In Asian Equity Markets  Japan’s Nikkei index inched up in choppy trade on Thursday morning, underpinned by record U.S. closing highs after the Federal Reserve signalled some concern about slow inflation, while Nintendo rose after its profit beat market expectations. MSCI’s broadest index of Asia-Pacific stocks outside Japan climbed 0.9 percent to heights not seen since December 2007.  South Korea and Japan’s Nikkei both added 0.2 percent, while Australia put on 0.3 percent. Stocks in the Philippines were at a one-year peak and Hong Kong’s Hang Seng index added 0.3 percent. But worries about tighter regulations nudged China’s blue-chip CSI300 index down 0.7 percent, though data showed a pick up in profit growth for industrial firms.

 

In Currency Markets the dollar licked its wounds at 13-month lows against a basket of major currencies on Thursday after the U.S. Federal Reserve’s more cautious wording on the inflation outlook bolstered views it might not hike interest rates again this year. The euro rose to as high as $1.1777, hitting its highest level since January 2015. It last stood at $1.1755, up 0.2 percent from late U.S. levels. The dollar lost 0.2 percent to 110.90 yen , edging near 110.625, its 5 1/2-week low touched on Monday. The British pound fetched $1.3146, reaching its highest level since September, while the Australian dollar reclaimed the $0.80 mark for the first time since 2015 and last stood at $0.8054 for a gain of 0.6 percent.

 

In Commodities Markets oil prices were sitting just below 8-week highs on Thursday, buoyed by hopes that a steeper-than-expected decline in U.S. crude oil inventories will reduce global oversupply. Brent crude futures were down 0.3 percent, at $50.81 a barrel, after rising about 1.5 percent in the previous session. U.S. West Texas Intermediate futures were down 0.3 percent, at $48.62 a barrel. U.S. crude stocks fell sharply last week as refineries increased output and imports declined, the EIA said on Wednesday. The 7.2 million barrel decline in crude inventories in the week ending July 21 was well above the 2.6 million barrel forecast. Spot gold rose 0.3 percent to $1,264.31 per ounce.

 

In US Equity Markets  stocks climbed modestly on Wednesday to record closing highs after the Federal Reserve kept interest rates unchanged and strong earnings reports from Boeing and AT&T. The Dow Jones Industrial Average rose 0.45 percent, to 21,711.01, the S&P 500 gained 0.03 percent, to 2,477.83 and the Nasdaq Composite added 0.16 percent, to 6,422.75. Telecommunications were the best performing sector, propelled higher by a 5.0-percent gain in AT&T  after its results. Boeing shares rose 9.9 percent after the plane maker posted quarterly profit and cash flow well ahead of Wall Street estimates. Shares of Ford Motor  and health insurer Anthem both fell after their respective quarterly results.

 

In Bond Markets  Japanese government bond prices edged up across the board on Thursday as the market received a lift after seeing U.S. Treasuries gain on a slightly dovish Federal Reserve policy meeting statement. The two-year and 10-year JGB yields both declined by a basis point to minus 0.120 percent and 0.065 percent, respectively. The 30-year yield fell half a basis point to 0.855 percent.

 

 

Economic Calendar

• 13:30 GMT+1 US Core Durable Goods Orders m/m
• 13:30 GMT+1 US Unemployment Claims

 

US Equity Upgrades

• ALLEGHENY TECHNOLOGIES (ATI) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT JPMORGAN
• BIOGEN (BIIB) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN SACHS
• C.H. ROBINSON (CHRW) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
• CHIPOTLE (CMG) UPGRADED TO HOLD FROM UNDERPERFORM AT JEFFERIES
• CINEMARK (CNK) UPGRADED TO OUTPERFORM FROM NEUTRAL AT WEDBUSH
• DOMINO’S PIZZA (DPZ) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT STEPHENS
• DSW (DSW) UPGRADED TO OUTPERFORM FROM NEUTRAL AT WEDBUSH
• ELECTRONIC ARTS (EA) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
• HEALTHSTREAM (HSTM) UPGRADED TO EQUAL-WEIGHT FROM UNDERWEIGHT AT FIRST ANALYSIS
• INDEPENDENT BANK (IBTX) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE
• MOBILE TELESYSTEMS (MBT) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
• MUTUALFIRST FINANCIAL (MFSF) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT DA DAVIDSON
• NOVARTIS (NVS) UPGRADED TO OVERWEIGHT FROM UNDERWEIGHT AT MORGAN STANLEY
• REGIONS FINANCIAL (RF) ADDED TO US 1 LIST AT BOFA/MERRILL
• VEON (VEON) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT JPMORGAN

 

US Equity Downgrades

• AMD (AMD) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BMO CAPITAL
• AMGEN (AMGN) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BMO CAPITAL
• BP (BP) DOWNGRADED TO HOLD FROM BUY AT SOCIETE GENERALE
• CF INDUSTRIES (CF) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
• CROSSAMERICA (CAPL) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL
• DISH (DISH) DOWNGRADED TO SELL FROM BUY AT CITI
• ELI LILLY (LLY) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT LEERINK
• HCA HOLDINGS (HCA) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL
• HOME BANCORP (HBCP) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
• II-VI (IIVI) DOWNGRADED TO NEUTRAL FROM BUY AT B. RILEY
• INTERPUBLIC GROUP (IPG) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC CAPITAL
• INTERPUBLIC GROUP (IPG) DOWNGRADED TO SECTOR PERFORM FROM TOP PICK AT RBC CAPITAL
• ITRON (ITRI) DOWNGRADED TO NEUTRAL DUE TO VALUATION AT BAIRD
• LAMAR ADVERTISING (LAMR) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
• PACIFIC PREMIER (PPBI) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT STEPHENS
• PULTEGROUP (PHM) DOWNGRADED TO NEUTRAL FROM POSITIVE AT SUSQUEHANNA
• QUANTA SERVICES (PWR) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
• SEAGATE (STX) DOWNGRADED TO HOLD FROM BUY AT CRAIG-HALLUM
• ZOETIS (ZTS) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
• ZOETIS (ZTS) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK

 

US Equity Initiations

• ALTICE USA (ATUS) INITIATED WITH A MARKET PERFORM AT WELLS FARGO
• CALLIDUS SOFTWARE (CALD) INITIATED WITH A BUY AT JEFFERIES
• CBRE GROUP (CBG) INITIATED WITH A NEUTRAL AT UBS
• JONES LANG LASALLE (JLL) INITIATED WITH A NEUTRAL AT UBS
• OCULAR THERAPEUTIX (OCUL) INITIATED WITH A BUY AT H.C. WAINWRIGHT
• VERU HEALTHCARE (FHCO) INITIATED WITH A BUY AT RODMAN & RENSHAW