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16 Dec 2016 18:32 GMT+0 - Closing Wrap

In European Equity Markets stocks rose on Thursday, helped by gains in global banks after the Federal Reserve raised U.S. interest rates, while growing corporate deal activity underpinned year-end optimism. The pan-European STOXX 600 index rose 0.9 percent, ending at its highest level since Jan. 5. The European banking index rose 2.5 percent, also ending at an 11-month high. Deutsche Bank, BNP Paribas, HSBC, Santander and Credit Suisse rose 1.5 to 5.3 percent after the Fed's move. Also helping financials, Italian banks rose 4.4 percent and were on course for a third straight week of gains. French utility EDF fell 12.7 percent, wiping about 2.5 billion euros from its market value, after warning of lower earnings in 2017.

 

In Currency Markets the U.S. dollar edged higher against a basket of major currencies on Friday, holding near 14-year highs touched after Wednesday's Federal Reserve meeting, with profit-taking halting the momentum of the greenback's rally. The euro was last flat against the dollar at $1.0410 after hitting a nearly 14-year low of $1.0364 Thursday, while the dollar was flat against the yen at 118.19 yen after hitting a roughly 10-1/2 month high of 118.66 yen Thursday. It gained 0.4 percent against the Canadian dollar to C$1.3382. Against the Swiss franc, the dollar was last down 0.04 percent at 1.0294 francs after touching 1.0344 francs on Thursday, its highest since August 2010. The dollar index was last at 103.140. 

 

In Commodities Markets  oil rose on Friday, edging closer to new 17-month highs, as producers showed signs of adhering to a global deal to reduce output. Brent futures rose 2 percent, to $55.09 a barrel. U.S. West Texas Intermediate crude rose 1.8 percent, to $51.81 per barrel. Spot gold was up 0.3 percent at $1,131.10 an ounce. The metal hit $1,122.35 on Thursday, its weakest since Feb. 2 and is down more than two percent so far this week. Silver gained 0.2 percent at $15.93 an ounce, after falling more than 5 percent on Thursday. Platinum rose 1.1 percent to $903.4 after falling to the lowest since early February in the previous session. Palladium was down 2.9 percent to $679.65 from an earlier $677.97, its lowest since the middle of November.

 

In US Equity Markets  the S&P 500 and the Nasdaq were little changed on Friday, while the Dow continued to march towards 20,000, a level it has never breached. The Dow Jones Industrial average was up 0.23 percent, at 19,897.18. The S&P 500 was up 0.04 percent, at 2,263.02. The Nasdaq Composite was up 0.08 percent, at 5,461.40. Eight of the 11 major S&P sectors were higher, with the real estate index's 0.66 percent rise leading the gainers. Oracle declined 2.5 percent after the business software maker's adjusted revenue missed analysts' estimates. Chipotle Mexican Grill rose 2.2 percent after the company, under pressure from activist investor Bill Ackman, appointed four more members to its board.

 

In Bond Markets  U.S. Treasury debt yields inched higher on Friday, continuing a trend that has been in place for several weeks, with investors consolidating some positions ahead of what is expected to be a quiet holiday period for economic data.  In mid-morning trading, 10-year Treasury prices were down 4/32, yielding 2.593 percent, up from Thursday's 2.578 percent. On the week, 10-year yields have gained nearly 13 basis points. U.S. 30-year bond prices were down 13/32, yielding 3.167 percent, up from 3.145 percent late on Thursday.

 

 

European Equity Upgrades/Downgrades

  • HANNOVER RE (HNR1 GY) DOWNGRADED TO HOLD FROM BUY AT SOCGEN
  • TDC (TDC DC) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY

 

 

 


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