In Asian Equity Markets Japanese stocks edged up on Thursday as investors bought futures after the yen weakened in Asian trade, while a rise in index-heavyweights such as SoftBank supported sentiment. In midmorning trade, the Nikkei index edged up 0.5 percent to 19,849.10.  MSCI’s broadest index of Asia-Pacific stocks outside Japan advanced 0.7 percent, hitting its highest level since June 2015, and bringing its gains so far this year to about 17 percent. The gains were led by South Korean stocks which rose 1.0 percent to record highs. Hong Kong’s Hang Seng gained 0.8 percent to its highest level since July 2015 while Taiwanese stocks hit 17-year highs. Mainland Chinese stocks bounced back 0.3 percent.

 

In Currency Markets the dollar was on the defensive on Thursday after the Federal Reserve dialed down on some of the more hawkish policy expectations in the market, while the euro edged back up toward a 6-1/2-month high. The dollar was little changed at 111.635 yen,  pushed away from a one-week high of 112.130 scaled the previous day. The euro was 0.2 percent higher at $1.1240, making its way back toward the 6-1/2-month peak of $1.1268 touched on Tuesday. The Norwegian crown stood at 9.349 per euro for a gain of about 0.3 percent on the week.The Canadian dollar was at C$1.3405 per dollar after touching C$1.3402, its strongest since April 19. The Australian dollar was 0.1 percent higher at $0.7510.

 

In Commodities Markets oil prices rose by one percent ahead of an OPEC meeting on Thursday that is expected to extend output cuts into 2018, adding at least nine months to an initial six-month cut in the first half of this year. Brent crude futures were trading at $54.51 per barrel, up 1 percent from their last close. U.S. West Texas Intermediate crude futures were at $51.87, up 1 percent. Spot gold was nearly flat at $1,258.61 per ounce. U.S. gold futures were up 0.5 percent at $1,258.7 an ounce. Among other precious metals, silver was up 0.1 percent at $17.20 an ounce, while platinum was nearly unchanged at $944.20 an ounce. Palladium rose 0.3 percent at $765.25 an ounce.

 

In US Equity Markets  stocks ended up slightly on Wednesday, with the S&P 500 hitting a record high close, after minutes of the Federal Reserve’s latest meeting showed policymakers view a rate hike coming soon. The Dow Jones Industrial Average was up 0.36 percent, to 21,012.42, the S&P 500 gained 0.25 percent, to 2,404.39 and the Nasdaq Composite added 0.40 percent, to 6,163.02. Lowe’s fell  3 percent after the home improvement chain reported a lower-than-expected profit and comparable sales. Jewelry retailer Tiffany lost 8.7 percent after posting a surprise decrease in comparable sales. Signet Jewelers, which reports on Thursday, was down 7.2 percent.

 

In Bond Markets U.S. Treasury yields fell on Wednesday on investor relief after the Federal Reserve signaled a gradual approach on raising interest rates and winding down of its massive $4.5 trillion worth bond holdings. Benchmark 10-year Treasury note yield fell more than 2 basis points at 2.257 percent, while 30-year bond yield declined 2 basis points to 2.294 percent. Two-year yield fell to over 2 basis points at 1.298 percent.

 

 

Economic Calendar

• 09:30 GMT+1 UK Second Estimate GDP q/q
• 13:30 GMT+1 US Unemployment Claims

 

US Equity Upgrades

• AMEC FOSTER WHEELER (AMFW) UPGRADED TO OUTPERFORM FROM NEUTRAL AT MACQUARIE
• AUTOLIV (ALV) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
• BIOVERATIV (BIVV) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT CREDIT SUISSE
• DIANA SHIPPING (DSX) UPGRADED TO IN LINE FROM UNDERPERFORM AT EVERCORE ISI
• DSW (DSW) UPGRADED TO NEUTRAL FROM NEGATIVE AT SUSQUEHANNA
• GRUPO TELEVISA (TV) UPGRADED TO HOLD FROM REDUCE AT HSBC
• IPASS (IPAS) UPGRADED TO BUY FROM HOLD AT AEGIS
• NOVOCURE (NVCR) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
• NUCOR (NUE) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
• STEEL DYNAMICS (STLD) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
• TILLY’S (TLYS) UPGRADED TO BUY FROM NEUTRAL AT B. RILEY
• U.S. STEEL (X) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
• UNION BANKSHARES (UBSH) UPGRADED TO STRONG BUY FROM OUTPERFORM AT RAYMOND JAMES

 

US Equity Downgrades

• ACCENTURE (ACN) DOWNGRADED TO HOLD FROM BUY AT SUNTRUST
• AEGEAN MARINE (ANW) DOWNGRADED TO HOLD FROM BUY AT STIFEL
• AUTOZONE (AZN) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT STEPHENS
• BROOKFIELD RENEWABLE (BEP) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BMO CAPITAL
• BROWN FORMAN (BF.B) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
• CIENA (CIEN) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
• IMPERIAL OIL (IMO) DOWNGRADED TO NEUTRAL FROM OUTPERFORMER AT CIBC
• LIBERTY GLOBAL (LBTYA) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
• MOMO (MOMO) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
• NEWTEK BUSINESS SERVICES (NEWT) DOWNGRADED TO NEUTRAL FROM BUY AT COMPASS POINT
• OOMA (OOMA) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
• OOMA (OOMA) DOWNGRADED TO UNDERPERFORM FROM BUY AT BOFA/MERRILL
• SIGNET JEWELERS (SIG) DOWNGRADED TO NEUTRAL FROM BUY AT BUCKINGHAM
• T. ROWE PRICE (TROW) DOWNGRADED TO SELL FROM BUY AT UBS
• WHEELER REIT (WHLR) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT JMP SECURITIES
• ZIONS BANCORP (ZION) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN SACHS

 

US Equity Initiations

• AUTODESK (ADSK) INITIATED WITH AN OUTPERFORM AT BERNSTEIN
• EMERALD EXPOSITIONS EVENTS (EEX) INITIATED WITH A BUY AT CITI
• HASBRO (HAS) INITIATED WITH A BUY AT DA DAVIDSON
• HORTONWORKS (HDP) INITIATED WITH AN OUTPERFORM AT BERNSTEIN
• JAKKS PACIFIC (JAKK) INITIATED WITH A NEUTRAL AT DA DAVIDSON
• KINDRED BIOSCIENCES (KIN) INITIATED WITH AN OUTPERFORM AT FBR CAPITAL
• LAMB WESTON (LW) INITIATED WITH A STRONG BUY AT CL KING
• MATTEL (MAT) INITIATED WITH A BUY AT DA DAVIDSON
• MURPHY OIL (MUR) INITIATED WITH A BUY AT KLR GROUP
• RED HAT (RHT) INITIATED WITH A MARKET PERFORM AT BERNSTEIN
• SERVICENOW (NOW) INITIATED WITH AN OUTPERFORM AT BERNSTEIN
• SHAKE SHACK (SHAK) INITIATED WITH AN OVERWEIGHT AT PIPER JAFFRAY
• TABLEAU (DATA) INITIATED WITH AN OUTPERFORM AT BERNSTEIN
• TERADATA (TDC) INITIATED WITH AN UNDERPERFORM AT BERNSTEIN
• ZYMEWORKS (ZYME) INITIATED WITH A BUY AT CITI