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23 Dec 2016 07:33 GMT+0 - Opening Wrap

In Asian Equity Markets stocks retreated in subdued trade on Friday after Wall Street took a breather from its rise since the U.S. election, while the dollar hovered below the 14-year high set earlier this week. MSCI's broadest index of Asia-Pacific stocks outside Japan, fell 0.4 percent to a five-month low. China's CSI 300 index fell  0.7 percent, dragged lower by brokerage and insurance shares, on expectations regulators will tighten supervision over online insurance products. The index was on track to lose 1.1 percent for the week. Hong Kong's Hang Seng retreated 0.5 percent, and was poised for a similar weekly loss. Japan's Nikkei, closed for a holiday on Friday, edged up 0.1 percent for the week.

  

In Currency Markets the dollar was almost unchanged against the other major currencies on Friday, still hovering close to 14-year highs amid sustained optimism over the strength of the U.S. economy and as trading volumes were expected to remain thin ahead of the Christmas holiday. The dollar inched down 0.2 percent against the yen to 117.355, and was on track for a 0.55 percent loss for the week. The euro edged up 0.2 percent to $1.0453 on Friday, while sterling was little changed at $1.229, on track for a weekly slide of 1.6 percent. The muted investor sentiment weighed on the Australian dollar, which fell 0.1 percent to $0.7207, fractionally above a seven-month low touched Thursday and repeated Friday.

 

In Commodities Markets oil prices fell on Friday in thin Asian trade ahead of the Christmas and New Year holidays, eroding some of the gains in the previous session as traders took profits. Brent futures for February delivery lost 0.4 percent, to $54.85 a barrel after ending the previous session up 1.1 percent. U.S. West Texas Intermediate crude fell 0.5 percent, to $52.69 a barrel after settling up 0.9 percent in the previous session. Spot gold edged up 0.2 percent to $1,131.36 an ounce. Silver was mostly flat at $15.82. Platinum was steady at $903.49 and palladium fell 0.2 percent to $653.35. Platinum has lost over 2 percent, while palladium has lost over 6 percent so far this week.

 

In US Equity Markets  stocks fell on Thursday, weighed down by weakness in retailers, as investors stepped back from a recent rally fueled by optimism that President-elect Donald Trump will invigorate economic growth. The Dow finished 0.12 percent lower at 19,918.88 and the S&P 500 lost 0.19 percent to end at 2,260.96. The Nasdaq Composite fell  0.44 percent to 5,447.42. Apple fell 0.66 percent after Nokia said it had sued the iPhone maker for patent infringement. ConAgra rose 3.39 percent after the packaged foods maker's quarterly profit beat estimates. Red Hat lost 13.89 percent after the Linux software distributor's quarterly revenue missed estimates.

 

In Bond Markets U.S. Treasury yields rose on Thursday after data showed improving economic growth, and as investors prepared for new Treasury supply next week. Benchmark 10-year notes were last down 3/32 in price to yield 2.55 percent, after earlier rising as high as 2.58 percent, up from 2.54 percent late Wednesday. Data showed that the U.S. economy grew faster than initially thought in the third quarter, notching its best performance in two years, amid solid consumer spending and a jump in soybean exports.

 

 

Economic Calendar

  • 10:30 GMT+0 UK Current Account
  • 14:30 GMT+0 CAD GDP m/m


US Equity Earnings

  • Micron (MU) - Q1 EPS USD 0.32 vs. Exp. USD 0.28 and Q1 revenue USD 3.97bln vs. Exp. USD 3.95bln. Furthermore, they forecast Q2 EPS between USD 0.58-0.68 vs. Exp. USD 0.39 and Q2 revenue between USD 4.35bln-4.70bln vs. Exp. USD 3.91bln.
  • Rite Aid (RAD) - Q3 Adj. EPS USD 0.02 vs. Exp. USD 0.04 and Q3 revenue USD 8.1bln vs. Exp. USD 8.23bln.
  • ConAgra Brands (CAG) - Q2 Adj. EPS USD 0.49 vs. Exp. USD 0.45 and Q2 revenue USD 2.09bln vs. Exp. USD 2.11bln.
  • Bed Bath & Beyond (BBBY) - Q3 EPS USD 0.85 vs. Exp. USD 0.98 and Q3 revenue USD 2.955bln vs. Exp. USD 3.01bln.
  • Red Hat (RHT) - Q3 Adj. EPS USD 0.61 vs. Exp. USD 0.58 and Q3 revenue USD 615mln vs. Exp. USD 618.02mln.

 

US Equity Upgrades

  • AMETEK (AME) UPGRADED TO OUTPERFORM FROM NEUTRAL AT BAIRD
  • MAG SILVER (MAG) UPGRADED TO STRONG BUY FROM OUTPERFORM AT RAYMOND JAMES
  • MERUS (MRUS) UPGRADED TO BUY FROM NEUTRAL AT CITI
  • MICRON (MU) UPGRADED TO BUY FROM HOLD AT SUMMIT REDSTONE
  • MICRON (MU) UPGRADED TO BUY FROM UNDERPERFORM AT NEEDHAM
  • NATIONAL INSTRUMENTS (NATI) UPGRADED TO OUTPERFORM FROM NEUTRAL AT BAIRD
  • SOUTHERN COPPER (SCCO) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT ITAU BBA
  • SUCAMPO (SCMP) UPGRADED TO BUY FROM NEUTRAL AT MIZUHO
  • SUNOCO (SUN) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT FBR CAPITAL
 

US Equity Downgrades

  • ADVANCED ACCELERATOR (AAAP) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT JMP SECURITIES
  • BED BATH & BEYOND (BBBY) DOWNGRADED TO MARKET PERFORM FROM STRONG BUY AT RAYMOND JAMES
  • BLACK STONE MINERALS (BSM) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • BROWN FORMAN (BF/B) DOWNGRADED TO HOLD FROM BUY AT SUNTRUST
  • FINISH LINE (FINL) DOWNGRADED TO HOLD FROM BUY AT CANACCORD
  • FINISH LINE (FINL) DOWNGRADED TO NEUTRAL FROM BUY AT B. RILEY
  • FINISH LINE (FINL) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL
  • FINISH LINE (FINL) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT WEDBUSH
  • GREIF (GEF) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT BMO CAPITAL
  • INVENSENSE (INVN) DOWNGRADED TO HOLD FROM BUY AT LOOP CAPITAL
  • INVENSENSE (INVN) DOWNGRADED TO SECTOR WEIGHT FROM OVERWEIGHT AT PACIFIC CREST
  • KIRKLAND'S (KIRK) DOWNGRADED TO NEUTRAL FROM BUY AT B. RILEY
  • MEDIASET (MDIUY) DOWNGRADED TO HOLD FROM BUY AT BERENBERG
  • PRAXAIR (PX) DOWNGRADED TO UNDERPERFORM FROM OUTPERFORM AT CLSA
  • PROCTER & GAMBLE (PG) DOWNGRADED TO HOLD FROM BUY AT SUNTRUST
  • RED HAT (RHT) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • RED HAT (RHT) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BMO CAPITAL
  • SKY (SKYAY) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
  • STAGE STORES (SSI) DOWNGRADED TO SELL FROM NEUTRAL AT B. RILEY
  • SWIFT TRANSPORTATION (SWFT) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
  • ZUMIEZ (ZUMZ) DOWNGRADED TO NEUTRAL FROM BUY AT B. RILEY

 

US Equity Initiations

  • AKAMAI (AKAM) INITIATED WITH A BUY AT GUGGENHEIM
  • BRUNSWICK (BC) INITIATED WITH A BUY AT CL KING
  • CATABASIS PHARMACEUTICALS (CATB) INITIATED WITH A BUY AT H.C. WAINWRIGHT
  • COLUCID PHARMACEUTICALS (CLCD) INITIATED WITH A BUY AT BTIG
  • COLUMBIA PROPERTY (CXP) INITIATED WITH A HOLD AT SUNTRUST
  • CUBIC (CUB) INITIATED WITH A BUY AT DREXEL HAMILTON
  • EXA CORP. (EXA) ASSUMED WITH A BUY AT NEEDHAM
  • FLEXION (FLXN) INITIATED WITH A STRONG BUY AT RAYMOND JAMES
  • INTRA-CELLULAR (ITCI) INITIATED WITH A BUY AT BTIG
  • LAS VEGAS SANDS (LVS) INITIATED WITH A BUY AT AEGIS
  • LIMBACH HOLDING (LMB) INITIATED WITH A BUY AT DA DAVIDSON
  • MAMMOTH ENERGY (TUSK) INITIATED WITH AN OUTPERFORM AT RAYMOND JAMES
  • MELCO CROWN (MPEL) INITIATED WITH A BUY AT AEGIS
  • MICROSOFT (MSFT) INITIATED WITH AN OVERWEIGHT AT PIPER JAFFRAY
  • ORACLE (ORCL) INITIATED WITH AN OVERWEIGHT AT MUFG
  • PACIFIC PREMIER (PPBI) INITIATED WITH AN OVERWEIGHT AT STEPHENS
  • PDL BIOPHARMA (PDLI) RESUMED WITH AN OVERWEIGHT AT PIPER JAFFRAY
  • PEGASYSTEMS (PEGA) INITIATED WITH AN OVERWEIGHT AT MUFG
  • POWER INTEGRATIONS (POWI) INITIATED WITH A BUY AT DREXEL HAMILTON
  • RADWARE (RDWR) INITIATED WITH A BUY AT JEFFERIES
  • SAREPTA (SRPT) INITIATED WITH AN OVERWEIGHT AT JPMORGAN
  • TIER REIT (TIER) INITIATED WITH AN OUTPERFORM AT BMO CAPITAL
  • WESTERN NEW ENGLAND BANCORP (WNEB) INITIATED WITH AN OVERWEIGHT AT PIPER JAFFRAY
  • ZYNERBA (ZYNE) INITIATED WITH AN OVERWEIGHT AT CANTOR

 

 

 

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