In European Equity Markets stocks ended little changed on Friday as the euro’s rally dimmed appetite for regional stocks but talk about possible cuts to European Central Bank stimulus boosted banks. The broader pan-European STOXX 600 benchmark edged 0.15 percent higher, while euro zone blue chips ended unchanged. After suffering four straight sessions in the red, European banks rose 0.9 percent, leading gainers in Europe. In the automobile sector, Volkswagen was up 0.5 percent after reports it was actively working on deals to sell non-core assets accounting for as much as 20 percent of the German carmaker’s annual revenues.
In Currency Markets the dollar edged higher on Monday on relief that Hurricane Irma weakened to a tropical storm and North Korea did not conduct a nuclear test over the weekend as feared. The dollar was up 0.95 percent against the Japanese yen. The single currency fell 0.41 percent to $1.1984, retreating from the 2-1/2-year high of $1.2108 hit on Friday. Sterling rose to a 3-1/2-week high against the euro on Monday, helped by speculation that the Bank of England may sound more hawkish on interest rates this week. The dollar index, which tracks the greenback against a basket of six major currencies, was 0.38 percent higher at 91.697.
In Commodities Markets oil prices fell on Monday on concerns that Hurricane Irma’s pounding of heavily populated areas of Florida could dent oil demand in the world’s top oil-consuming nation. Brent crude oil futures for November delivery were down 66 cents at $53.12 a barrel while benchmark U.S. West Texas Intermediate crude declined by 33 cents to $47.15. Gold prices remained on the downside on Monday, as concerns over the impact of Hurricane Irma and tensions with North Korea continued to subside. Spot gold fell 1.0 percent to $1,332.80 an ounce. U.S. gold futures fell 1.04 percent to $1,337.20 an ounce. Silver futures lost 28 cents or about 1.58 percent to $17.84 a troy ounce.
In US Equity Markets stocks rallied broadly on Monday as Irma was downgraded to a tropical storm, easing concerns about its impact on economic growth, and as North Korea refrained from any missile tests over the weekend as feared. The Dow Jones Industrial Average was up 0.99 percent, at 22,014.34 and the S&P 500 was up 0.82 percent, at 2,481.52. The Nasdaq Composite was up 0.89 percent, at 6,417.05. The technology sector jumped 1.31 percent. Apple rose 1.96 percent a day ahead of the launch of the new iPhone and provided the biggest boost to the Nasdaq and the S&P 500. The financial sector was up 1.45 percent. Goldman Sachs’ 1.8 percent rise led the Dow higher. The CBOE volatility index fell more than 11 percent to 10.80.
In Bond Markets U.S. Treasury yields rose on Monday after a generally quiet weekend unmarred by negative news out of North Korea, with investors looking ahead to this week’s auction of government debt. In mid-morning trading, benchmark 10-year Treasury yields rose to 2.111 percent, from 2.061 percent late on Friday. Ten-year yields earlier rose to 2.118 percent, a one-week high. U.S. 30-year bond yields rose to 2.724 percent, up from 2.680 percent the previous session.
European Equity Upgrades/Downgrades
- E.ON (EOAN GY) DOWNGRADED TO HOLD FROM BUY AT BERENBERG
- HANNOVER RE (HNR1 GY) UPGRADED TO HOLD FROM SELL AT HELVEA BAADER
- LINDE (LIN GY) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT MAINFIRST
- SNAM (SRG IM) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT MACQUARIE
- ITALGAS (IG IM) DOWNGRADED TO NEUTRAL FROM UNDERPERFORM AT MACQUARIE
- SUBSEA 7 (SUBC NO) RESUMED WITH A BUY RATING AT HSBC
- H&M (HMB SW) UPGRADED TO OUTPERFORM FROM UNDERPERFORM AT CREDIT SUISSE
- GREAT PORTLAND (GPOR LN) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
- BRITISH LAND (BLND LN) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK