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19 Dec 2016 18:15 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. Spain's Grifols rose 6.7 percent after saying it would buy U.S. Hologic Inc's assets in their blood-screening joint venture and refinance its net debt in the first quarter of next year.

 

In Currency Markets the yen jumped on Monday on safehaven bids following news the Russian ambassador to Turkey was gunned down in the Turkish capital, adding to buying of the Japanese currency to book profits on dollar's recent gains versus the yen. The yen was up 1.3 percent against the dollar at 116.67 yen after hitting 118.66 yen on Dec. 15 which was its weakest since Feb. 2.  The Japanese currency was up 1.2 percent versus the euro at 121.88 yen. The Turkish lira fell 0.7 percent at 3.526 lira per dollar. The dollar index was up 0.03 percent at 102.98. On Dec. 15, it reached 103.56 which was its highest since Dec 2002.

 

In Commodities Markets  oil prices were little changed on Monday, with little news to influence a market waiting to see whether U.S. production from shale fields will grow enough to offset planned output cuts by OPEC, Russia and other producers next year. Brent futures for February delivery were down 0.4 percent, at $54.97 a barrel. U.S. West Texas Intermediate crude for January rose 0.1 percent, to $51.96 per barrel on its last day as the front-month. Spot gold was up 0.5 percent at $1,139.43 an ounce. Silver fell 0.4 percent to $16.03 an ounce. Platinum fell 1 percent to $918.60 and palladium was down 1.8 percent at $680.22 an ounce, after falling to a one-month low on Friday.

 

In US Equity Markets  stocks opened with a slight upward bias on Monday, as Wall Street's recent uptrend appeared set to continue, even as investors found few reasons to keep pushing shares decisively higher with major indexes near records and ahead of the quiet holiday trading period. The Dow Jones Industrial Average rose less than 0.1 percent, to trade at 19,857.5. The S&P 500 rose 1.9 point to 2,259.8. The Nasdaq Composite Index rose 0.1 percent, to 5,441.3. Walt Disney was up 1.7 percent after "Rogue One: A Star Wars Story" hauled in an estimated $155 million in the U.S. and Canada at the box office over the weekend. Lennar Corp. reported an 11 percent jump in fourth-quarter profit, beating forecasts. Shares advanced 2.8%.

 

In Bond Markets U.S. Treasury yields eased from multi-year highs on Monday as investors evaluated how many times the U.S. Federal Reserve is likely to raise interest rates next year and covered some short positions ahead of year-end. Benchmark 10-year notes were last up 8/32 in price to yield 2.56 percent, down from 2.60 percent late on Friday. The yields rose as high as 2.64 percent on Thursday, the highest since September 2014.

 

 

European Equity Upgrades/Downgrades

  • CARNIVAL (CCL LN) DOWNGRADED TO HOLD FROM BUY AT BERENBERG
  • BAYER (BAYN GY) UPGRADED TO BUY FROM HOLD AT JEFFERIES
  • GRENKE (GLJ GY) UPGRADED TO BUY FROM HOLD AT BERENBERG
  • DRAX (DRX LN) UPGRADED TO BUY FROM HOLD AT SOCGEN
  • GECINA (GFC FP) DOWNGRADED TO SELL FROM NEUTRAL AT CITI
  • ICADE (ICAD FP) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
  • KLIEPIERRE (LI FP) DOWNGRADED TO SELL FROM NEUTRAL AT CITI
  • LEG IMMOBILIEN (LEG GY) UPGRADED TO BUY FROM NEUTRAL AT CITI
  • UNIBAIL-RODAMCO (UL FP) UPGRADED TO NEUTRAL FROM SELL AT CITI

 

 

 


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