (SKYAY) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT EXANE BNP PARIBAS
  • SYNAPTICS (SYNA) DOWNGRADED TO UNDERPERFORM FROM PERFORM AT OPPENHEIMER
  • THERMO FISHER (TMO) DOWNGRADED TO BUY FROM CONVICTION BUY AT GOLDMAN
  • TORO COMPANY (TTC) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT LONGBOW
  • U.S. SILICA (SLCA) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT DA DAVIDSON
  • UNION BANKSHARES (UBSH) DOWNGRADED TO OUTPERFORM FROM STRONG BUY AT RAYMOND JAMES
  • WEBMD (WBMD) DOWNGRADED TO OUTPERFORM FROM STRONG BUY AT RAYMOND JAMES
  • WORTHINGTON (WOR) DOWNGRADED TO UNDERPERFORM FROM HOLD AT JEFFERIES
 

US Equity Initiations

  • AIRGAIN (AIRG) INITIATED WITH AN OUTPERFORM AT COWEN
  • DICERNA (DRNA) INITIATED WITH A BUY AT H.C. WAINWRIGHT
  • HOEGH LNG (HMLP) INITIATED WITH A BUY AT STIFEL
  • INTEGRA LIFESCIENCES (IART) INITIATED WITH A BUY AT UBS
  • MIMEDX (MDXG) INITIATED WITH A SELL AT UBS
  • RITTER PHARMACEUTICALS (RTTR) INITIATED WITH A BUY AT ROTH CAPITAL
  • ROKA BIOSCIENCE (ROKA) INITIATED WITH A BUY AT ROTH CAPITAL

 

 

  

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