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06 Jan 2017 18:32 GMT+0 - Closing Wrap

In European Equity Markets stocks rallied from lows on Friday after a stronger than anticipated increase in earnings in a flagship U.S. jobs report made up for a weaker-than-forecast payrolls figure. The STOXX 600, which had been down 0.4 percent ahead of the data, closed down just 0.1 percent. Shares in Fiat Chrysler Automobiles gained 7 percent after Goldman Sachs added the stock to its "Conviction List" and raised its target price to 16.5 euros from 9.9 euros. Precious metals miners Fresnillo and Randgold Resources fell 3.5 percent and 2.8 percent respectively after gold fell from one-month peaks, hindered by dollar strength. Danish payments firm Nets lost 3.1 percent after a downgrade to "sell" from "hold" by Danske Bank.

 

In Currency Markets the dollar rose on Friday, boosted by a solid U.S. jobs report, but was headed for a second straight weekly loss after tumbling the day before on mixed U.S. economic data and apparent action by Chinese authorities to shore up the yuan. The dollar hit a session high against the yen of 116.74 yen, while the euro, after hitting a one-week high immediately after the report's release, fell to a session low of $1.0536. Sterling fell after two days of gains and ahead of a decision in the next week or two on parliament's role in Brexit negotiations, while Mexico's peso was boosted by a second straight day of currency intervention from its central bank. The dollar index rose 0.4 percent at 101.92 after having set a 14-year high of 103.820 three days ago.

 

In Commodities Markets  oil rose slightly on Friday on increased buying ahead of the weekend, but a strong U.S. dollar and lingering doubts that not all OPEC producers would cut output in line with an agreement, pressured prices.  Brent crude futures were trading 19 cents higher at $57.08 per barrel. U.S. West Texas Intermediate crude futures rose 24 cents at $54.00 a barrel, after trading between $53.32 and $54.32. Spot gold was down 0.4 percent at $1,175.90 an ounce and spot silver was down 0.7 percent at $16.46. Platinum was 0.6 percent lower at $961.99, putting it on track for a gain of 7.2 percent this week. Palladium hit a five-week high of $755.40 an ounce before falling back to $744.95, up 0.9 percent.

 

In US Equity Markets  the S&P 500 and the Dow Jones Industrial Average were little changed on Friday after a mixed jobs report, while tech stocks lifted the Nasdaq to a record intraday high. The Dow Jones Industrial Average was up 0.02 percent, at 19,903.18, the S&P 500 was up 0.07 percent, at 2,270.67 and the Nasdaq Composite index was up 0.39 percent, at 5,509.17. Wal-Mart fell 1.5 percent after the company said Rosalind Brewer, chief executive officer of its warehouse club stores Sam's Club, would retire from on Feb. 1. Amgen rose 3.3 percent, after a U.S. district judge blocked Sanofi and Regeneron from selling their cholesterol drug, which Amgen said infringed its patents. Regeneron was off 7 percent. 

 

In Bond Markets  U.S. Treasury debt yields rallied from multi-week lows on Friday after data showed a rebound in U.S. wages last month despite a smaller-than-expected jobs gain, which could drive the Federal Reserve to consider raising interest rates as early as the first quarter.  In early morning trading, the U.S. 10-year note was down 8/32 in price to yield 2.397 percent, compared with 2.368 percent late on Thursday. U.S. 30-year bond prices fell 12/32, yielding 2.982 percent , from Thursday's 2.963 percent. U.S. two-year note yields were at 1.201 percent from 1.178 percent on Thursday.

 

 

European Equity Upgrades/Downgrades

  • NEXT (NXT LN) DOWNGRADED TO ADD FROM BUY AT ALPHAVALUE
  • LLOYDS BANKING GROUP (LLOY LN) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
  • ROTORK (ROR LN) INITIATED WITH A BUY RATING AT GOLDMAN SACHS
  • SMITHS GROUP (SMIN LN) INITIATED WITH A BUY RATING AT GOLDMAN SACHS
  • WORLDPAY (WPG LN) UPGRADED TO OUTPERFORM FROM NEUTRAL AT EXANE
  • MELROSE (MRO LN) INITIATED BUY AT PANMURE
  • CONTINENTAL (CON GY) UPGRADED TO BUY FROM HOLD AT SOCGEN
  • DSM (DSM NA) UPGRADED TO OVERWEIGHT FROM EQUALWEIGHT AT BARCLAYS
  • TOD'S (TOD IM) DOWNGRADED TO SELL FROM HOLD AT SOCGEN
  • ISS (ISS DC) DOWNGRADED TO HOLD FROM BUY WITH DEUTSCHE BANK
  • BNP PARIBAS (BNP FP) UPGRADED TO BUY FROM HOLD AT KEPLER CHEUVREUX
  • SAIPEM (SPM IM) DOWNGRADED TO SELL FROM HOLD AT CANACCORD

 

 


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