In Asian Equity Markets stocks were mostly up on Thursday after US Federal Reserve Chair Janet Yellen’s cautious testimony on Wednesday in the US while markets in China got a boost from estimate-beating trade data. MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 1.2 percent to its highest since May 2015. Australia’s main index jumped 1 percent, while South Korea rose 1.1 percent to a record after its central bank kept policy easy to support consumer spending. Japan’s Nikkei was restrained by a firmer yen and managed only a 0.15 percent gain. Sentiment got another boost when China reported upbeat data on exports and imports for June, helping the blue-chip CSI300 index up 0.4 percent.

 

In Currency Markets the dollar fell against its peers on Thursday after Federal Reserve Chair Janet Yellen did not sound as hawkish as many had anticipated, while the Canadian dollar stood near a 13-month high after its country’s central bank hiked interest rates for the first time since 2010. The euro edged up 0.2 percent to $1.1435, inching back towards a 14-month high of $1.1489 set on Wednesday. The Canadian dollar, also boosted by a rise in crude oil prices, stood at C$1.2739 per dollar after rallying more than 1 percent to C$1.2681 overnight, its strongest since June 2016. The Aussie, which has gained about 1 percent so far this week, advanced to a 13-day high of $0.7697.

 

In Commodities Markets oil prices were stable on Thursday as strong demand from China eased concerns of an ongoing fuel glut. Brent crude futures were at $47.75 per barrel, up 1 cent from their last close. West Texas Intermediate crude futures were at $45.48 per barrel, down 1 cent from the previous session’s close. China imported 212 million tonnes of crude oil, or 8.55 million barrels per day (bpd), in the first six months of the year, up 13.8 percent on the same period in 2016, customs data showed on Thursday. Crude inventories fell 7.6 million barrels in the week to July 7, to 495.35 million barrels. The decline was the biggest since the week ended Sept. 4.

 

In US Equity Markets the Dow rose to a record high close while U.S. stocks kept their upward momentum Wednesday following Federal Reserve Chair Janet Yellen’s congressional testimony to gradually raise interest rates. The Dow Jones Industrial Average rose 0.57 percent, to close at 21,532.14, a record high. The S&P 500 gained 0.73 percent, to 2,443.25 and the Nasdaq Composite added 1.10 percent, to 6,261.17. The rate-sensitive S&P 500 real estate index was among the strongest in the benchmark index, posting a 1.3 percent gain. An index of airline stocks was up 2.3 percent after the No. 1 U.S. airline, American Airlines Group Inc, reported quarterly results that beat expectations and its shares rose 4.2 percent.

 

In Bond Markets Japanese government bonds strengthened on Thursday, bolstered by solid demand at a 20-year JGB sale and underpinned by lower Treasury yields after remarks by the head of the U.S. Federal Reserve were not as hawkish as some had expected. The 10-year cash JGB yield edged down half a basis point to 0.080 percent, while the September 10-year JGB futures contract was up 0.15 point at 150.03. In the superlong zone, the 20-year JGB yield was down 2.5 basis points at 0.600 percent, and the 30-year JGB yield shed 3.5 basis points to 0.855 percent. The benchmark 10-year U.S. Treasury yield stood at 2.312 percent in Asian trading, below its close on Wednesday of 2.327 percent.

 

 

Economic Calendar

  • 13:30 GMT+1 US PPI m/m
  • 13:30 GMT+1 US Unemployment Claims
  • 15:00 GMT+1 US Fed Chair Yellen Testifies

 

US Equity Upgrades

  • COVANTA (CVA) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
  • DURECT (DRRX) UPGRADED TO BUY FROM HOLD AT STIFEL
  • ENLINK MIDSTREAM (ENLC) UPGRADED TO HOLD FROM UNDERPERFORM AT JEFFERIES
  • GRUBHUB (GRUB) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT COWEN
  • JAGGED PEAK ENERGY (JAG) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
  • NVIDIA (NVDA) UPGRADED TO BUY FROM HOLD AT SUNTRUST
  • PDF SOLUTIONS (PDFS) UPGRADED TO BUY FROM HOLD AT CRAIG-HALLUM
  • SOUTHWEST GAS (SWX) UPGRADED TO HOLD FROM UNDERPERFORM AT JEFFERIES
  • TARGA RESOURCES (TRGP) UPGRADED TO BUY FROM HOLD AT JEFFERIES
  • WESTPAC BANKING (WBK) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN SACHS
  • WILLIAMS PARTNERS (WPZ) UPGRADED TO BUY FROM HOLD AT JEFFERIES
  • ZIMMER BIOMET (ZBH) UPGRADED TO BUY FROM NEUTRAL AT GUGGENHEIM

 

US Equity Downgrades

  • FORUM ENERGY (FET) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS
  • FREEPORT MCMORAN (FCX) DOWNGRADED TO SELL FROM HOLD AT BERENBERG
  • HARLEY-DAVIDSON (HOG) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BERNSTEIN
  • INOTEK PHARMACEUTICALS (ITEK) DOWNGRADED TO HOLD FROM BUY AT CANACCORD
  • ITAU UNIBANCO (ITUB) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
  • KIMBERLY-CLARK (KMB) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
  • KONA GRILL (KONA) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
  • MAMMOTH ENERGY (TUSK) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS
  • MONSANTO (MON) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
  • NOVOCURE (NVCR) REMOVED FROM BEST IDEAS LIST AT WEDBUSH
  • PROPETRO HOLDING (PUMP) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS
  • RICE ENERGY (RICE) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
  • SUPERIOR ENERGY (SPN) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS

 

US Equity Initiations

  • ALTICE USA (ATUS) INITIATED WITH A BUY AT GUGGENHEIM
  • ANTHEM (ANTM) INITIATED WITH A NEUTRAL AT CREDIT SUISSE
  • BROOKFIELD RENEWABLE (BEP) INITIATED WITH A BUY AT TD SECURITIES
  • CHEESECAKE FACTORY (CAKE) INITIATED WITH A NEUTRAL AT NOMURA INSTINET
  • CONTANGO OIL & GAS (MCF) INITIATED WITH A BUY AT ROTH CAPITAL
  • CRACKER BARREL (CBRL) INITIATED WITH A NEUTRAL AT NOMURA INSTINET
  • CRYOPORT (CYRX) INITIATED WITH A BUY AT JANNEY CAPITAL
  • ELEVATE CREDIT (ELVT) INITIATED WITH A BUY AT MAXIM
  • ENOVA INTERNATIONAL (ENVA) INITIATED WITH A BUY AT MAXIM
  • FRANKLIN FINANCIAL NETWORK (FSB) INITIATED WITH A HOLD AT SANDLER ONEILL
  • GENERAL DYNAMICS (GD) INITIATED WITH A BUY AT BERENBERG
  • KORNIT DIGITAL (KRNT) INITIATED WITH A BUY AT CRAIG-HALLUM
  • MARATHON OIL (MRO) INITIATED WITH AN EQUAL WEIGHT AT STEPHENS
  • PROGENICS (PGNX) INITIATED WITH AN OVERWEIGHT AT CANTOR
  • RESTAURANT BRANDS (QSR) INITIATED WITH A BUY AT NOMURA INSTINET
  • TRIVAGO (TRVG) INITIATED WITH A MARKET PERFORM AT WELLS FARGO
  • WARRIOR MET COAL (HCC) INITIATED WITH A NEUTRAL AT MKM PARTNERS
  • YATRA (YTRA) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER

 

 

 

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