In Asian Equity Markets Japan’s Nikkei index inched up on Tuesday as the market found its footing following the previous day’s fall, although the index was confined in a narrow range ahead of the U.S. Federal Reserve’s policy meeting. The Nikkei was up 0.05 percent at 19,987.25. The MSCI’s broadest index of Asia-Pacific stocks outside Japan edged up less than 0.1 percent. Australian stocks jumped 0.9 percent, clawing back all of Monday’s 0.6 percent loss. China’s bluechip CSI 300 index was down 0.2 percent and the Shanghai Composite was little changed. Hong Kong’s Hang Seng slightly advanced.

 

In Currency Markets the dollar languished near a 13-month low against a basket of currencies on Tuesday, with traders sceptical that this week’s U.S. Federal Reserve meeting would do much to alter the greenback’s recent weak trend. The euro edged up 0.1 percent to $1.1655, not far from a high of $1.1684 set on Monday, its strongest level in about 23 months. Against the yen, the dollar eased slightly to 111.07 yen. On Monday, the dollar fell as low as 110.625 yen, its lowest level since mid-June.  The dollar index, which measures the greenback against a basket of six major currencies, eased 0.1 percent to 93.916, trading within sight of Monday’s 13-month low of 93.823.

 

In Commodities Markets  oil prices extended gains on Tuesday after Saudi Arabia pledged to curb exports from next month and OPEC called on several members to boost compliance with output cuts to help rein in oversupply and tackle flagging prices.  Global benchmark Brent crude for September delivery was up 28 cents at $48.88 a barrel after settling up 1.1 percent. U.S. West Texas Intermediate futures were up 28 cents at $46.62. Spot gold was nearly unchanged at $1,255.32 per ounce. Silver prices climbed as much as 0.2 percent to $16.48 per ounce, after hitting their highest since July 3 at $16.59 on Monday. Platinum gained up to 0.8 percent to $933.10 per ounce. Palladium advanced as much as 0.8 percent to $855.00 per ounce.

 

In US Equity Markets  the Nasdaq hit a record high on Monday ahead of a big week of technology earnings reports, while the S&P 500 and the Dow industrials lagged behind as losses in healthcare heavyweight Johnson & Johnson took a toll. The Dow Jones Industrial Average fell 0.31 percent, to 21,513.17, the S&P 500 lost 0.11 percent, to 2,469.91 and the Nasdaq Composite added 0.36 percent, to 6,410.81.  Tech and financials were the only two of the 11 major S&P sectors to finish in positive territory. Johnson & Johnson shares ended down 1.7 percent, the biggest weight on the S&P 500 and the Dow. J&J faces discounted competition to its big-selling rheumatoid arthritis drug.

 

In Bond Markets Japanese government bond prices were steady to a touch firmer on Tuesday, with the yield curve flattening after a 40-year debt auction was well received by investors. The benchmark 10-year JGB yield was unchanged at 0.065 percent, while the 30-year yield and 40-year yield fell half a basis point to 0.860 percent and 1.065 percent, respectively.

 

 

Economic Calendar

• 15:00 GMT+1 US CB Consumer Confidence

 

US Equity Upgrades

• CATERPILLAR (CAT) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
• CMS ENERGY (CMS) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
• FIRST MIDWEST (FMBI) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT PIPER JAFFRAY
• FLOOR & DECOR (FND) UPGRADED TO OUTPERFORM FROM NEUTRAL AT WEDBUSH
• HUNTSMAN (HUN) UPGRADED TO OVERWEIGHT FROM SECTOR WEIGHT AT KEYBANC
• MICHAELS (MIK) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
• XEROX (XRX) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT BARCLAYS

 

US Equity Downgrades

• AECOM (ACM) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
• ATHENAHEALTH (ATHN) DOWNGRADED TO UNDERWEIGHT FROM EQUAL-WEIGHT AT FIRST ANALYSIS
• BOSTON BEER (SAM) DOWNGRADED TO SELL FROM NEUTRAL AT GOLDMAN SACHS
• CB&I (CBI) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
• CDW DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS
• CONSTELLATION BRANDS (STZ) DOWNGRADED TO NEUTRAL FROM CONVICTION BUY AT GOLDMAN SACHS
• FRANKLIN RESOURCES (BEN) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
• GENTEX (GNTX) DOWNGRADED TO HOLD FROM BUY AT CRAIG-HALLUM
• GOLDMAN SACHS (GS) DOWNGRADED TO NEUTRAL FROM BUY AT UBS
• HCP (HCP) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN SACHS
• HCP DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN SACHS
• MB FINANCIAL (MBFI) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT PIPER JAFFRAY
• NEOPHOTONICS (NPTN) DOWNGRADED TO OUTPERFORM FROM STRONG BUY AT RAYMOND JAMES
• NORTHWESTERN (NWE) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT CREDIT SUISSE
• PORTLAND GENERAL ELECTRIC (POR) DOWNGRADED TO SELL FROM HOLD AT WILLIAMS CAPITAL
• PPG (PPG) DOWNGRADED TO HOLD FROM BUY AT SUNTRUST
• PPG (PPG) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL

 

US Equity Initiations

• ABRAXAS PETROLEUM (AXAS) INITIATED WITH A BUY AT CANACCORD
• AILERON THERAPEUTICS (ALRN) INITIATED WITH A BUY AT BOFA/MERRILL
• AZURRX BIOPHARMA (AZRX) INITIATED WITH A BUY AT H.C. WAINWRIGHT
• BLUE APRON (APRN) INITIATED WITH A BUY AT CANACCORD
• BLUE APRON (APRN) INITIATED WITH A BUY AT GOLDMAN SACHS
• BLUE APRON (APRN) INITIATED WITH A BUY AT STIFEL
• BLUE APRON (APRN) INITIATED WITH A BUY AT SUNTRUST
• BLUE APRON (APRN) INITIATED WITH A MARKET PERFORM AT RAYMOND JAMES
• BLUE APRON (APRN) INITIATED WITH AN OUTPERFORM AT RBC CAPITAL
• BRIGHTHOUSE FINANCIAL (BHF) INITIATED WITH A NEUTRAL AT JPMORGAN
• CONCERT PHARMACEUTICALS (CNCE) INITIATED WITH A BUY AT H.C. WAINWRIGHT
• MERSANA THERAPEUTICS (MRSN) INITIATED WITH AN OUTPERFORM AT COWEN
• MERSANA THERAPEUTICS (MRSN) INITIATED WITH AN OVERWEIGHT AT JPMORGAN
• MICROSEMI (MSCC) INITIATED WITH AN OVERWEIGHT AT KEYBANC
• WILDHORSE RESOURCE (WRD) REINSTATED WITH AN OVERWEIGHT AT BARCLAYS
• WIX.COM (WIX) INITIATED WITH AN OVERWEIGHT AT KEYBANC