In Asian Equity Markets Japan’s Nikkei index rose on Wednesday as banks and financial shares tracked their U.S. counterparts higher, shrugging off another North Korean missile launch. The Nikkei was up 0.4 percent at 22,576.86 points at the end of morning trading. The broader Topix gained 0.7 percent to 1,785.14, while the JPX-Nikkei Index 400 also added 0.7 percent to 15,809.76. MSCI’s broadest index of Asia-Pacific stocks outside Japan was down a fraction, while China’s blue chip index fell 1 percent. Australia’s main index rose 0.5 percent.

 

In Currency Markets the dollar steadied against the yen on Wednesday, supported by strong U.S. economic data while North Korea’s latest missile launch had little immediate impact on currency markets though investors are focused on how the U.S. responds to the test. The greenback was nearly flat at 111.560 yen, after rising 0.35 percent the previous day to pull away from a low below 111.00. The euro nudged up 0.1 percent to $1.1852, while the Swiss franc stood little changed at 0.9837 franc per dollar. The pound was 0.2 percent higher at $1.3368. The New Zealand dollar lost 0.1 percent to $0.6895 and the Australian dollar was steady at $0.7594.

 

In Commodities Markets oil prices fell on Wednesday on doubts OPEC and Russia will agree on extending a crude production cut that the market has already priced in, and after a report of an unexpected rise in U.S. crude oil inventories. U.S. West Texas Intermediate crude futures were at $57.67 a barrel, down 0.6 percent below their last settlement. Brent crude futures were at $63.14 a barrel, down 0.7 percent.  Spot gold was up 0.2 percent at $1,295.84 an ounce. Silver recovered slightly from previous session’s four-week low and was up 0.3 percent at $16.88 an ounce. Platinum gained 0.2 percent at $950.40 an ounce. Palladium fell 0.5 percent at $1,022.50 an ounce, but stayed close to Tuesday’s peak of $1,028.70.

 

In US Equity Markets stocks rose  to record highs on Tuesday led by sharp gains in bank stocks, and boosted by progress for a tax cut bill, strong consumer confidence data and encouraging comments from President Donald Trump’s nominee to lead the Federal Reserve. The Dow Jones Industrial Average rose 1.09 percent, to 23,836.71, the S&P 500 gained 0.99 percent, to 2,627.05 and the Nasdaq Composite added 0.49 percent, to 6,912.36.  The S&P financial sector rose 2.6 percent, its biggest daily percentage increase since March 1. JP Morgan rose 3.5 percent and Bank of America gained 3.9 percent, while the S&P 500 banks index jumped 3.3 percent.

 

In Bond Markets  Japanese government bond prices inch up on Wednesday on a regular debt-buying operation conducted by the Bank of Japan and as tensions on the Korean peninsula provided mild support.  The benchmark 10-year JGB yield fell half a basis point to 0.030 percent, while the 20-year yield declined by a basis point to 0.570 percent. The central bank on Wednesday offered to buy 700 billion yen ($6.28 billion) of 5- to 40-year JGBs as part of its regular bond-purchasing programme.

 

 

Economic Calendar

• 14:30 GMT+0 US Prelim GDP q/q
• 15:00 GMT+0 US BOE Gov Carney Speaks
• 16:00 GMT+0 US Fed Chair Yellen Testifies
• 16:30 GMT+0 US Crude Oil Inventories

 

US Equity Upgrades

• AQUANTIA (AQ) INITIATED WITH AN OVERWEIGHT AT BARCLAYS
• ESSENT (ESNT) RESUMED WITH AN OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
• HOME DEPOT (HD) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT ATLANTIC EQUITIES
• IBERIABANK (IBKC) UPGRADED TO BUY FROM HOLD AT SUNTRUST
• IHS MARKIT (INFO) UPGRADED TO BUY FROM HOLD AT SUNTRUST
• MEREDITH (MDP) UPGRADED TO BUY FROM HOLD AT JEFFERIES
• TCF FINANCIAL (TCF) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT PIPER JAFFRAY
• TRIPLEPOINT VENTURE (TPVG) UPGRADED TO BUY FROM NEUTRAL AT COMPASS POINT

 

US Equity Downgrades

• BARRACUDA (CUDA) DOWNGRADED TO HOLD FROM BUY AT NEEDHAM
• BAZAARVOICE (BV) DOWNGRADED TO NEUTRAL FROM BUY AT B. RILEY FBR
• BAZAARVOICE (BV) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
• CORELOGIC (CLGX) DOWNGRADED TO HOLD FROM BUY AT SUN TRUST
• CUBESMART (CUBE) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
• ECOPETROL (EC) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT RAYMOND JAMES
• LOWE’S (LOW) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT ATLANTIC EQUITIES
• NIKE (NKE) DOWNGRADED TO HOLD FROM BUY AT HSBC
• PBF ENERGY (PBF) DOWNGRADED TO SELL FROM NEUTRAL AT GOLDMAN SACHS
• PUBLIC STORAGE (PSA) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT BAIRD
• STONE ENERGY (SGY) DOWNGRADED TO NEUTRAL FROM BUY AT NATIONAL SECURITIES

 

US Equity Initiations

• AQUANTIA (AQ) INITIATED WITH A BUY AT NEEDHAM
• AQUANTIA (AQ) INITIATED WITH AN OUTPERFORM AT RAYMOND JAMES
• AQUANTIA (AQ) INITIATED WITH AN OVERWEIGHT AT BARCLAYS
• AQUANTIA (AQ) INITIATED WITH AN OVERWEIGHT AT MORGAN STANLEY
• ARES CAPITAL (ARCC) INITIATED WITH AN OUTPERFORM AT WEDBUSH
• BBX CAPITAL (BBX) INITIATED WITH A BUY AT B. RILEY FBR
• DENTSPLY SIRONA (XRAY) INITIATED WITH AN OVERWEIGHT AT STEPHENS
• HENRY SCHEIN (HSIC) INITIATED WITH AN EQUAL WEIGHT AT STEPHENS
• MGIC (MTG) RESUMED WITH AN OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
• MIRNA THERAPEUTICS (MIRN) INITIATED WITH AN OUTPERFORM AT WEDBUSH
• NEXA RESOURCES (NEXA) INITIATED WITH AN OUTPERFORM AT CREDIT SUISSE
• PACIFIC ETHANOL (PEIX) INITIATED WITH A BUY AT B. RILEY FBR
• RADIAN GROUP (RDN) INITIATED WITH A MARKET PERFORM AT WELLS FARGO
• SELECT ENERGY SERVICES (WTTR) RESUMED WITH AN OUTPERFORM AT WELLS FARGO
• SYNLOGIC (SYBX) INITIATED WITH AN OUTPERFORM AT WEDBUSH
• U.S. GOLD (USAU) INITIATED WITH A BUY AT ROTH CAPITAL
• VOYAGER THERAPEUTICS (VYGR) ASSUMED WITH AN OVERWEIGHT AT PIPER JAFFRAY