Please share this page with the world

14 Dec 2016 06:50 GMT+0 - Opening Wrap

In Asian Equity Markets Japan's Nikkei index ended little changed on Wednesday, with investors wary of taking fresh positions ahead of a closely watched monetary policy decision by the Federal Reserve. The Nikkei ended the day up 0.02 percent at 19.253.61, with the rise just enough for the index to mark its seventh straight day of gains. The broader Topix fell 0.1 percent to 1,538.69 and the JPX-Nikkei Index 400 lost 0.1 percent to 13,772.99. Australia led the going early with a gain of 0.8 percent, though MSCI's broadest index of Asia-Pacific shares outside Japan could only manage a 0.1 percent rise. The Shanghai Composite edged up just in the green by 0.02 percent, while Hong Kong's Hang Seng Index rose 0.58 percent. 

 

In Currency Markets the dollar took a breather on Wednesday as investors waited to see if the U.S. Federal Reserve will signal any acceleration in the pace of future rate increases to deal with an expected ramp-up in fiscal spending under President-elect Donald Trump. The euro  inched higher to $1.0637, pulling further away from Monday's one-week low of $1.0525. Against the yen, the dollar was slightly higher at 115.25 yen. The Australian dollar traded at $0.7489, having hit a near one-month high of $0.7524 on Tuesday. The Canadian dollar stood at C$1.3133 per U.S. dollar. The biggest winner in the past few sessions from rallying oil prices was the Russian rouble, which rose 5.4 percent over the past week against the dollar to hit a 16-1/2-month high.

 

In Commodities Markets oil prices fell on Wednesday following a reported rise in U.S. crude inventories and an estimate that OPEC may have produced more crude in November than previously thought, potentially undermining a planned output cut. U.S. West Texas Intermediate crude oil futures were down 1.3 percent, to $52.29 a barrel. International Brent crude futures were down 1.2 percent, at $55.03 per barrel. Gold prices edged up in Asia ahead of a widely expected move by the Federal Reserve to hike interest rates on Wednesday, marking the fist such increase in a year. Gold futures for February delivery rose 0.24 percent to $1.161.80 a troy ounce and silver futures edged up 0.12 percent to $16.998 a troy ounce. 

 

In US Equity Markets stocks racked up new all-time highs on Tuesday and the Dow Jones industrial average ended fewer than 100 points away from the 20,000 mark as a post-election rally showed no signs of fatigue. The Dow Jones industrial average rose 0.58 percent to end at 19,911.21 points and the S&P 500  gained 0.65 percent to 2,271.72. The Nasdaq Composite added 0.95 percent to 5,463.83. Nine of the 11 major S&P sectors rose, with the technology index's climbing 1.23 percent. Apple added 1.67 percent, while IBM rose 1.69 percent.  Inovalon Holdings fell as much as 37.7 percent after the healthcare data analytics company's fourth-quarter revenue forecast came in below expectations.

 

In Bond Markets superlong Japanese government bond yields fell on Wednesday as prices rose after the Bank of Japan increased buying in that zone as part of its regular buying operations.  The 30-year yield, which touched its highest levels since mid-March in the previous session, shed 8 basis points (bps) to 0.725 percent, down from an earlier session high of 0.785 percent. The benchmark 10-year yield fell 2 bps to 0.060 percent, while 10-year JGB futures added 0.22 point to 150.04. 

 

 

Economic Calendar

  • 10:30 GMT+0 UK Average Earnings Index 3m/y
  • 10:30 GMT+0 UK Claimant Count Change
  • 13:15 GMT+0 UK BOE Gov Carney Speaks
  • 14:30 GMT+0 US Core Retail Sales m/m
  • 14:30 GMT+0 US PPI m/m
  • 14:30 GMT+0 US Retail Sales m/m
  • 16:30 GMT+0 US Crude Oil Inventories
  • 20:00 GMT+0 US FOMC Economic Projections
  • 20:00 GMT+0 US FOMC Statement
  • 20:00 GMT+0 US Federal Funds Rate
  • 20:30 GMT+0 US FOMC Press Conference

 

US Equity Upgrades

  • ACHAOGEN (AKAO) UPGRADED TO BUY FROM HOLD AT NEEDHAM
  • ALLEGIANCE BANCSHARES (ABTX) UPGRADED TO OUTPERFORM FROM NEUTRAL AT BAIRD
  • BANCO DE CHILE (BCH) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
  • BANCOLOMBIA (CIB) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • BUENAVENTURA (BVN) UPGRADED TO BUY FROM HOLD AT HSBC
  • CAMDEN PROPERTY (CPT) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT BMO CAPITAL
  • CBS (CBS) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
  • CELANESE (CE) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
  • CENTENE (CNC) UPGRADED TO NEUTRAL FROM SELL AT GOLDMAN
  • EMERSON (EMR) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT BUCKINGHAM
  • ENERPLUS (ERF) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT SCOTIABANK
  • EQUITY RESIDENTIAL (EQR) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT MORGAN STANLEY
  • FEDERAL REALTY (FRT) UPGRADED TO BUY FROM NEUTRAL AT CITI
  • HCP (HCP) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT BMO CAPITAL
  • HEALTHCARE REALTY TRUST (HR) UPGRADED TO OUTPERFORM AT WELLS FARGO
  • LADDER CAPITAL (LADR) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE
  • LIBERTY PROPERTY (LPT) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
  • MAA (MAA) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
  • MOLINA HEALTHCARE (MOH) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN
  • OPHTHOTECH (OPHT) UPGRADED TO NEUTRAL FROM SELL AT GOLDMAN
  • REALTY INCOME (O) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • SEAWORLD (SEAS) UPGRADED TO BUY FROM NEUTRAL AT JANNEY CAPITAL
  • UNILEVER (UN) UPGRADED TO BUY FROM HOLD AT JEFFERIES

 

US Equity Downgrades

  • ABB (ABB) DOWNGRADED TO UNDERPERFORM FROM HOLD AT JEFFERIES
  • ACADIA REALTY TRUST (AKR) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
  • AGCO (AGCO) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
  • ALEXION (ALXN) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
  • ALLSCRIPTS (MDRX) DOWNGRADED TO UNDERWEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
  • ARBUTUS BIOPHARMA (ABUS) DOWNGRADED TO NEUTRAL FROM BUY AT CHARDAN
  • BEMIS (BMS) DOWNGRADED TO UNDERPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
  • BRIXMOR (BRX) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
  • BUFFALO WILD WINGS (BWLD) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BMO CAPITAL
  • CALERES (CAL) DOWNGRADED TO NEUTRAL FROM BUY AT CL KING
  • CBL & ASSOCIATES (CBL) DOWNGRADED TO SELL FROM NEUTRAL AT CITI
  • CERNER (CERN) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • CHART INDUSTRIES (GTLS) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
  • COCA-COLA (KO) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • CYS INVESTMENTS (CYS) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT KEEFE BRUYETTE
  • DAVITA (DVA) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
  • DDR CORP. (DDR) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
  • DDR CORP. (DDR) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • DOUGLAS EMMETT (DEI) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
  • DUKE REALTY (DEI) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
  • EASTGROUP PROPERTIES (EGP) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
  • ENCORE CAPITAL (ECPG) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
  • EXTRA SPACE STORAGE (EXR) DOWNGRADED TO UNDERWEIGHT AT MORGAN STANLEY
  • FIRST BANK (FRBA) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
  • GAMING AND LEISURE PROPERTIES (GLPI) DOWNGRADED TO EQUAL WEIGHT AT MORGAN STANLEY
  • GNC HOLDINGS (GNC) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
  • GRIFOLS (GRFS) DOWNGRADED TO NEUTRAL FROM BUY AT UBS
  • INOVALON (INOV) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
  • JACOBS ENGINEERING (JEC) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
  • KITE REALTY GROUP (KRG) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
  • LASALLE HOTEL (LHO) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
  • LIONBRIDGE (LIOX) DOWNGRADED TO NEUTRAL FROM BUY AT B. RILEY
  • LITTELFUSE (LFUS) DOWNGRADED TO NEUTRAL FROM BUY AT LONGBOW
  • MAIN STREET (MAIN) DOWNGRADED TO SELL FROM NEUTRAL AT NATIONAL SECURITIES
  • MARATHON OIL (MRO) DOWNGRADED TO NEUTRAL FROM BUY AT UBS
  • MEDICAL PROPERTIES (MPW) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT WELLS FARGO
  • MEDNAX (MD) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
  • ONEOK (OKE) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS
  • OPHTHOTECH (OPHT) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
  • OPHTHOTECH (OPHT) DOWNGRADED TO HOLD FROM BUY AT GABELLI
  • PARAMOUNT GROUP (PGRE) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
  • PPG INDUSTRIES (PPG) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC CAPITAL
  • PROCTER & GAMBLE (PG) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • PS BUSINESS PARKS (PSB) DOWNGRADED TO SELL FROM NEUTRAL AT CITI
  • SENIOR HOUSING (SNH) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT WELLS FARGO
  • SKF AB (SKFRY) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
  • STANLEY BLACK & DECKER (SWK) DOWNGRADED TO OUTPERFORM FROM BUY AT CLSA
  • STEWART (STC) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE
  • STORE CAPITAL (STOR) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
  • TANGER FACTORY (SKT) DOWNGRADED TO SELL FROM NEUTRAL AT CITI
  • TEAMHEALTH (TMH) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
  • UDR, INC. (UDR) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • UNIT CORP. (UNT) DOWNGRADED TO REDUCE FROM HOLD AT KLR GROUP
  • VIACOM (VIAB) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT WEDBUSH
  • VIACOM (VIAB) DOWNGRADED TO UNDERPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
  • WALTER INVESTMENT (WAC) DOWNGRADED TO UNDERPERFORM AT KEEFE BRUYETTE
  • WELLCARE (WCG) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN
  • WELLTOWER (HCN) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
  • XENIA (XHR) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO

 

US Equity Initiations

  • ACCELERON (XLRN) INITIATED WITH AN OVERWEIGHT AT OPPENHEIMER
  • ALLISON TRANSMISSION (ALSN) INITIATED WITH A NEUTRAL AT MACQUARIE
  • AMGEN (AMGN) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER
  • AXA INITIATED (AXAHY) WITH AN OUTPERFORM AT CREDIT SUISSE
  • CINEMARK (CNK) ASSUMED WITH AN OVERWEIGHT AT JPMORGAN
  • COGENT (CCOI) INITIATED WITH A BUY AT SUNTRUST
  • COMMUNICATIONS SALES & LEASING (CSAL) INITIATED WITH A BUY AT SUNTRUST
  • CORE LABORATORIES (CLB) INITIATED WITH A NEUTRAL AT UBS
  • FEDEX (FDX) INITIATED WITH AN OVERWEIGHT AT JPMORGAN
  • GTT COMMUNICATIONS (GTT) INITIATED WITH A BUY AT SUNTRUST
  • HEALTHEQUITY (HQY) INITIATED WITH A BUY AT CHARDAN
  • QUINTILESIMS (Q) INITIATED WITH A NEUTRAL AT MIZUHO
  • REGAL ENTERTAINMENT (RGC) ASSUMED WITH A NEUTRAL AT JPMORGAN
  • SMART SAND (SND) INITIATED WITH A BUY AT JEFFERIES
  • SUPERIOR ENERGY (SPN) INITIATED WITH A BUY AT GABELLI

 

 

 

Trader Development

Find out more