In Asian Equity Markets Japan’s Nikkei index extended its strong rally to top a new 21-year peak on Thursday, ahead of a long weekend, with investors piling into miners and companies such as Honda Motor and Sony on robust earnings prospects. The Nikkei ended up 0.5 percent at 22,539.12 after reaching a high of 22,540.25, its best close since late June 1996. The broader Topix gained 0.4 percent to 1,794.08.  MSCI’s broadest index of Asia-Pacific stocks outside Japan inched up 0.1 percent, to be just a whisker from its highest since late 2007. Australia’s main index firmed 0.4 percent, while China’s blue chips were 0.5 percent lower.

 

In Currency Markets the dollar held steady versus a basket of currencies on Friday, as investors shifted their focus to U.S. jobs data, with President Donald Trump’s nomination of Federal Reserve Governor Jerome Powell to be the next Fed chair coming as no surprise. Against the yen, the dollar eased 0.1 percent to 114.00 yen, trading below a 3-1/2 month high of 114.45 yen that had been set last Friday. The euro held steady at $1.1659.  Sterling inched up 0.1 percent to $1.3070, after having tumbled 1.4 percent on Thursday. The BoE voted 7-2 to increase its benchmark Bank Rate to0.50 percent from 0.25 percent. The Australian dollar fell 0.4 percent to $0.7687, coming under pressure after data showed that retail sales were flat in September.

 

In Commodities Markets  oil prices edged up on Thursday, steadying near two-year highs as the outlook remained upbeat as OPEC-led supply cuts have tightened the market and drained inventories.  Brent crude settled up 0.2 percent, at $60.62 per barrel. The benchmark hit $61.70 on Wednesday, its highest intraday level since July 2015. U.S. crude ended 0.4 percent, higher at $54.54, almost 30 percent above its 2017-lows in June. Spot gold edged up 0.1 percent to $1,276.56 per ounce and was on track for its first weekly gain in three. In other precious metals, spot silver inched up 0.2 percent to $17.11 an ounce, platinum eased 0.4 percent, to $921.50 and palladium was up 0.3 percent to $999.33.

 

In US Equity Markets the Dow climbed to a record high on Thursday while losses in Facebook kept the S&P 500 and the Nasdaq in check as investors assessed the long-awaited tax cut plan unveiled by U.S. President Donald Trump’s fellow Republicans. The Dow Jones Industrial Average rose 0.35 percent, to 23,516.26, the S&P 500 gained 0.02 percent, to 2,579.85 and the Nasdaq Composite lost 0.02 percent, to 6,714.94. Facebook shares fell 2.0 percent as investors shrugged off strong quarterly results and worried about the social media company’s spending. Tesla Inc shares fell 6.8 percent after the carmaker pushed back its production target for its Model 3 sedan and reported its biggest quarterly loss ever.

 

In Bond Markets U.S. Treasuries were little changed on Thursday after President Donald Trump nominated Federal Reserve Governor Jerome Powell to head the Federal Reserve, as expected, and prices ended the day higher. Benchmark 10-year notes gained 7/32 in price to yield 2.35 percent, down from 2.38 percent on Wednesday. The yield curve between five-year notes and 30-year bonds flattened to as low as 82.1 basis points, the lowest level since late 2007.

 

 

Economic Calendar

• 10:30 GMT+0 UK Services PMI
• 13:30 GMT+0 CAD Employment Change
• 13:30 GMT+0 CAD Trade Balance
• 13:30 GMT+0 CAD Unemployment Rate
• 13:30 GMT+0 US Average Hourly Earnings m/m
• 13:30 GMT+0 US Non-Farm Employment Change
• 13:30 GMT+0 US Unemployment Rate
• 15:00 GMT+0 US ISM Non-Manufacturing PMI

 

US Equity Upgrades

• AMEDISYS (AMED) UPGRADED TO BUY FROM HOLD AT BENCHMARK
• AMEDISYS (AMED) UPGRADED TO BUY FROM NEUTRAL AT MIZUHO
• BILL BARRETT (BBG) UPGRADED TO OUTPERFORM FROM IN-LINE AT IMPERIAL CAPITAL
• BLUEBIRD BIO (BLUE) UPGRADED TO BUY FROM NEUTRAL AT BTIG
• CLEAN HARBORS (CLH) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT RAYMOND JAMES
• DEVON ENERGY (DVN) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT STEPHENS
• DOMINO’S PIZZA (DPZ) UPGRADED TO BUY FROM HOLD AT MAXIM
• EQUINIX (EQIX) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
• HEALTHSOUTH (HLS) UPGRADED TO BUY FROM NEUTRAL AT MIZUHO
• HOLLYFRONTIER (HFC) UPGRADED TO NEUTRAL FROM SELL AT GOLDMAN SACHS
• HORIZON TECHNOLOGY (HRZN) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT RAYMOND JAMES
• INTERCEPT (ICPT) UPGRADED TO NEUTRAL WITH $69 TARGET AT CANTOR FITZGERALD
• JUNO THERAPEUTICS UPGRADED TO BUY FROM HOLD AT SUNTRUST
• NEWPARK RESOURCES (NR) UPGRADED TO BUY FROM HOLD AT SUNTRUST
• RENAISSANCERE (RNR) UPGRADED TO BUY FROM NEUTRAL AT CITI
• SOUTHCROSS ENERGY PARTNERS (SXE) UPGRADED TO MARKET PERFORM AT RAYMOND JAMES
• U.S. STEEL (X) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT COWEN
• YELP (YELP) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL

 

US Equity Downgrades

• AMERICAN ASSETS TRUST (AAT) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL
• ARC DOCUMENT (ARC) DOWNGRADED TO NEUTRAL FROM BUY AT FBR CAPITAL
• BROOKFIELD RENEWABLE (BEP) DOWNGRADED TO NEUTRAL FROM OUTPERFORMER AT CIBC
• CAESARSTONE (CSTE) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JPMORGAN
• CRITEO (CRTO) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
• CRITEO (CRTO) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT COWEN
• ENVISION HEALTHCARE (EVHC) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT STEPHENS
• EPIZYME (EPZM) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC CAPITAL
• HABIT RESTAURANTS (HABT) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
• HABIT RESTAURANTS (HABT) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
• HOPE BANCORP (HOPE) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
• IMPERIAL OIL (IMO) DOWNGRADED TO UNDERWEIGHT FROM OVERWEIGHT AT BARCLAYS
• IMPINJ (PI) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT PIPER JAFFRAY
• NOW INC. (DNOW) DOWNGRADED TO NEUTRAL FROM POSITIVE AT SUSQUEHANNA
• OCLARO (OCLR) DOWNGRADED TO BUY FROM STRONG BUY AT NEEDHAM
• OCLARO (OCLR) DOWNGRADED TO HOLD FROM BUY AT CRAIG-HALLUM
• ORASURE (OSUR) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
• PAPA JOHN’S DOWNGRADED TO NEUTRAL FROM BUY AT BTIG
• SQUARE (SQ) DOWNGRADED TO HOLD FROM BUY AT STIFEL
• ZIMMER BIOMET (ZBH) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT PIPER JAFFRAY

 

US Equity Initiations

• HOLLYFRONTIER (HFC) REINSTATED WITH AN OVERWEIGHT AT BARCLAYS
• MICHAEL KORS (KORS) INITIATED WITH A POSITIVE AT SUSQUEHANNA
• TABULA RASA HEALTHCARE (TRHC) INITIATED WITH AN OVERWEIGHT AT FIRST ANALYSIS
• TAPESTRY (TPH) INITIATED WITH A POSITIVE AT SUSQUEHANNA