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15 Dec 2016 07:00 GMT+0 - Opening Wrap

In Asian Equity Markets Japan's Nikkei index edged down in choppy trade just before the lunchbreak on Thursday as investors took profits from the seven-day rally after pricing in the U.S. Federal Reserve's decision to raise rates for the first time in a year. The Nikkei fell 0.2 percent to 19,225.24 at the midday break after rising as high as 19,436.90 in morning trade. The JPX-Nikkei Index 400 was also flat at 13,774.68 and the Topix was flat at 1,538.99 by midday.  MSCI's broadest index of Asia-Pacific stocks outside Japan lost 1.2 percent. The Shanghai Composite fell 0.29 percent, while the Australian index, S&P/ASX 200, eased 0.81 percent. 

 

In Currency Markets the dollar rose to a 14-year peak against a basket of major currencies on Thursday after the Federal Reserve boosted the number of projected interest rate hikes for 2017, rejuvenating the month-long Trump rally and knocking emerging market currencies. The dollar index extended its overnight rally and was up 0.5 percent at 102.270.  The euro was down 0.2 percent at $1.0512 after sliding to $1.0468. The greenback set a 10-month high of 117.860 yen early on Thursday and was last up 0.3 percent at 117.390. The Australian dollar was up 0.3 percent at $0.7426, while the New Zealand dollar touched a 10-day low of $0.7090. Sterling was 0.1 percent lower at $1.2553 after hitting a two-week low of $1.2515.

  

In Commodities Markets oil prices stabilized on Thursday as a tighter market looms in 2017 due to planned output cuts led by OPEC and Russia, after sharp declines earlier following Wednesday's U.S. interest rate increase that drove investors out of commodities. International Brent crude oil futures were trading at $54.02 a barrel, up 12 cents from their last close. U.S. WTI crude oil futures were at $51.02 per barrel, virtually flat with their last settlement. Data from the U.S. EIA showed that commercial crude inventories last week declined by 2.56 million barrels to 483.19 million barrels. Gold fell to its lowest in more than 10 months around $1,135.1 an ounce.

 

In US Equity Markets  stocks fell the most in two months on Wednesday after the Federal Reserve raised interest rates by a quarter point and signaled hikes could come next year at a faster pace than some expected. The Fed's decision to raise rates comes as President-elect Donald Trump, who will be sworn in next month, is seen cutting taxes and increasing spending on infrastructure. The Dow Jones industrial average fell 0.6 percent, to 19,792.53, the S&P 500 lost 0.81 percent, to 2,253.28 and the Nasdaq Composite lost 0.5 percent, to 5,436.67. Energy stocks weighed the most on the S&P 500 after a sharp fall in U.S. crude oil prices.  Exxon Mobil declined 2.2 percent and was the largest drag on the S&P 500.

 

In Bond Markets U.S. Treasury yields rose on Wednesday, with those on two-year notes climbing to their highest in more than seven years after the Federal Reserve raised interest rates for the first time in a year and flagged more rate increases in 2017. U.S. two-year Treasury notes were last down 5/32 in price to yield 1.263 percent, an increase of 9 basis points from late on Tuesday. The three-year note fell 10/32 to yield 1.578 percent, a gain of 11 basis points. The five-year note fell 18/32 to yield 2.032 percent, up 12 basis points. U.S. 10-year Treasury notes lost 21/32 to yield 2.559 percent, 8 basis points higher than on Tuesday.

 

 

Economic Calendar

  • 09:30 GMT+0 CHF Libor Rate
  • 09:30 GMT+0 CHF SNB Monetary Policy Assessment
  • 09:30 GMT+0 CHF SNB Press Conference
  • 10:30 GMT+0 GBP Retail Sales m/m
  • 13:00 GMT+0 GBP MPC Official Bank Rate Votes
  • 13:00 GMT+0 GBP Monetary Policy Summary
  • 13:00 GMT+0 GBP Official Bank Rate
  • 14:30 GMT+0 CAD Manufacturing Sales m/m
  • 14:30 GMT+0 US CPI m/m
  • 14:30 GMT+0 US Core CPI m/m
  • 14:30 GMT+0 US Philly Fed Manufacturing Index
  • 14:30 GMT+0 US Unemployment Claims
  • 17:15 GMT+0 US BOC Gov Poloz Speaks

 

US Equity Upgrades

  • 21ST CENTURY FOX (FOXA) UPGRADED TO BUY FROM HOLD AT BREAN CAPITAL
  • AKAMAI (AKAM) UPGRADED TO OUTPERFORM FROM PERFORM AT OPPENHEIMER
  • AUTOHOME (ATHM) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK
  • BANK OF IRELAND (IRE) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK
  • DEVRY (DV) UPGRADED TO OVERWEIGHT FROM EQUAL-WEIGHT AT FIRST ANALYSIS
  • F5 NETWORKS (FFIV) UPGRADED TO BUY FROM NEUTRAL AT CITI
  • HERITAGE OAKS (HEOP) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE
  • KROGER (KR) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT PIPER JAFFRAY
  • MARATHON OIL (MRO) UPGRADED TO BUY FROM HOLD AT ARGUS
  • NISOURCE (NI) UPGRADED TO BUY FROM NEUTRAL AT CITI
  • NVIDIA (NVDA) UPGRADED TO BUY FROM HOLD AT EVERCORE ISI
  • PRAXAIR (PX) UPGRADED TO HOLD FROM SELL AT VERTICAL RESEARCH
  • RED ROBIN (RRGB) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT BOFA/MERRILL
  • SAGE THERAPEUTICS (SAGE) UPGRADED TO STRONG BUY FROM OUTPERFORM AT RAYMOND JAMES
  • SEAWORLD (SEAS) UPGRADED TO OUTPERFORM FROM NEUTRAL AT MACQUARIE
  • UNICREDIT (UNCFF) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
  • VECTREN (VVC) UPGRADED TO BUY FROM NEUTRAL AT CITI

 

US Equity Downgrades

  • ACCURAY (ARAY) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
  • AIRGAIN (AIRG) DOWNGRADED TO HOLD FROM BUY AT WUNDERLICH
  • BRUKER (BRKR) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JPMORGAN
  • CONTINENTAL AG (CTTAY) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • FARMLAND PARTNERS (FPI) DOWNGRADED TO HOLD FROM BUY AT WUNDERLICH
  • FIRST NBC BANK (FNBC) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT FBR CAPITAL
  • ICF INTERNATIONAL (ICFI) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WILLIAM BLAIR
  • KAISER ALUMINUM (KALU) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT MACQUARIE
  • LIBERTY VENTURES (LVNTA) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
  • ONE LIBERTY PROPERTIES (OLP) DOWNGRADED TO HOLD FROM BUY AT WUNDERLICH
  • PROTEON THERAPEUTICS (PRTO) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • PROTEON THERAPEUTICS (PRTO) DOWNGRADED TO MARKET PERFORM AT JMP SECURITIES
  • PROTEON THERAPEUTICS (PRTO) DOWNGRADED TO MARKET PERFORM AT RAYMOND JAMES
  • QUALCOMM (QCOM) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
  • UNIVERSAL HEALTH (UHS) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES

 

US Equity Initiations

  • ADVANCE AUTO PARTS (AAP) INITIATED WITH AN OVERWEIGHT AT ATLANTIC EQUITIES
  • BLACKHAWK (HAWK) INITIATED WITH A BUY AT CRAIGHALLUM
  • CRESTWOOD EQUITY (CEQP) INITIATED WITH A BUY AT GOLDMAN
  • ENSIGN ENERGY (ESVIF) INITIATED WITH A BUY AT CITI
  • GREENHILL & CO. (GHL) INITIATED WITH AN UNDERPERFORM AT BOFA/MERRILL
  • HOULIHAN LOKEY (HLI) COVERAGE TRANSFERRED WITH A BUY AT BOFA/MERRILL
  • LAZARD (LAZ) INITIATED WITH AN UNDERPERFORM AT BOFA/MERRILL
  • MOELIS (MC) INITIATED WITH A BUY AT BOFA/MERRILL
  • ONEMAIN HOLDINGS (OMF) INITIATED WITH A BUY AT DEUTSCHE BANK
  • RLJ LODGING TRUST (RLJ) INITIATED WITH A BUY AT NOMURA
  • XENIA HOTELS & RESORTS (XHR) INITIATED WITH A BUY AT NOMURA
  • XILINX (XLNX) INITIATED WITH A BUY AT EVERCORE ISI
  • YY (YY) RESUMED WITH A BUY AT DEUTSCHE BANK

 

 

 

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