In Asian Equity Markets Japan’s Nikkei index fell on Thursday, taking its cue from losses on Wall Street, with weakness seen in retail and real estate sectors. The Nikkei was down 0.37 percent at 22,806.28 at the end of morning trading. The broader Topix was down 0.17 percent at 1,818.14. MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 0.06 percent in thin trade. South Korea was dragged down 1.4 percent by weakness in Samsung, but Indonesia rose after Fitch upgraded the country’s credit rating.
In Currency Markets the dollar traded near a one-week high against the yen on Thursday, supported by a rise in U.S. bond yields and showing limited reaction after the Bank of Japan kept interest rates steady as expected. The dollar held steady at 113.40 yen, clinging near Wednesday’s high of 113.47 yen, its strongest level since Dec. 13. The euro held steady at $1.1866, having gained around 1 percent so far this week. Against the yen, the euro was little changed at 134.56 yen. On Wednesday, the euro had risen to as high as 134.76 yen, its strongest level against the yen since October 2015. Against a basket of currencies, the dollar was steady at 93.383.
In Commodities Markets oil prices fell on Thursday as rising U.S. output, fast approaching 10 million barrels per day (bpd), outweighed a decrease in American crude inventories. U.S. West Texas Intermediate crude futures were at $58.02 a barrel, down 7 cents from their last settlement. Brent crude futures were at $64.45 a barrel, down 11 cents. Both crude benchmarks gained around 1 percent during their previous sessions, lifted by official data showing a 6.5 million-barrel fall in U.S. crude inventories in the week to Dec. 15 to 436 million barrels, the lowest level since October 2015. Gold was underpinned by the softer dollar to stand at $1,267.31 an ounce.
In US Equity Markets the main indexes fell on Wednesday, pausing after recent record highs as both houses of Congress approved a long-anticipated tax overhaul. The Dow Jones Industrial Average fell 0.11 percent, to 24,726.65, the S&P 500 lost 0.08 percent, to 2,679.25 and the Nasdaq Composite fell 0.04 percent, to 6,960.96. The Dow Jones Transport Index jumped 0.9 percent to a record high close, helped by a rise in FedEx. The company’s shares were up 3.5 percent and earlier in the session touched a record high, a day after it reported a stronger-than-expected quarterly profit. The consumer staples index fell 0.4 percent, weighed by a 2.5-percent slide in Philip Morris International Inc.
In Bond Markets Japanese government bond prices fell across the board on Thursday, as Treasuries retreated on prospects of the U.S. tax overhaul leading to higher debt issuance and more aggressive rate hikes. The five-year JGB yield rose 1 basis point to minus 0.095 percent and the 10-year yield was 1.5 basis points higher at 0.065 percent, its highest since Nov. 1.
Economic Calendar
- 14:30 GMT+0 CAD CPI m/m
- 14:30 GMT+0 CAD Core Retail Sales m/m
- 14:30 GMT+0 US Final GDP q/q
US Equity Upgrades
- Aetna (AET) upgraded to Equal Weight from Underweight at Morgan Stanley
- AK Steel (AKS) upgraded to Buy from Neutral at Longbow
- Alcoa (AA) upgraded to Outperform from Neutral at Credit Suisse
- Biogen (BIIB) upgraded to Outperform from Neutral at Credit Suisse
- Brandywine Realty (BDN) upgraded to Overweight from Sector Weight at KeyBanc
- Healthcare Realty Trust (HR) upgraded to Sector Weight from Underweight at KeyBanc
- New Oriental Education (EDU) upgraded to Outperform from Underperform at CLSA
- Noble Energy (NBL) upgraded to Buy from Hold at Jefferies
- Nucor (NUE) upgraded to Buy from Neutral at Longbow
- Quorum Health (QHC) upgraded to Equal Weight from Underweight at Morgan Stanley
- RLJ Lodging Trust (RLJ) upgraded to Overweight from Sector Weight at KeyBanc
- Steel Dynamics (STLD) upgraded to Buy from Neutral at Longbow
- U.S. Steel (X) upgraded to Buy from Neutral at Longbow
- United Continental (UAL) upgraded to Buy from Neutral at Buckingham
- Varex Imaging (VREX) upgraded to Neutral from Underweight at JPMorgan
- Wendy’s (WEN) upgraded to Outperform from Neutral at Wedbush
US Equity Downgrades
- Century Aluminum (CENX) downgraded to Hold from Buy at Deutsche Bank
- DDR Corp. (DDR) downgraded to Sector Weight from Overweight at KeyBanc
- GDS Holdings (GDS) downgraded to Neutral from Outperform at Credit Suisse
- Gilead (GILD) downgraded to Neutral from Outperform at Credit Suisse
- HCA Healthcare (HCA) downgraded to Underweight from Equal Weight at Morgan Stanley
- Jack in the Box (JACK) downgraded to Hold from Buy at Jefferies
- Lamar Advertising (LAMR) downgraded to Sell from Neutral at Citi
- MercadoLibre (MELI) downgraded to Sell from Neutral at Citi
- National Health Investors (NHI) downgraded to Underweight from Sector Weight at KeyBanc
- Navistar (NAV) downgraded to Hold from Buy at Gabelli
- Spectra Energy Partners (SEP) downgraded to Equal Weight from Overweight at Barclays
- Tenet (THC) downgraded to Underweight from Equal Weight at Morgan Stanley
US Equity Initiations
- Acer Therapeutics (ACER) initiated with a Buy at H.C. Wainwright
- Advanced Drainage (WMS) initiated with an Equal Weight at Barclays
- Aramark (ARMK) initiated with a Buy at Stifel
- Assured Guaranty (AGO) assumed with an Outperform at Keefe Bruyette
- Audentes Therapeutics (BOLD) initiated with a Buy at H.C. Wainwright
- BioCryst (BCRX) initiated with an Equal Weight at Barclays
- Brookfield Business Partners (BBU) initiated with a Buy at Citi
- Cloudera (CLDR) initiated with a Buy at Drexel Hamilton
- G1 Therapeutics (GTHX) initiated with a Buy at BTIG
- Hartford Financial (HIG) initiated with a Neutral at Citi
- RGC Resources (RGCO) initiated with a Neutral at Janney Capital
- S&P Global (SPGI) initiated with a Hold at Stifel
- Tenaris (TS) initiated with an Overweight at Barclays
- Trade Desk (TDD) initiated with an Outperform at Wells Fargo
- Voyager Therapeutics (VYGR) initiated with a Buy at BTIG
- Weight Watchers (WTW) initiated with a Buy at B. Riley FBR
- Westlake Chemical Partners (WLKP) initiated with an Equal Weight at Barclays