In Asian Equity Markets Japanese stocks rose on Friday morning on gains for most sectors after Wall Street climbed overnight, while Japan Display jumped on hopes that Apple may use liquid crystal technology on one of its new smartphones. The Nikkei 225 index advanced 1.0 percent to 22,715.31 in midmorning trade. The broader Topix gained 0.8 percent to 1,800.18, with all of its 33 subsectors in positive territory. Australian stocks put on 0.3 percent while MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 0.7 percent. In Greater China, the Shanghai Composite rose 0.21 percent and the Hang Seng Index picked up 0.87 percent.

 

In Currency Markets the dollar edged up on Friday, on track for a weekly gain against a basket of currencies, as the passage of a bill to temporarily extend U.S. government funding raised investors’ optimism that a tax reform bill would also pass. The U.S. currency cleared 113.00 yen to reach 113.34, while the euro touched a two-week low at $1.1763. Also on the radar are negotiations between the United Kingdom and Ireland on how to run their post-Brexit land border. British Prime Minister Theresa May was reported to be meeting European Union chief executive Jean-Claude Juncker in Brussels early Friday. Speculation about an agreement saw sterling rebound to $1.3492, having been as low as $1.3320 at one point on Thursday.

 

In Commodities Markets  oil prices were stable on Friday, held back by a strengthening U.S. dollar but supported by China’s relentless thirst for crude amid the OPEC-led supply cuts that have already tightened the market this year.  U.S. West Texas Intermediate crude futures were at $56.68 a barrel, virtually unchanged from their last settlement at $56.69. Brent crude futures were also little changed, at $62.21 a barrel, up just one cent. China’s crude oil imports rose to 37.04 million tonnes in November, or 9.01 million bpd, the second highest on record, data from the General Administration of Customs showed on Friday. Spot gold was up 0.2 percent at $1,248.86 an ounce and silver rose 0.3 percent to $15.77 an ounce.

 

In US Equity Markets stocks  rose on Thursday, buoyed by popular technology companies including Facebook and Alphabet, while shares of yoga pants seller Lululemon Athletica also worked up a sweat. The Dow Jones Industrial Average rose 0.29 percent to end at 24,211.48 points, while the S&P 500  gained 0.29 percent to 2,636.98. The Nasdaq Composite added 0.54 percent to 6,812.84. Lululemon  jumped 6.43 percent after the Canadian apparel maker reported a higher-than-expected profit and gave an upbeat holiday season forecast. General Electric increased about 0.3 percent after the industrial conglomerate said it was cutting 12,000 jobs at its global power business.

 

In Bond Markets Japanese government bond prices edged higher on Friday, with a lift from the Bank of Japan’s regular debt-buying operation offsetting negative pressure from weaker U.S. Treasuries. The benchmark 10-year yield was down 0.5 basis point at 0.045 percent. The yield curve flattened a touch as the super long sector fared well following the previous day’s well-received 30-year JGB auction. The 30-year yield fell 1 basis point to 0.820 percent.

 

 

Economic Calendar

• 10:30 GMT+0 UK Manufacturing Production m/m
• 14:30 GMT+0 US Average Hourly Earnings m/m
• 14:30 GMT+0 US Non-Farm Employment Change
• 14:30 GMT+0 US Unemployment Rate

 

US Equity Upgrades

• AK STEEL (AKS) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
• BROWN-FORMAN (BF.B) UPGRADED TO HOLD FROM SELL AT SOCIETE GENERALE
• COMMERCIAL METALS (CMC) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
• DAVITA (DVA) UPGRADED TO STRONG BUY FROM OUTPERFORM AT RAYMOND JAMES
• HYATT (H) UPGRADED TO BUY FROM NEUTRAL AT MKM PARTNERS
• LAM RESEARCH (LRCX) UPGRADED TO BUY FROM NEUTRAL AT NOMURA INSTINET
• LULULEMON (LULU) UPGRADED TO HOLD FROM SELL AT CANACCORD
• NAVIGATORS (NAVG) UPGRADED TO BUY FROM HOLD AT SANDLER O’NEILL
• SEACHANGE (SEAC) UPGRADED TO BUY FROM HOLD AT LAKE STREET
• SHAKE SHACK (SHAK) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT MORGAN STANLEY

 

US Equity Downgrades

• ARGAN (AGX) DOWNGRADED TO HOLD FROM BUY AT LAKE STREET
• BILL BARRETT (BBG) DOWNGRADED TO IN-LINE FROM OUTPERFORM AT IMPERIAL CAPITAL
• BROWN-FORMAN (BF.B) DOWNGRADED TO HOLD FROM BUY AT PIVOTAL RESEARCH
• CTRIP.COM (CTRP) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
• EXPEDIA (EXPE) DOWNGRADED TO NEUTRAL FROM BUY AT MKM PARTNERS
• PRICELINE (PCLN) DOWNGRADED TO NEUTRAL FROM BUY AT MKM PARTNERS
• RPC, INC. (RES) DOWNGRADED TO IN LINE FROM OUTPERFORM AT EVERCORE ISI
• SECUREWORKS (SCWX) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
• TOLL BROTHERS (TOL) DOWNGRADED TO OUTPERFORM FROM STRONG BUY AT RAYMOND JAMES
• YELP (YELP) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT PIPER JAFFRAY

 

US Equity Initiations

• 2U (TWOU) INITIATED WITH AN OUTPERFORM AT MACQUARIE
• AKEBIA (AKBA) INITIATED WITH A BUY AT BTIG
• AMAG PHARMACEUTICALS (AMAG) INITIATED WITH A NEUTRAL AT B. RILEY FBR
• BORGWARNER (BWA) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER
• CANCER GENETICS (CGIX) INITIATED WITH A BUY AT MAXIM
• CNOOC (CEO) INITIATED WITH A BUY AT NOMURA INSTINET
• CUMMINS (CMI) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER
• EMERGE ENERGY (EMES) INITIATED WITH A NEUTRAL AT B. RILEY FBR
• FAIRMOUNT SANTROL (FMSA) INITIATED WITH A NEUTRAL AT B. RILEY FBR
• HI-CRUSH PARTNERS (HCLP) INITIATED WITH A BUY AT B. RILEY FBR
• INSTRUCTURE (INST) INITIATED WITH AN OUTPERFORM AT MACQUARIE
• NEXTERA ENERGY PARTNERS (NEP) INITIATED WITH AN OUTPERFORM AT CREDIT SUISSE
• PETROCHINA (PTR) INITIATED WITH A BUY AT NOMURA
• SINOPEC (SNP) INITIATED WITH A NEUTRAL AT NOMURA
• SOGOU (SOGO) INITIATED WITH AN OVERWEIGHT AT JPMORGAN
• SYNNEX (SNX) INITIATED WITH A BUY AT SUNTRUST
• U.S. SILICA (SLCA) INITIATED WITH A BUY AT B. RILEY FBR
• WEC ENERGY (WEC) INITIATED WITH A NEUTRAL AT CREDIT SUISSE