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10 Jan 2017 18:26 GMT+0 - Closing Wrap

In European Equity Markets Britain's FTSE 100 blue-chip index hit fresh record highs on Tuesday, boosted by gains among retailers, while a rally in mining stocks more than offset weaker financials, helping European shares end slightly in positive territory. The pan-European STOXX 600 index inched up 0.1 percent, while the FTSE 100 rose 0.5 percent after hitting a new all-time high of 7,284.81 points. France's CAC 40 was flat and Germany's DAX added 0.2 percent.Morrisons was among the top gainers in London after Christmas trading results exceeded expectations. Its shares ended up 3.6 percent. Britain's largest retailer, Tesco, rose 6 percent after market research showed it had the fastest sales growth of the country's four major players.

 

In Currency Markets the U.S. dollar edged lower against a basket of major currencies on Tuesday on nervousness ahead of U.S. President-elect Donald Trump's first news conference set for Wednesday, while the Mexican peso hit a record low.  The dollar index was last down 0.18 percent at 101.750. The greenback fell as much as 0.7 percent against the yen to 115.21 yen, near Friday's more than three-week low of 115.04 yen. The euro was last up 0.15 percent at $1.0588. The Mexican peso hit a new record low against the dollar of 21.6250 pesos as traders avoided exposure to the currency ahead of Trump's news conference. The peso has fallen on worries over the prospect of Trump's protectionist policies. Sterling was last up slightly at $1.2166.

 

In Commodities Markets  oil prices fell about 1 percent on Tuesday extending the previous session's sharp sell-off as the U.S. dollar recovered some early losses and doubts over implementation of a global deal to cut output loomed.  Brent crude fell 1.6 percent, to $54.04 per barrel. U.S. crude futures was 1.3 percent, lower at $51.27 per barrel. Both contracts fell more than $2 a barrel, or around 4 percent, on Monday on doubts that OPEC and other key oil producers would cut output as promised to try to reduce global oversupply. Spot gold hit its highest since Nov. 30 at $1,190.46 an ounce, and was last up 0.6 percent at $1,188.20 an ounce. Silver inched up 1.3 percent to $16.78 an ounce, its highest since Dec. 15.

 

In US Equity Markets  the Nasdaq hit a record intraday high on Tuesday, extending its bullish run as healthcare stocks rose for the sixth straight session, while banks helped the S&P 500 and the Dow reverse small losses. The Dow was up 0.13 percent, at 19,914.14. The S&P 500 was up 0.17 percent, at 2,272.77 and the Nasdaq Composite was up 0.26 percent, at 5,546.16. Illumina rose 16 percent after the diagnostics company gave a strong quarterly forecast and launched a new product. Valeant rose 7.7 percent following a deal to sell certain businesses and brands for about $2.12 billion, a move that it would help it lower its more than $30 billion debt. Goldman Sachs was down 0.6 percent after Citigroup rating cut due to lofty valuations.

 

In Bond Markets  U.S. Treasury yields were little changed on Tuesday as investors made room for $24 billion of three-year government notes, which was offset by appetite for bonds due to a pullback in U.S. stocks.  The yield on benchmark 10-year Treasuries was little changed at 2.378 percent after moving in a narrow 3 basis-point range. Two-year yields were flat at 1.194 percent, while 30-year yields edged up 1 basis point to 2.978 percent.

 

 

European Equity Earnings

  • Metro (MEO GY) - Co. reports Q1 revenue EUR 17bln vs. Exp. EUR 17.1bln, while they also affirm FY 16/17 EBIT.
  • Sika (SIK VX) - Co. report 2016 revenue CHF 5.75bln vs. Prev. CHF 5.49bln Y/Y, guides FY16 EBIT CHF 780-800mln and guides initial FY17 revenue +68% Y/Y to CHF 6.0bln.

 

European Equity Upgrades/Downgrades

  • SHELL (RDSA LN) UPGRADED TO OUTPERFORM FROM MARKET PEROFRM AT BMO CAPITAL MARKETS
  • VODAFONE (VOD LN) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN SACHS
  • BT (BT/ A LN) DOWNGRADED TO BUY FROM CONVICTION BUY AT GOLDMAN SACHS
  • 3I GROUP (III LN) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT MACQUARIE
  • TULLOW OIL (TLW LN) UPGRADED TO SPECULATIVE BUY FROM REDUCE AT GMP
  • DEUTSCHE TELEKOM (DTE GY) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN SACHS
  • INNOGY (IGY GY) INITIATED WITH AN OUTPERFORM AT BERNSTEIN
  • LANXESS (LXS GY) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • TELEFONICA DEUTSCHELAND (O2D GY) DOWNGRADED TO SELL FROM NEUTRAL AT GOLDMAN SACHS
  • COMMERZBANK (CBK GY) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
  • SIEMENS (SIE GY) UPGRADED TO BUY FROM NEUTRAL AT UBS
  • GRENKELEASING (GLJ GY) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK
  • AIR FRANCE-KLM (AF FP) DOWNGRADED TO UNDERWEIGHT FROM EQUALWEIGHT AT BARCLAYS
  • ELIOR (ELR FP) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
  • ATLAS COPCO (ATCOA BB) UPGRADED TI BUY FROM HOLD AT SOCGEN
  • PROXIMUS (PROX BB) DOWNGRADED TO SELL FFROM NEUTRAL AT GOLDMAN SACHS
  • TERNA (TRN IM) UPGRADED TO OUTPERFORM FROM UNDERPERFORM AT MACQUARIE
  • RICHEMONT (CFR VX) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • TELE2 (TEL2A SS) UPGRADED TO NEUTRAL FROM SELL AT GOLDMAN SACHS
  • TELENOR (TEL NO) DOWNGRADED TO SELL FROM NEUTRAL AT GOLDMAN SACHS
  • SKF (SKFB SS) DOWNGRADED TO SELL FROM BUY AT UBS

 

 


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