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10 Jan 2017 07:03 GMT+0 - Opening Wrap

In Asian Equity Markets stocks steadied on Tuesday and crude prices inched up from Monday's three-week low, with investors uncertain whether output cuts by major exporters, led by Saudi Arabia and Russia, will be enough to support the oil market as other producers have increased supplies.  MSCI's broadest index of Asia-Pacific stocks outside Japan advanced 0.3 percent after a tentative start. Japan's Nikkei erased earlier losses to trade little changed. China's CSI 300 was little changed, after China's producer prices beat expectations to rise to a more than five-year high in December as raw materials prices rose in the face of a weaker yuan. The Shanghai Composite index lost 0.2 percent and Hong Kong's Hang Seng added 0.3 percent.

  

In Currency Markets sterling steadied somewhat in Asian trade on Tuesday after weekend comments from British Prime Minister Theresa May sent it skidding to 2-1/2-month lows, while the dollar wallowed well below recent highs as the perceived safe-haven yen gained. The pound edged up 0.1 percent to $1.2162 after sinking as low as $1.2125 on Monday, its weakest since Oct. 28, following May's statement that she was not interested in keeping "bits of membership" of the European UnionThe dollar was 0.3 percent lower against a basket of six major peers, at 101.60. It skidded 0.6 percent to 115.365 yen, well below its overnight high of 117.53. The euro gained 0.4 percent to $1.0617, moving away from last week's 14-year low of $1.0340.

 

In Commodities Markets oil markets edged higher on Tuesday on expectations that at least some planned production cuts would be implemented, making a slight recovery from big losses the previous day over doubts the agreed reductions would rebalance an oversupplied market. Brent crude futures were trading at $55.14 per barrel, up 20 cents from their last close. U.S. West Texas Intermediate crude oil futures were trading at $52.12 per barrel, up 16 cents. Spot gold was up 0.3 percent at $1,184.56 an ounce. Silver was up 0.4 percent at $16.62 an ounce and platinum was 0.3-percent higher at $977.10. Palladium eased 0.2 percent at $756.80 an ounce after rising to its highest in more than a month on Monday.

 

In US Equity Markets  declines in energy and financial stocks weighed on the S&P 500 on Monday and helped stall the Dow's pursuit of the 20,000 milestone ahead of earnings season and expected U.S. policy changes under the Donald Trump presidency. The Dow Jones Industrial Average was down 0.38 percent, to 19,887.38, the S&P 500 had lost 0.35 percent, to 2,268.9 and the Nasdaq Composite had added 0.19 percent, to 5,531.82. The S&P's energy sector lost 1.5 percent and the financial sector fell 0.8 percent.  The S&P's health sector was the biggest gainer with Merck & Co. the leading boost and Vertex Pharmaceuticals  the biggest percentage gainer with a 4.4 pct jump after it issued guidance. 

 

In Bond Markets U.S. Treasury yields fall as nervousness about the China's currency 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 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. The German 10-year Bund yield rose to 0.323 percent in early trade, up 2 basis points on the day and its highest level in three weeks.

 

 

US Equity Upgrades

  • VALE (VALE) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
  • CEB (CEB) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT BARCLAYS
  • CLOROX (CLX) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT BARCLAYS
  • LASALLE HOTEL (LHO) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT RAYMOND JAMES
  • KITE REALTY GROUP (KRG) UPGRADED TO STRONG BUY FROM OUTPERFORM AT RAYMOND JAMES
  • KIMCO REALTY (KIM) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT RAYMOND JAMES
  • RAYMOND JAMES (RJF) UPGRADED TO BUY FROM NEUTRAL AT NOMURA
  • TD AMERITRADE (AMTD) UPGRADED TO BUY FROM NEUTRAL AT NOMURA
  • STERICYCLE (SRCL) UPGRADED TO OUTPERFORM FROM NEUTRAL AT MACQUARIE
  • ROCKWELL AUTOMATION (ROK) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT MORGAN STANLEY
  • TRUECAR (TRUE) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT JMP SECURITIES
  • NOBLE CORP. (NE) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT BARCLAYS
  • AMERIPRISE (AMP) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
  • MELCO CROWN (MPEL) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
  • OASIS PETROLEUM (OAS) UPGRADED TO OUTPERFORM FROM NEUTRAL AT MACQUARIE
  • JD.COM (JD) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN

 

US Equity Downgrades

  • BOSTON PROPERTIES (BXP) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • COCA-COLA (KO) DOWNGRADED TO SELL FROM NEUTRAL AT GOLDMAN
  • INTERNATIONAL FLAVORS (IFF) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
  • KIMBERLY-CLARK (KMB) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS
  • REGENCY CENTERS (REG) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
  • CEDAR REALTY TRUST (CDR) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
  • REALTY INCOME (O) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT RAYMOND JAMES
  • EASTERLY GOVERNMENT PROPERTIES (DEA) DOWNGRADED TO MARKET PERFORM AT RAYMOND JAMES
  • EASTGROUP PROPERTIES (EGP) DOWNGRADED TO MARKET PERFORM AT RAYMOND JAMES
  • CORPORATE OFFICE PROPERTIES (OFC) DOWNGRADED TO MARKET PERFORM AT RAYMOND JAMES
  • RUDOLPH TECHNOLOGIES (RTEC) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
  • GRAMERCY PROPERTY TRUST (GPT) DOWNGRADED TO MARKET PERFORM AT JMP SECURITIES
  • EAGLE PHARMACEUTICALS (EGRX) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT MIZUHO
  • MAIN STREET (MAIN) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
  • VIACOM (VIAB) UPGRADED TO BUY FROM NEUTRAL AT GUGGENHEIM
  • PHILIP MORRIS (PM) DOWNGRADED TO BUY FROM CONVICTION BUY AT GOLDMAN

 

US Equity Initiations

  • PEPSICO (PEP) INITIATED WITH AN EQUAL WEIGHT AT BARCLAYS
  • DR PEPPER SNAPPLE (DPS) INITIATED WITH AN EQUAL WEIGHT AT BARCLAYS
  • WILDHORSE RESOURCE (WRD) INITIATED WITH AN OVERWEIGHT AT BARCLAYS
  • HORMEL FOODS (HRL) INITIATED WITH AN OVERWEIGHT AT PIPER JAFFRAY

 

 

 

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