In Asian Equity Markets Japan’s Nikkei index edged up on Tuesday morning in choppy trade, with semiconductor equipment makers attracting buyers, while Mizuho Financial Group fell on dismal earnings. The Nikkei, which opened lower and traversed in positive and negative territory, was up 0.3 percent at 22,447.88. The broader Topix was flat at 1,783.63. MSCI’s broadest index of Asia-Pacific stocks outside Japan lost 0.1 percent after two sessions of declines, while Australia fell 0.8 percent. In Greater China, the Shanghai Composite lost 0.37 percent and the Hang Seng Index fell 0.02 percent.

 

In Currency Markets the dollar got support from higher U.S. Treasury yields in early Asian trading on Tuesday, while sterling arrested a recent slide, which followed concerns about Theresa May’s ability to stay on as British prime minister.  The euro was steady at $1.1670, holding well above last week’s a 3-1/2-month low of $1.1553. Sterling edged up 0.1 percent to $1.3122 after coming under pressure from political turmoil ahead of this week’s debate by British lawmakers about the government’s plan to leave the European Union. Against its Japanese counterpart, the dollar inched 0.1 percent higher to 113.70 yen, but remained below its eight-month high of 114.735 hit last week. The dollar index was steady on the day at 94.499.

 

In Commodities Markets oil prices fell on Tuesday as the prospect of further rises in U.S. output undermined ongoing OPEC-led production cuts aimed at tightening the market. Brent crude futures were at $62.94 per barrel, down 0.35 percent, from their last close. U.S. West Texas Intermediate crude was at $56.62 per barrel, down 0.25 percent. The U.S. government said on Monday U.S. shale production for December would rise for a 12th consecutive month, increasing by 80,000 bpd.  Spot gold was nearly unchanged at $1,277.39 per ounce. U.S. gold futures for December delivery fell 0.1 percent to $1,277.60. Silver fell 0.5 percent to $16.96 per ounce and platinum declined 0.4 percent to $928.55. Palladium rose 0.3 percent to $992.72 an ounce.

 

In US Equity Markets  stock indexes rose on Monday as a sharp decrease in General Electric shares was more than offset by gains in high dividend-paying sectors including consumer staples and utilities. The Dow Jones Industrial Average rose 0.07 percent, to 23,439.7, the S&P 500 gained 0.10 percent, to 2,584.84 and the Nasdaq Composite added 0.1 percent, to 6,757.60. General Electric  slashed its dividend by 50 percent and cut its profit forecast while unveiling a plan that narrowed its focus on aviation, power and healthcare. Shares of the industrial conglomerate fell 7.2 percent. Tyson Foods shares climbed 2.0 percent after the meat processor said low prices for livestock feed will help boost results again next year.

 

In Bond Markets U.S. Treasury two-year note yields hit a fresh nine-year high on Monday, as the yield curve resumed its flattening and investors priced in a 25-basis-point interest rate hike by the Federal Reserve in December. In afternoon trading, the 10-year Treasury yield was at 2.402 percent, up slightly from 2.4 percent late on Friday. The two-year yield hit a nine-year peak of 1.687 percent, up from 1.662 percent last Friday. U.S. 30-year yields, meanwhile, fell to 2.867 percent, from Friday’s 2.88 percent.

 

 

Economic Calendar

• 10:30 GMT+0 UK CPI y/y
• 11:00 GMT+0 EU ECB President Draghi Speaks
• 11:00 GMT+0 UK BOE Gov Carney Speaks
• 11:00 GMT+0 JPY BOJ Gov Kuroda Speaks
• 11:00 GMT+0 US Fed Chair Yellen Speaks
• 14:30 GMT+0 US PPI m/m

 

US Equity Upgrades

• AES CORP. (AES) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
• AIR PRODUCTS (APD) UPGRADED TO BUY FROM HOLD AT HSBC
• AUTODESK (ADSK) UPGRADED TO BUY FROM NEUTRAL AT GUGGENHEIM
• CHEFS’ WAREHOUSE (CHEF) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
• DELEK US (DK) UPGRADED TO STRONG BUY FROM OUTPERFORM AT RAYMOND JAMES
• DUN & BRADSTREET (DNB) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT BARCLAYS
• EXONE (XONE) UPGRADED TO BUY FROM HOLD AT CANACCORD
• J.M. SMUCKER (SJM) UPGRADED TO POSITIVE FROM NEUTRAL AT SUSQUEHANNA
• NVIDIA (NVDA) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT BMO CAPITAL
• PRAXAIR (PX) UPGRADED TO BUY FROM HOLD AT ARGUS
• SCORPIO TANKERS (STNG) UPGRADED TO BUY FROM NEUTRAL AT UBS
• TD AMERITRADE (AMTD) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK
• TERADATA (TDC) UPGRADED TO BUY FROM HOLD AT SUMMIT REDSTONE
• TIME WARNER (TWX) UPGRADED TO BUY FROM NEUTRAL AT ROSENBLATT
• VOYA FINANCIAL (VOYA) UPGRADED TO BUY FROM HOLD AT SANDLER O’NEILL

 

US Equity Downgrades

• AMTRUST (AFSI) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT JMP SECURITIES
• CABLE ONE (CABO) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JPMORGAN
• CALATLANTIC (CAA) DOWNGRADED TO NEUTRAL FROM BUY AT MIZUHO
• CIMAREX ENERGY (XEC) DOWNGRADED TO NEUTRAL FROM POSITIVE AT SUSQUEHANNA
• COCA-COLA EUROPEAN PARTNERS (CCE) DOWNGRADED TO NEGATIVE FROM NEUTRAL AT SUSQUEHANNA
• ELDORADO GOLD (EGO) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
• EQUIFAX (EFX) DOWNGRADED TO HOLD FROM BUY AT STIFEL
• EXACT SCIENCES (EXAS) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
• FIS (FIS) DOWNGRADED TO SECTOR WEIGHT FROM OVERWEIGHT AT KEYBANC
• GGP (GGP) DOWNGRADED TO IN LINE FROM OUTPERFORM AT EVERCORE ISI
• GILEAD (GILD) DOWNGRADED TO HOLD FROM BUY AT ARGUS
• GREEN DOT (GDOT) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
• MALLINCKRODT (MNK) DOWNGRADED TO NEUTRAL FROM BUY AT UBS
• QUINTILESIMS (Q) DOWNGRADED TO SECTOR WEIGHT FROM OVERWEIGHT AT KEYBANC
• SEQUENTIAL BRANDS (SQBG) DOWNGRADED TO NEUTRAL FROM BUY AT ROTH CAPITAL
• TEVA (TEVA) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JPMORGAN

US Equity Initiations

• AVEO ONCOLOGY (AVEO) INITIATED WITH A BUY AT B. RILEY FBR
• CANADIAN NATIONAL (CNI) INITIATED WITH A BUY AT GOLDMAN SACHS
• CSX (CSX) INITIATED WITH A SELL AT GOLDMAN SACHS
• FEDEX (FDX) INITIATED WITH A BUY AT GOLDMAN SACHS
• MONGODB (MDB) INITIATED WITH A BUY AT CANACCORD
• MONGODB (MDB) INITIATED WITH A BUY AT STIFEL
• MONGODB (MDB) INITIATED WITH A MARKET PERFORM AT JMP SECURITIES
• MONGODB (MDB) INITIATED WITH AN EQUAL WEIGHT AT MORGAN STANLEY
• MONGODB (MDB) INITIATED WITH AN OVERWEIGHT AT BARCLAYS
• NETSCOUT (NTCT) INITIATED WITH AN OVERWEIGHT AT PIPER JAFFRAY
• PARTY CITY (PRTY) ASSUMED WITH AN OVERWEIGHT AT JPMORGAN
• REPLIGEN (RGEN) INITIATED WITH A BUY AT CL KING
• UNION PACIFIC (UNP) INITIATED WITH A SELL AT GOLDMAN SACHS
• UPS (UPS) INITIATED WITH A CONVICTION BUY AT GOLDMAN SACHS
• XPO LOGISTICS (XPO) INITIATED WITH A BUY AT GOLDMAN SACHS