In Asian Equity Markets Japan’s Nikkei index fell to a three-week low on Friday morning after global shares tumbled, but investors wasted no time trimming losses after the Bank Of Japan raised its purchases of government bonds in its market operations. The Nikkei fell 0.1 percent to 19,979.72 in midmorning trade, after falling to as low as 19,856.65 earlier, the lowest point since June 15. The broader Topix fell 0.2 percent to 1,613.01. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.4 percent. South Korea’s KOSPI lost 0.3 percent and Australian stocks declined 0.9 percent. Hong Kong’s Hang Seng fell 0.4 percent.
In Currency Markets the dollar gained in Asian trading on Friday, getting a leg up against the yen after the Bank of Japan increased its purchases of Japanese government bonds in a move aimed at stemming a rise in yields. The dollar extended gains against its Japanese counterpart after the BOJ’s move, rising 0.6 percent to 113.830 yen after touching a session high of 113.835 yen, its highest level since May 12. It was up 1.3 percent for the week. The euro edged down 0.1 percent on the day to $1.1412 , and was down 0.1 percent for the week. The dollar index, which tracks the greenback against a basket of six major rivals, was 0.2 percent higher on the day at 95.947, up 0.3 percent for the week.
In Commodities Markets oil prices fell by more than 1 percent early on Friday, with U.S. crude futures falling below $45 per barrel as news of a rise in U.S. production added to earlier reports that OPEC output was also on the rise. Brent crude futures were trading down 1.2 percent, at $47.52 per barrel. U.S. West Texas Intermediate crude futures were at $44.94 per barrel, down 1.3 percent. U.S. crude inventories fell by 6.3 million barrels in the week to June 30, to 502.9 million barrels, according to the U.S. Energy Information Administration (EIA). Gasoline stocks fell by 3.7 million barrels, to 237.3 million barrels. Spot gold was 0.3 percent lower at $1,220.45 an ounce. Silver was down 0.6 percent at $15.89 an ounce after momentarily falling to $14.86.
In US Equity Markets stocks were sharply lower on Thursday after disappointing labor market data clashed with the possibility of a more hawkish Federal Reserve, while rising tensions in the Korean peninsula providing additional pressure. The Dow Jones Industrial Average fell 0.74 percent, to 21,320.04, the S&P 500 lost 0.94 percent, to 2,409.75 and the Nasdaq Composite fell 1 percent, to 6,089.46. Shares of Tesla lost 5.56 percent after the luxury electric carmaker’s Model S did not receive the top score in certain tests by the Insurance Institute for Highway Safety. General Electric lost 3.80 percent as the worst performer on the Dow after the European Commission accused the company of providing misleading information during a merger deal.
In Bond Markets U.S. Treasury yields rose on Thursday, with benchmark yields touching nearly eight-week highs, on the prospect of hawkish global central bank policy and concern that rising oil prices could spur inflationary pressures. Benchmark 10-year yields touched a nearly eight-week high of 2.391 percent before easing from that peak to last stand at 2.373 percent. The BOJ offered to buy an unlimited amount of 10-year JGBs at yield of 0.110 percent and also increased its buying of five- to ten-year JGBs through an auction to 500 billion yen from 450 billion yen.
Economic Calendar
- 09:30 GMT+1 UK Manufacturing Production m/m
- 13:30 GMT+1 CAD Employment Change
- 13:30 GMT+1 CAD Unemployment Rate
- 13:30 GMT+1 CAD Average Hourly Earnings m/m
- 13:30 GMT+1 US Non-Farm Employment Change
- 13:30 GMT+1 US Unemployment Rate
- 13:30 GMT+1 US Fed Monetary Policy Report
US Equity Upgrades
- BUFFALO WILD WINGS (BWLD) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT LONGBOW
- CECO ENVIRONMENTAL (CECE) UPGRADED TO STRONG BUY FROM BUY AT NEEDHAM
- IMMUNOGEN (IMGN) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
- MICROSEMI (MSCC) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN SACHS
- PETROCHINA (PTR) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT CREDIT SUISSE
- PRECISION DRILLING (PDS) UPGRADED TO STRONG BUY FROM OUTPERFORM AT RAYMOND JAMES
- SCHLUMBERGER (SLB) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BERNSTEIN
- SHIRE (SHPG) UPGRADED TO HOLD FROM REDUCE AT HSBC
US Equity Downgrades
- AMPHENOL (APH) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN SACHS
- AUTOZONE (AZO) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
- BARRICK GOLD (ABX) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BMO CAPITAL
- CHEVRON (CVX) DOWNGRADED TO UNDERPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
- CONOCOPHILLIPS (COP) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BERNSTEIN
- DEVON ENERGY (DVN) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BERNSTEIN
- EQUITY RESIDENTIAL (EQR) DOWNGRADED TO NEUTRAL FROM BUY AT UBS
- EXXON MOBIL (XOM) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC CAPITAL
- GENUINE PARTS (GPC) DOWNGRADED TO SELL FROM NEUTRAL AT GOLDMAN SACHS
- MAA (MAA) DOWNGRADED TO NEUTRAL FROM BUY AT UBS
- MONOGRAM RESIDENTIAL TRUST (MORE) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT MUFG
- NOBLE CORP. (NE) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT BERNSTEIN
- NORFOLK SOUTHERN (NSC) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT SCOTIABANK
- O’REILLY AUTOMOTIVE (ORLY) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
- O’REILLY AUTOMOTIVE (ORLY) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
- PARKWAY (PKY) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT JMP SECURITIES
- PATTERSON COMPANIES (PDCO) DOWNGRADED TO SELL FROM HOLD AT STIFEL
- PETROCHINA (PTR) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BERNSTEIN
- TAHOE RESOURCES (TAHO) DOWNGRADED TO HOLD FROM BUY AT TD SECURITIES
- TAHOE RESOURCES (TAHO) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BMO CAPITAL
- TRANSOCEAN (RIG) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BERNSTEIN
- WEATHERFORD (WFT) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BERNSTEIN
US Equity Initiations
- AT HOME GROUP (HOME) INITIATED WITH A BUY AT SUNTRUST
- CHEMICAL FINANCIAL (CHFC) INITIATED WITH A BUY AT DA DAVIDSON
- CHEMICAL FINANCIAL (CHFC) INITIATED WITH AN OVERWEIGHT AT PIPER JAFFRAY
- DOMTAR (UFS) INITIATED WITH AN UNDERWEIGHT AT KEYBANC
- ELEVATE CREDIT (ELVT) INITIATED WITH A BUY AT BTIG
- ENTEGRIS (ENTG) INITIATED WITH A HOLD AT DEUTSCHE BANK
- ENVESTNET (ENV) INITIATED WITH A NEUTRAL AT DA DAVIDSON
- GENESIS HEALTHCARE (GEN) INITIATED WITH AN OVERWEIGHT AT CANTOR
- INDEPENDENT BANK (IBCP) INITIATED WITH A NEUTRAL AT DA DAVIDSON
- JPMORGAN (JPM) INITIATED WITH A NEUTRAL AT GOLDMAN SACHS
- LOGITECH (LOGI) INITIATED WITH A BUY AT CITI
- MEDTRONIC (MDT) INITIATED WITH AN OUTPERFORM AT WILLIAM BLAIR
- MERCANTILE BANK (MBWM) INITIATED WITH A NEUTRAL AT DA DAVIDSON
- MKS INSTRUMENTS (MKSI) INITIATED WITH A BUY AT DEUTSCHE BANK
- NIKE (NKE) INITIATED WITH AN OUTPERFORM AT RAYMOND JAMES
- NMI HOLDINGS (NMIH) INITIATED WITH A BUY AT DEUTSCHE BANK
- NUVECTRA (NVTR) ASSUMED WITH A NEUTRAL AT PIPER JAFFRAY
- ONEOK (OKE) INITIATED WITH AN EQUAL WEIGHT AT MORGAN STANLEY
- PACKAGING CORP. (PKG) INITIATED WITH A SECTOR WEIGHT AT KEYBANC