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In European Equity
Markets stocks rose on Thursday, helped by
gains in global banks following the U.S. Federal Reserve's interest
rate hike overnight, while growing corporate deal activity
continued to underpin year-end optimism. The
pan-European STOXX 600 was trading up 0.2 percent, inching back
towards an 11-month high scaled earlier this week. The
European banking index was up 1.5 percent, boosted by a 2.1 to 4
percent rise in lenders such as Deutsche Bank, BNP Paribas, Societe
Generale and Barclays following the Fed's move. French
utility EDF fell around 12 percent, wiping off about 2.5 billion
euros from the company's market value, after warning of lower
earnings in 2017.
In Currency Markets the U.S. dollar
rose to its highest level in 14 years against a basket of major
currencies on Thursday on anticipation of a more hawkish Federal
Reserve and a boost in U.S. economic growth under President-elect
Donald Trump. The dollar was last up 1.14 percent
against the yen at 118.35 yen after rising as much as 1.4 percent
to 118.66 yen, its highest level since early February. The euro was
down 1.08 percent at $1.0421 after falling as much as 1.3 percent
to $1.0396, its lowest since early January 2003. The
dollar hit a more than one-year high against the Swiss franc of
1.0324 francs. The dollar index jumped as much as 1.5
percent to a roughly 14-year high of
oil prices fell on Thursday as the dollar rallied in the wake
of a rise in U.S. interest rates, despite forecasts of a tighter
oil market in 2017 due to planned output cuts. Brent
futures for February delivery fell 0.6 percent, to $53.59 a barrel.
U.S. crude, meanwhile was down 1.2 percent, to $50.41 per
barrel. Spot gold hit a 10-1/2 month low of
$1,126.48 an ounce, and was down 1.3 percent at $1,129.47 an ounce.
U.S. gold futures for February delivery were $32.70, or 2.8
percent, lower at $1,131.00. Silver was down 4.4 percent at
$16.08 an ounce, having earlier hit its lowest since June at
$15.89, and platinum was 1.5 percent lower at $909.99. Palladium
was up 0.4 percent at $722.50.
In US Equity
stocks hovered near record highs on Thursday as bank stocks
rose, and investors viewed the Federal Reserve's interest rate
outlook as a sign of confidence in the economy. The
S&P 500 was up 0.64 percent, at 2,267.89.
The Nasdaq Composite was up 0.6 percent, at
5,469.37. All 11 major S&P sectors were higher, with
the financial index's 1.46 percent rise leading the
gainers. Mondelez was up 5.3 percent after
reports that Kraft Heinz may buy
the Cadbury chocolate maker. Kraft rose 1.1 percent.
Yahoo fell 5.2 percent after CNBC reported that Verizonis
weighing scrapping its deal with the company after it disclosed the
largest security breach in history.
U.S. Treasury yields rose broadly on Thursday, boosted by the
prospect of more interest rate increases by the Federal Reserve
next year, although those on long-dated bonds came off their highs
after fairly tame consumer inflation data for November.
Benchmark 10-year Treasury prices were down 12/32, yielding
2.567 percent, up 4 basis points from levels late on Wednesday.
U.S. 30-year bond yields were yielding 3.149 percent, up slightly
from the previous session. U.S. two-year notes yielded 1.2636
percent, up almost 3 basis points from Wednesday.
- ROYAL DUTCH SHELL (RDSA LN) DOWNGRADED TO SECTOR PERFORM FROM
SECTOR OUTPERFORM AT SCOTIA HOWARD
- MTU AERO ENGINES (MTX GY) UPGRADED TO OVERWEIGHT FROM NEUTRAL
- AGGREKO (AGK LN) UPGRADED TO BUY FROM HOLD AT DEUTSCHE
- DASSAULT AVIATION (AM FP) INITIATED WITH A SELL AT
- SOCGEN (GLE FP) UPGRADED TO BUY FROM NEUTRAL AT NATIXIS
- TELEFONICA (TEF SM) UPGRADED TO BUY FROM SELL AT DEUTSCHE