Please share this page with the world

04 Jan 2017 18:31 GMT+0 - Closing Wrap

In European Equity Markets stocks edged down from a one-year high on Wednesday, with retailers in focus after standout faller Next cut its profit guidance and cautioned on future trade. The pan-European STOXX 600 closed 0.1 percent lower, pulling back from its highest level since December 2015, reached in the previous session. The index was dragged down by a 14.4 percent fall in shares of UK fashion retailer Next. Next's warning put pressure on other high street retailers with UK exposure. Marks & Spencer lost 6.1 percent and Primark-owner Associated British Foods fell 3.7 percent. In financials, Credit Suisse rose 3.5 percent following a positive sector note by Barclays. European banks rose 0.6 percent, the top sectoral riser.

 

In Currency Markets the dollar fell against the euro and yen on Wednesday, backing off a 14-year high against a basket of currencies with investors cautious about increasing bets on the greenback without fresh clues on the U.S. economy and the timing of interest rate increases.  The euro climbed 0.7 percent to $1.0475, boosted by data showing euro zone prices rose more quickly than expected in December and surveys suggesting business growth reached its highest in more than five years. The dollar fell 0.5 percent against the yen to 117.23 yen. The Mexican peso hit its lowest level on record against the greenback, falling to 21.404 pesos per dollar. The dollar index was down 0.58 percent to 102.61, having hit a peak of 103.82 on Tuesday.

  

In Commodities Markets oil prices ticked higher on Wednesday on expectations that U.S. crude inventories have fell and on signs that the world's top oil exporters will stick to agreed output cuts that took effect this week. Global benchmark Brent crude futures rose 28 cents to $55.75 a barrel, a 0.5 percent gain. Eastern. U.S. WTI crude futures gained 0.5 percent, at $52.58 a barrel. Spot gold climbed to its highest since Dec. 9 at $1,167.83 an ounce and was last up 0.5 percent at $1,165.22. Silver was up 1 percent at $16.41 an ounce. Platinum rose to four-week highs of $950.10 an ounce, extending a 4 percent increase in the previous session. Palladium gained 4 percent to $736.90 an ounce, having climbed 4.5 percent on Tuesday.

 

In US Equity Markets stocks  extended its gains into the second trading day of the new year, supported by consumer discretionary stocks, as investors awaited minutes of the Federal Reserve's December meeting where it raised interest rates. The Dow Jones industrial average was up 0.1 percent, at 19,901.81, the S&P 500 was up 0.37 percent, at 2,266.2 and the Nasdaq Composite index was up 0.55 percent, at 5,458.81. The S&P 500 consumer discretionary sector rose 1.1 percent, mainly due to gains in automakers. Both General Motors and Ford rose more than 4 percent after posting positive U.S. sales in December. Comcast rose 1.1 percent after Macquarie raised its price target.

 

In Bond Markets  treasury debt yields edged higher on Wednesday for a second straight day in quiet trading as they continued to benefit from increased market appetite for risk with the rise in stocks and oil prices as well as an improving global economic environment.  In mid-morning trading, the U.S. 10-year note was down 1/32 in price to yield 2.457 percent, compared with 2.454 percent late on Tuesday. U.S. 30-year bond prices were down 2/32, yielding 3.053 percent, up from Tuesday's 3.05 percent. U.S. two-year note prices were flat, yielding 1.234 percent , compared with 1.226 percent on Tuesday.

 

 

European Equity Upgrades/Downgrades

  • SHELL (RDSA LN) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC
  • BOVIS HOMES (BVS LN) CUT TO HOLD FROM BUY AT JEFFERIES AND DEUTSCHE BANK
  • IPSEN (IPN FP) UPGRADED TO BUY FROM NEUTRAL AT NATIXIS
  • STMICROELECTRONICS (STM FP) DOWNGRADED TO UNDERWEIGHT FROM EQUALWEIGHT AT MORGAN STANLEY
  • ACCOR (AC FP) UPGRADED TO BUY FROM HOLD AT HSBC
  • MICHELIN (ML FP) DOWNGRADED TO HOLD FROM BUY AT SOCGEN
  • SALVATORE FERRAGAMO (SFER IM) UPGRADED TO BUY FROM HOLD AT HSBC
  • CREDIT SUISSE (CSGN VX) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS

 

 


Trader Development

Find out more