In Asian Equity Markets Japan’s Nikkei index rose on Monday morning as bank stocks rose following moves by U.S. President Donald Trump to reduce regulation in the financial sector, but a slightly stronger yen kept gains limited. The Nikkei rose 0.2 percent to 18,956.45 in mid-morning trade. The broader Topix gained 0.4 percent to 1,520.52 and the JPX-Nikkei Index 400 added 0.3 percent to 13,622.42. MSCI’s broadest index of Asia-Pacific stocks outside Japan inched up 0.4 percent, with Taiwan leading the pack by adding 0.9 percent. China’s Shanghai composite lost 0.1 percent and Hong Kong’s Hang Seng Index gained 0.49 percent. The Australian index, S&P/ASX 200, rose 0.24 percent.

In Currency Markets the dollar started the week on the back foot on Monday, after U.S. data showed a smaller-than-expected rise in wages in January that reinforced expectations the Federal Reserve will refrain from raising interest rates next month. The U.S. currency fell 0.2 percent against the yen from Friday’s late North American levels to 112.36 yen, retreating towards last week’s late-November low of 112.05. The euro was steady on the day at $1.0782, holding well above Friday’s session low of $1.0711. The Australian dollar fell as retail sales for December came in below expectations. The Aussie fell 0.3 percent to $0.7667, moving away from last week’s three-month high of $0.7696.

In Commodities Markets oil prices edged up on Monday on fears that new U.S. sanctions against Iran could be extended to affect crude supplies, but markets were capped by further signs of growing U.S. production. Brent crude futures were trading at $56.91 per barrel, up 10 cents from their last close. U.S. West Texas Intermediate futures were up 8 cents at $53.91 a barrel. Gold prices edged up on Monday on technical buying and a weaker dollar after mixed U.S. jobs data late last week muted expectations for near-term interest rate hikes. Spot gold had gained 0.3 percent to $1,223 per ounce and spot silver on Monday rose 0.5 percent to $17.56 an ounce. Platinum prices were firm at $1,003.60, while palladium rose 0.5 percent to $749.72.

In US Equity Markets stocks climbed on Friday, with the S&P 500 closing just short of a record high, boosted by gains in financial stocks as President Donald Trump moved ahead with deregulation action and by a strong payrolls report. The Dow Jones Industrial Average rose 0.94 percent, to close at 20,071.46, the S&P 500 gained 0.73 percent, to 2,297.42 and the Nasdaq Composite added 0.54 percent, to 5,666.77. Amazon.com fell 3.5 percent after the world’s largest online retailer forecast a surprise fall in operating profit for the current quarter. Macy’s jumped gained 6.4 percent following a takeover approach from Canada’s Hudson’s Bay. JP Morgan Chase shares closed up 3.1 percent as the biggest boost to the S&P 500.

In Bond Markets yields on 10-year Japanese government bond stabilised on Monday after the Bank of Japan extended buying in that maturities for the second straight day to quell market anxiety about the BOJ’s stance on bond purchases. On Monday, the 10-year yield stood flat at 0.095 percent , moving off Friday’s one-year high of 0.150 percent. In Monday’s afternoon trade, the 20-year yield rose 2.5 basis points to 0.710 percent , near 11-month high of 0.730 percent hit on Friday. The 30-year yield rose 2.5 basis points to 0.890 percent , with investors cautious head of an auction of 30-year bonds on Thursday.

US Equity Upgrades
ALCOA (AA) UPGRADED TO BUY FROM UNDERPERFORM AT BOFA/MERRILL
BALL CORP (BLL) UPGRADED TO BUY FROM HOLD AT VERTICAL RESEARCH
CDK GLOBAL (CDK) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT MORGAN STANLEY
DECKERS BRANDS (DECK) UPGRADED TO NEUTRAL FROM NEGATIVE AT SUSQUEHANNA
ENSCO (ESV) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
FIAT CHRYSLER (FCAU) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT BARCLAYS
FIREEYE (FEYE) UPGRADED TO EQUAL-WEIGHT FROM UNDERWEIGHT AT FIRST ANALYSIS
FORD (FORD) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
FORTINET (RTNT) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT PIPER JAFFRAY
KENNAMETAL (KMT) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT JPMORGAN
PAYLOCITY (PCTY) UPGRADED TO BUY FROM UNDERPERFORM AT BOFA/MERRILL
PRECISION DRILLING (PDS) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
TD AMERITRADE (AMTD) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
TRANSOCEAN (RIG) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
WEATHERFORD (WFT) UPGRADED TO BUY FROM HOLD AT LOOP CAPITAL

US Equity Downgrades
ALTRIA GROUP (MO) DOWNGRADED TO HOLD FROM BUY AT BERENBERG
AMERIGAS (APU) DOWNGRADED TO UNDERPERFORM AT BOFA/MERRILL
APACHE (APA) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT MACQUARIE
CLOVIS (CLVS) DOWNGRADED TO SELL FROM NEUTRAL AT CHARDAN
EATON (ETN) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
FIREEYE (FEYE) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT PIPER JAFFRAY
GOPRO (GPRO) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT RAYMOND JAMES
GOPRO (GPRO) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT BAIRD
INTERNATIONAL PAPER (IP) DOWNGRADED TO NEUTRAL FROM BUY AT DA DAVIDSON
MAGELLAN MIDSTREAM (MMP) DOWNGRADED TO NEUTRAL FROM BUY AT UBS
NATURAL GROCERS (NGVC) DOWNGRADED TO HOLD FROM BUY AT SUNTRUST
NUSTAR ENERGY (NS) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
NUSTAR GP HOLDINGS (NSH) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
PAREXEL (PRXL) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
PAREXEL (PRXL) DOWNGRADED TO SELL FROM HOLD AT DEUTSCHE BANK
QUINTILESIMS (Q) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
RALPH LAUREN (RL) DOWNGRADED TO NEUTRAL FROM BUY AT UBS
RALPH LAUREN (RL) DOWNGRADED TO OUTPERFORM FROM BUY AT CLSA
RALPH LAUREN (RL) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT PIPER JAFFRAY
TERRAFORM POWER (TERP) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT MACQUARIE
TRACTOR SUPPLY (TSCO) DOWNGRADED TO HOLD FROM BUY AT SUNTRUST
USD PARTNERS (USDP) DOWNGRADED TO UNDERPERFORM FROM BUY AT BOFA/MERRILL

US Equity Initiations
AXOVANT SCIENCES (AXON) INITIATED WITH AN OUTPERFORM AT COWEN
BIOVERATIV (BIVV) INITIATED WITH A BUY AT STIFEL
JELD-WEN (JELD) HOLDING INITIATED WITH AN OUTPERFORM AT WEDBUSH
NVIDIA (NVDA) INITIATED WITH AN UNDERPERFORM ON VALUATION AT CLSA