Please share this page with the world

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

In European Equity Markets stocks fell on Monday as a pullback in bank stocks more than offset a stronger tech sector, while a fall in the pound drove Britain's FTSE 100 index to further record highs. The pan-European STOXX index slid 0.4 percent, while the FTSE 100 rose 0.4 percent after hitting an all-time high of 7,243.76 points in its 10th straight session of gains. SAP rose 0.8 percent to a fresh 22-year high after UBS said a survey of customers of the German software maker suggested that the company had room to lift its mid-term goals when it reports results late this month. German carmaker Volkswagen rose 4.9 percent with traders citing hopes a deal to resolve the U.S. diesel emissions scandal could be close. 

 

In Currency Markets the U.S. dollar fell against the safe-haven yen on Monday on investors' reduced appetite for risk, while sterling sank to more than two-month lows on talk that Britain would drastically rework trade ties with the European Union after Brexit. The dollar was last down 0.4 percent at 116.43 yen. Sterling slid as low as $1.2125, its weakest against the dollar since the end of October. It fell about 1.2 percent against the euro, hitting 86.91 pence per euro, the lowest since mid-November. Against the dollar, sterling was last down 1 percent at $1.2156, while the euro was up 0.3 percent at 1.0562. The dollar was down 0.17 percent against the franc at 1.0162 francs. The dollar index lost 0.08 percent at 102.150.

 

In Commodities Markets oil prices tumbled by 3 percent on Monday on concern that record Iraqi crude exports and rising U.S. output would undermine OPEC's efforts to curb global oversupply. U.S. crude futures were trading at $52.36 a barrel, down $1.63. Brent futures were down $1.68 a barrel at $55.42. In Iraq, OPEC's second-biggest producer, oil exports from the southern Basra ports reached a record high of 3.51 million barrels per day in December, the oil ministry said. Spot gold was up 0.5 percent at $1,178.50 an ounce, while U.S. gold futures for February delivery rose $5.10 to $1,178.50. Silver was down 0.1 percent at $16.46 an ounce, while platinum rose 0.4 percent to $970.75. Palladium was little changed at $756.

 

In US Equity Markets  declines in bank and energy companies weighed on Wall Street on Monday, distancing the Dow from the 20,000 mark, while gains in technology stocks pushed the Nasdaq to a record intraday high. The Dow Jones Industrial Average was down 0.13 percent, at 19,937.27. The S&P 500 fell 0.11 percent, at 2,274.5 and the Nasdaq Composite was up 0.19 percent, at 5,531.32. Ariad Pharma rose nearly 73 percent on a $5.20 billion buyout deal with Japan's Takeda. Pet hospital operator VCA jumped 28 percent after Mars Inc said it would buy the company for $7.7 billion. Surgical Care Affiliates jumped 16 percent on a deal to be bought by UnitedHealth for about $2.30 billion. Dow component UnitedHealth lost 0.6 percent.

 

In Bond Markets U.S. Treasury yields fall on Monday as nervousness about the Chinese yuan and Britain's exit from the European Union rekindle safe haven demand for low-risk government bonds ahead of this week's $56 billion supply. The yield on the benchmark 10-year Treasuries was down 3 basis points at 2.385 percent, while the 30-year bond yield was 3 basis points lower at 2.975 percent.

 

 

European Equity Upgrades/Downgrades

  • BABCOCK (BAB LN) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • BARCLAYS (BARC LN) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK
  • RSA (RSA LN) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
  • CONTINENTAL (CON GY) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
  • HELLA KGAA HUECK & CO (HLE GY) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
  • SCHAEFFLER (SHA GY) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JPMORGAN
  • WIRECARD (WDI GY) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT CREDIT SUISSE
  • DEUTSCHE BORSE (DB1 GY) RESUMED BUY AT CITI
  • MICHELIN (ML FP) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
  • BANCO POPULAR (POP SM) DOWNGRADED TO SELL FROM NEUTRAL AT UBS

 

 


Trader Development

Find out more