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11 Jan 2017 18:37 GMT+0 - Closing Wrap

In European Equity Markets stocks ended off highs on Wednesday as pharma stocks turned lower on worries over pricing pressure in the U.S. following remarks by Donald Trump in his first news conference. Europe's index of healthcare stocks fell 0.7 percent, weighing on the region's benchmark STOXX Europe 600 index which inched up 0.2 percent at the close. London-listed drugmakers Shire and Astrazeneca fell 3.2 percent and 1.8 percent, while Swiss heavyweights Novartis and Roche both fell more than 1 percent, causing the SMI index to end with a decline of 0.3 percent. Sainsbury's shares rose as much as 7.8 percent after Britain's second-biggest supermarket beat forecasts for underlying sales in its Christmas quarter.

 

In Currency Markets the U.S. dollar hit its highest level in a week against a basket of major currencies on Wednesday on expectations that Donald Trump would sound a pro-growth message in his first news conference as U.S. president-elect. The euro fell about 0.9 percent against the dollar to a one-week low of $1.0455. The dollar rose about 0.9 percent against the yen  to a session high of 116.85 yen. The dollar hit a one-week high against the Swiss franc of 1.0248 francs. Sterling hit a three-month low of $1.2038. The Mexican peso weakened to an all-time low of 21.955 to the dollar as traders expect Trump to clarify whether he will stand by his campaign pledges to break with trade agreements with Mexico.

 

In Commodities Markets  oil prices rose for the first time in three days on Wednesday, boosted by an early Wall Street rally ahead of a news conference by U.S. President-elect Donald Trump, and also lifted by news of Saudi supply cuts to Asia. Brent was up 2.7 percent, at $55.06 a barrel. U.S. West Texas Intermediate rose 2.6 percent, to $52.12 per barrel. Crude inventories rose 4.1 million barrels in the week to Jan. 6, the U.S. EIA said, higher than analyst expectations for a 1.2 million-barrel build.  Spot gold was down 0.4 percent at 1,182.71 an ounce from an earlier peak of $1,191.32, the strongest since Nov. 30. Silver was down 0.9 percent at $16.64 an ounce from Tuesday's four-week high of $16.90. 

 

In US Equity Markets  stocks fell to session lows, before recovering ground, on Wednesday as drug stocks took a beating after Donald Trump's comments on drug pricing in his first formal news conference after his election victory. The Dow Jones Industrial Average was up 0.28 percent, at 19,910.7, the S&P 500 was up 0.04 percent, at 2,269.81 and the Nasdaq Composite was down 0.07 percent, at 5,548.14.  The S&P 500 healthcare index, which reversed course following Trump's comments, was down about 1 percent and on track for its worst day since Nov. 22. The Nasdaq biotechnology index lost 2.4 percent. Merck's near 3 percent rise and Goldman Sachs's near 1 percent increase helped keep the Dow afloat.

 

In Bond Markets U.S. Treasury yields were slightly higher on Wednesday, holding in a narrow trading range in advance of a $20-billion auction of 10-year notes, part of this week's $56 billion in longer-dated government debt supply. The yield on 10-year Treasury notes was up 1 basis point at 2.390 percent. Two-year yields were up slightly at 1.198 percent, while 30-year yields ticked up modestly to 2.974 percent.

 

 

European Equity Upgrades/Downgrades

  • ASOS (ASC LN) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT MORGAN STANLEY
  • BT GROUP (BT/A LN) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • BURBERRY GROUP (BRBY LN) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
  • CAPITA (CPI LN) UPGRADED TO HOLD FROM REDUCE AT HSBC
  • EVRZ (EVR LN) UPGRADED TO NEUTRAL FROM SELL AT CITIGROUP
  • UBM (UBM LN) DOWNGRADED TO SELL FROM HOLD AT BERENBERG
  • THOMAS COOK (TCG LN) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
  • HENKEL (HEN3 GY) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
  • BEIERSDORF (BEI GY) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
  • HUGO BOSS (BOSS GY) DOWNGRADED TO HOLD FROM BUY AT HSBC
  • MTU AERO ENGINES (MTX GY) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT BERNSTEIN
  • PROSIEBEN (PSM GY) UPGRADED TO BUY FROM HOLD AT BERENBERG
  • WOLTERS KLUWER (WKL GY) UPGRADED TO HOLD FROM SELL AT BERENBERG
  • ENI SPA (ENI IM) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT EXANE BNP PARIBAS
  • ABB (ABBN VX) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
  • SSAB (SSABA SS) DOWNGRADED TO SELL FROM HOLD AT DEUTSCHE BANK
  • DNB (DNB NO) DOWNGRADED TO HOLD FROM BUY AT HSBC
  • DONG ENERGY (DENERG DC) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT BERNSTEIN
  • VOLVO (VOLVA SS) RESUMED WITH AN UNDERWEIGHT AT BARCLAYS
  • BANK OF IRELAND (BKIR ID) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE
  • NOVARTIS (NOVN VX) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE

 

 


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