In Asian Equity Markets Japan’s Nikkei index was nearly flat on Wednesday morning after scaling more than two-year highs on the previous day, while investors stayed cautious before the U.S. Federal Reserve’s policy meeting which ends later in the day. The Nikkei was flat at 20,302.96 in midmorning trade, after rising 2.0 percent to hit the highest level since August 2015 on Tuesday supported by a weaker yen and hopes for a snap election. MSCI’s broadest index of Asia-Pacific stocks outside Japan stood little changed. Shanghai lost 0.2 percent while Hong Kong’s Hang Seng added 0.2 percent.

 

In Currency Markets the dollar edged up against a basket of currencies on Wednesday as investors awaited the outcome of the Federal Reserve’s meeting at which it was expected to announce plans to trim its $4.2 trillion in bond holdings. The U.S. currency was steady on the day against its Japanese counterpart at 111.56 yen, moving back toward an eight-week peak of 111.88 yen scaled overnight. The euro was also steady on the day, at $1.1990. The dollar index, which tracks the greenback against a basket of six major rivals, added 0.1 percent to 91.855, holding well above its more than 2-1/2 year low of 91.011 fell on Sept. 8.

 

In Commodities Markets oil prices rose on Wednesday after Iraq’s oil minister said OPEC and other crude producers were considering extending or even deepening a supply cut to curb a global glut, while a report showed a smaller-than-expected increase in U.S. inventories. U.S. WTI crude futures were up 0.7 percent, at $49.81 a barrel. Brent crude futures climbed 0.4 percent, to $55.37. Crude inventories rose by 1.4 million barrels in the week to Sept. 15 to 470.3 million, compared with expectations for an increase of 3.5 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 422,000 barrels, API said.  U.S. gold futures for December delivery were up 0.3 percent to $1,314.40 an ounce.

 

In US Equity Markets  the three major stock indexes edged higher on Tuesday, logging closing records, with financial stocks providing the biggest boost a day ahead of the Fed’s concluding statement from its two-day policy meeting. The Dow rose 0.18 percent, to 22,370.8. The S&P 500 gained 0.11 percent, to 2,506.65 and the Nasdaq Composite added 0.1 percent, to 6,461.32. The biggest U.S. telephone operators, Verizon and AT&T rose more than 2 percent, providing the second- and third-biggest individual stock boosts for the S&P. Shares of smaller wireless carrier T-Mobile rose 5.9 percent and Sprint jumped 6.8 percent, following a report they were in active merger talks.

 

In Bond Markets U.S. Treasury prices gained slightly on Tuesday but yields held within a tight range as investors waited on the conclusion of the Federal Reserve’s two-day policy meeting for new indications on whether an additional interest rate hike is likely this year. Benchmark 10-year notes were last up 3/32 in price to yield 2.22 percent, from 2.23 percent late on Monday. Treasury yields briefly rose on Tuesday after data showed that U.S. import prices recorded their biggest increase in seven months in August as the cost of petroleum rose and there were also signs of a pickup in underlying imported inflation.

 

 

Economic Calendar

• 09:30 GMT+1 UK Retail Sales m/m
• 15:30 GMT+1 US Crude Oil Inventories
• 19:00 GMT+1 US FOMC Economic Projections
• 19:00 GMT+1 US FOMC Statement
• 19:00 GMT+1 US Federal Funds Rate
• 19:30 GMT+1 US FOMC Press Conference
• 21:45 GMT+1 NZD GDP q/q

 

US Equity Upgrades

• GAP (GPS) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT CREDIT SUISSE
• MCKESSON (MCK) UPGRADED TO OUTPERFORM FROM NEUTRAL AT BAIRD
• MELCO RESORTS & ENTERTAINMENT (MLCO) UPGRADED TO BUY FROM NEUTRAL AT NOMURA INSTINET
• MICHAEL KORS (KORS) UPGRADED TO OUTPERFORM FROM PERFORM AT OPPENHEIMER
• NETAPP (NTAP) UPGRADED TO BUY FROM NEUTRAL AT UBS
• OLD NATIONAL BANCORP (ONB) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT RAYMOND JAMES
• QUIDEL (QDEL) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT PIPER JAFFRAY

 

US Equity Downgrades

• ACUITY BRANDS (AYI) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
• CHEMICAL FINANCIAL (CHFC) DOWNGRADED TO UNDERPERFORM AT BOENNING & SCATTERGOOD
• DIMENSION THERAPEUTICS (DMTX) DOWNGRADED TO SELL FROM NEUTRAL AT CITI
• ITRON (ITRI) DOWNGRADED TO HOLD FROM BUY AT CANACCORD
• KELLOGG (K) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT PIPER JAFFRAY
• LENNAR (LEN) DOWNGRADED TO NEUTRAL FROM BUY AT MIZUHO
• NIKE (NKE) DOWNGRADED TO NEUTRAL FROM POSITIVE AT SUSQUEHANNA
• ORBITAL ATK (OA) DOWNGRADED TO NEUTRAL FROM BUY AT CL KING
• SUPER MICRO COMPUTER (SMCI) DOWNGRADED TO NEUTRAL FROM POSITIVE AT SUSQUEHANNA
• SUPERNUS (SUPN) DOWNGRADED TO HOLD FROM BUY AT STIFEL
• TIME WARNER (TWX) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
• TSYS (TSS) DOWNGRADED TO HOLD FROM BUY AT STIFEL
• UNDER ARMOUR (UAA) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT WELLS FARGO

 

US Equity Initiations

• ACACIA COMMUNICATIONS (ACIA) INITIATED WITH A BUY AT MKM PARTNERS
• ALLSCRIPTS (MDRX) INITIATED WITH AN OUTPERFORM AT RBC CAPITAL
• AMERISOURCEBERGEN (ABC) INITIATED WITH A SECTOR PERFORM AT RBC CAPITAL
• ATHENAHEALTH (ATHN) INITIATED WITH A SECTOR PERFORM AT RBC CAPITAL
• BADGER METER (BMI) INITIATED WITH A HOLD AT STIFEL
• CARDINAL HEALTH (CAH) INITIATED WITH A SECTOR PERFORM AT RBC CAPITAL
• CERNER (CERN) INITIATED WITH A TOP PICK AT RBC CAPITAL
• CHARLES RIVER (CRL) INITIATED WITH A SECTOR PERFORM AT RBC CAPITAL
• CHESAPEAKE INITIATED (CHK) WITH AN IN-LINE AT IMPERIAL CAPITAL
• CIMAREX ENERGY (XEC) INITIATED WITH AN OUTPERFORM AT IMPERIAL CAPITAL
• CONTINENTAL RESOURCES (CLR) INITIATED WITH AN IN-LINE AT IMPERIAL CAPITAL
• CURTISS-WRIGHT (CW) INITIATED WITH A HOLD AT STIFEL
• CVS HEALTH (CVS) INITIATED WITH AN OUTPERFORM AT RBC CAPITAL
• ENSYNC (ESNC) INITIATED WITH A BUY AT ROTH CAPITAL
• EXPRESS SCRIPTS (ESRX) INITIATED WITH A SECTOR PERFORM AT RBC CAPITAL
• FARMLAND PARTNERS (FPI) INITIATED WITH A MARKET PERFORM AT RAYMOND JAMES
• GASTAR EXPLORATION (GST) INITIATED WITH AN IN-LINE AT IMPERIAL CAPITAL
• GULFPORT ENERGY (GPOR) INITIATED WITH AN OUTPERFORM AT IMPERIAL CAPITAL
• HENRY SCHEIN (HSIC) INITIATED WITH A SECTOR PERFORM AT RBC CAPITAL
• HUDSON PACIFIC (HPP) INITIATED WITH A BUY AT GOLDMAN SACHS
• INTUIT (INTU) INITIATED WITH AN OUTPERFORM AT WILLIAM BLAIR
• KILROY REALTY (KRC) INITIATED WITH A NEUTRAL AT GOLDMAN SACHS
• MEDIDATA (MDSO) INITIATED WITH A SECTOR PERFORM AT RBC CAPITAL
• MIRATI THERAPEUTICS (MRTX) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER
• NEW RELIC (NEWR) RESUMED WITH AN OVERWEIGHT AT KEYBANC
• PAMPA ENERGIA S.A. (PAM) INITIATED WITH AN EQUAL WEIGHT AT MORGAN STANLEY
• PATTERSON COMPANIES (PDCO) INITIATED WITH A SECTOR PERFORM AT RBC CAPITAL
• QUALITY SYSTEMS (QSII) INITIATED WITH AN UNDERPERFORM AT RBC CAPITAL
• QUINTILESIMS (Q) INITIATED WITH AN OUTPERFORM AT RBC CAPITAL
• RITE AID (RAD) INITIATED WITH A SECTOR PERFORM AT RBC CAPITAL
• RLJ LODGING TRUST (RLJ) INITIATED WITH A HOLD AT DEUTSCHE BANK
• SEALED AIR (SEE) REINSTATED WITH AN EQUAL WEIGHT AT BARCLAYS
• TESLA (TSLA) INITIATED WITH AN UNDERPERFORM AT JEFFERIES
• TRANSPORTADORA DE GAS DEL SUR SA (TGS)INITIATED WITH AN OVERWEIGHT AT MORGAN STANLEY
• TREEHOUSE (THS) REINSTATED WITH A NEUTRAL AT BOFA/MERRILL
• WALGREENS BOOTS ALLIANCE (WBA) INITIATED WITH AN OUTPERFORM AT RBC CAPITAL
• WATTS WATER (WTS) INITIATED WITH A BUY AT STIFEL