In Asian Equity Markets Japan’s Nikkei index posted the biggest daily decline since November on Tuesday as uncertainty over U.S. President Donald Trump’s policies weighed on investor sentiment. The Nikkei fell 1.7 percent to 19,041.34 points, posting the biggest daily percentage fall since Nov. 9, after Trump was elected as U.S. president. The broader Topix declined 1.4 percent at 1,521.67, while the JPX-Nikkei Index 400 shed 1.5 percent to 13,642.35. MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 0.4 percent. The Australian index, S&P/ASX 200, eased 0.59 percent.

In Currency Markets the dollar fell against the yen on Tuesday, as the Japanese currency benefited from its safe-haven status, with the appetite for risk curbed by U.S. President Donald Trump’s hardening defence over his immigration policies. The dollar was down 0.2 percent at 113.570 yen after falling to as low as 113.240. The euro was flat at $1.0696. The pound was up 0.2 percent at $1.2516, but still within reach of a near one-week low of $1.2466 plumbed overnight on nervousness ahead of Thursday’s Bank of England policy meeting. The Australian dollar added 0.15 percent to $0.7564 and the New Zealand dollar was virtually flat at $0.7288, staying in proximity of an 11-week peak of $0.7314 scaled last week.

In Commodities Markets oil prices fell on Tuesday as rising U.S. drilling activity offset efforts by OPEC and other producers to cut output in a move to prop up the market. Brent crude futures were trading at $55.10 per barrel, down 13 cents from their last close. U.S. WTI futures were at $52.41 a barrel, down 22 cents from their previous settlement. The falls reflect a sentiment that efforts led by the OPEC to cut output by almost 1.8 barrel per day (bpd) in order to end overproduction were not big enough to offset rising U.S. drilling. Spot gold had risen 0.6 percent to $1,202.08 per ounce. In other precious metals, spot silver was up 0.4 percent at $17.17 per ounce, while platinum edged up 0.6 percent to $990.70. Palladium rose 0.7 percent to $745.85 per ounce.

In US Equity Markets major stock indexes posted their largest fall so far in 2017 on Monday as investors worried that a curb on immigration ordered by Donald Trump was a reminder that some of the U.S. president’s policies are not market-friendly. The Dow Jones Industrial Average fell 0.61 percent, to close at 19,971.13, the S&P 500 lost 0.60 percent, to 2,280.9 and the Nasdaq Composite fell 0.83 percent, to 5,613.71. The Russell 2000 index of small and mid-cap companies fell 1.3 percent Monday, giving back all of January’s gains. Airline stocks fell, with American Airlines down 4.4 percent and United Continental down 3.6 percent. Delta, which suffered a systems outage that grounded about 280 flights between Sunday and Monday, fell 4.1 percent.

In Bond Markets Japanese government bonds mostly fell on Tuesday, with only some superlong maturities inching up, as investors braced for the Bank of Japan’s announcement of its monthly JGB-buying plans for February. The 10-year JGB yield added half a basis point (bp) to 0.085 percent, and 10-year JGB futures fell 0.05 point to 149.88. But the 30-year JGB yield shed 1 bp to 0.825 percent , while the 40-year yield also fell 1 bp to 0.980 percent.

Economic Calendar
09:00 GMT+0 EU ECB President Draghi Speaks
14:30 GMT+0 CAD GDP m/m
16:00 GMT+0 US CB Consumer Confidence
22:45 GMT+0 NZD Employment Change q/q
22:45 GMT+0 NZD Unemployment Rate
23:45 GMT+0 CAD BOC Gov Poloz Speaks

US Equity Upgrades
AMERICAN EXPRESS (AXP) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE
CBL & ASSOCIATES (CBL) UPGRADED TO NEUTRAL FROM SELL AT CITI
CLOUD PEAK (CLD) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
DDR CORP. (DDR) UPGRADED TO BUY FROM NEUTRAL AT CITI
DICK’S SPORTING (DKS) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN
DISNEY (DIS) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
GOL LINHAS (GOL) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
HANCOCK HOLDING (HBHC) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
HIBBETT SPORTS (HIBB) UPGRADED TO NEUTRAL FROM SELL AT GOLDMAN
HORTONWORKS (HDP) UPGRADED TO BUY FROM NEUTRAL AT MIZUHO
MADISON SQUARE GARDEN (MSG) UPGRADED TO OVERWEIGHT AT MORGAN STANLEY
MERCADOLIBRE (MELI) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
MIDCOAST ENERGY (MEP) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT CREDIT SUISSE
NATIONAL GRID (NGG) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
NETAPP (NTAP) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN
NEXTERA ENERGY PARTNERS (NEP) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK
NOBLE CORP. (NE) UPGRADED TO BUY FROM HOLD AT JEFFERIES
TREEHOUSE (THS) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL

US Equity Downgrades
AIR PRODUCTS (APD) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
ARRAY BIOPHARMA (ARRY) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT LEERINK
BARCLAYS (BCS) DOWNGRADED TO SELL FROM HOLD AT BERENBERG
COLGATE-PALMOLIVE (CL) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
COLUMBIA SPORTSWEAR (COLM) DOWNGRADED TO HOLD FROM BUY AT STIFEL
COSTAMARE (CMRE) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT CREDIT SUISSE
ENBRIDGE ENERGY (EEP) DOWNGRADED TO NEUTRAL FROM BUY AT MIZUHO
HIMAX (HIMX) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
M.D.C. HOLDINGS (MDC) DOWNGRADED TO SELL FROM HOLD AT EVERCORE ISI
MB FINANCIAL (MBFI) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT KEEFE BRUYETTE
MERITAGE HOMES (MTH) DOWNGRADED TO HOLD FROM BUY AT EVERCORE ISI
PAYCOM (PAYC) DOWNGRADED TO SECTOR WEIGHT FROM OVERWEIGHT AT PACIFIC CREST
REGULUS (RGLS) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
SELECT MEDICAL (SEM) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
SYMANTEC (SYMC) REINSTATED WITH A NEUTRAL FROM BUY AT CITI
TEMPUR SEALY (TPX) DOWNGRADED TO UNDERPERFORM FROM OUTPERFORM AT RAYMOND JAMES

US Equity Initiations
CASTLIGHT HEALTH (CSLT) INITIATED WITH A MARKET PERFORM AT COWEN
STANLEY BLACK & DECKER (SWK) INITIATED WITH AN OVERWEIGHT AT BARCLAYS
VAREX (VREX) IMAGING INITIATED WITH A NEUTRAL AT JPMORGAN