In Asian Equity Markets Japan’s Nikkei index edged up on Friday in choppy trade, in reach of posting its best daily winning streak in more than five decades, as a weaker yen helped stocks pare earlier losses. The Nikkei opened 0.3 percent lower but trimmed its earlier losses. The broader Topix was flat at 1,730.58. MSCI’s broadest index of Asia-Pacific stocks outside Japan, which scaled a 10-year peak on Tuesday, was up 0.3 percent, but still down slightly for the week. In Greater China, the Shanghai Composite rose 0.05 percent, while the Hang Seng Index gained 0.98 percent.

 

In Currency Markets the dollar rose broadly on Friday, bolstered by increased optimism about the prospects for U.S. tax reforms, while the New Zealand dollar hit five-month lows, hampered by uncertainty over economic policies under a new government. The dollar rose 0.5 percent on the day to 113.14 yen, having risen to as high as 113.315 yen at one point, its strongest level since Oct. 6. The euro fell 0.3 percent to $1.1818, while sterling shed 0.4 percent to $1.3107.  The New Zealand dollar sank to a five-month low on concerns the new Labour coalition will take a harder stance on immigration and foreign investment than the outgoing center right government. The New Zealand dollar fell to as low as $0.6971 at one point, its lowest level since May 22.

 

In Commodities Markets  oil prices edged up on Friday, supported by signs of tightening supply and demand fundamentals, although a warning about excessive China economic optimism still weighed somewhat on markets.  Brent crude futures were at $57.39, up 0.28 percent from their last close. U.S. West Texas Intermediate crude futures were at $51.47 per barrel, up 0.35 percent. U.S. commercial crude oil stocks fell 15 percent from their March records, to 456.5 million barrels, below levels seen last year. Spot gold had declined by 0.4 percent to $1,284.60 an ounce. Silver and platinum both fell 0.1 percent each to $17.17 an ounce and $920.80 an ounce. Palladium was up 0.5 percent at $963.23 an ounce.

 

In US Equity Markets  the Dow and S&P 500 eked out record closing highs on Thursday, turning higher at the last minute after a Politico report that Federal Reserve Governor Jerome Powell is the leading candidate for the nominee for Fed chair. The Dow Jones Industrial Average rose 0.02 percent, to end at 23,163.04, the S&P 500 gained 0.03 percent, to 2,562.1 and the Nasdaq Composite fell 0.29 percent, to 6,605.07. United Airlines lost 12.1 percent, weighing on other airlines stocks after the third-largest U.S. carrier’s profit fell due to flight cancellations during the hurricane season. American Airlines  fell 1 percent. Shares of eBay were down 1.8 percent a day after it reported results.

 

In Bond Markets U.S. Treasury yields fell on Thursday as U.S. stock prices stalled near record highs and on a report U.S. President Donald Trump is leaning to nominate someone who is seen unlikely to change the Federal Reserve’s current easy policy stance. Benchmark 10-year Treasury yields were down 2 basis points at 2.316 percent, retreating from a one-week high of 2.352 percent on Wednesday. The two-year Treasury note yield was down 2.4 basis points at 1.539 percent after reaching 1.571 percent, the highest since October 2008.

 

 

Economic Calendar

• 13:30 GMT+1 CAD CPI m/m
• 13:30 GMT+1 CAD Core Retail Sales m/m

 

US Equity Upgrades

• ADOBE (ADBE) UPGRADED TO HOLD FROM SELL AT PIVOTAL RESEARCH
• ANGI HOMESERVICES (ANGI) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
• AQUA AMERICA (WTR) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
• GRAINGER (GWW) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT ATLANTIC EQUITIES
• HALCON RESOURCES (HK) UPGRADED TO BUY FROM ACCUMULATE AT JOHNSON RICE
• MERCER (MERC) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL

 

US Equity Downgrades

• ALLERGAN (AGN) DOWNGRADED TO NEUTRAL FROM BUY AT MIZUHO
• ALLETE (ALE) DOWNGRADED TO SECTOR WEIGHT FROM OVERWEIGHT AT KEYBANC
• BENCHMARK ELECTRONICS (BHE) DOWNGRADED TO HOLD FROM BUY AT NEEDHAM
• ERICSSON (ERIC) DOWNGRADED TO UNDERPERFORM AT COWEN
• GRAINGER (GWW) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
• HAIN CELESTIAL (HAIN) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BMO CAPITAL
• KB HOME (KBH) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT WEDBUSH
• MAA (MAA) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT JMP SECURITIES
• MAZOR ROBOTICS (MZOR) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
• NIKE (NKE) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN SACHS
• PRIMERICA (PRI) DOWNGRADED TO HOLD FROM BUY AT SUNTRUST
• SONIC AUTOMOTIVE (SAH) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT BOFA/MERRILL
• SPRINT (S) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT MACQUARIE
• SUPERVALU (SVU) DOWNGRADED TO NEUTRAL FROM BUY AT NORTHCOAST

 

US Equity Initiations

• BAKER HUGHES (BHGE) INITIATED WITH A NEUTRAL AT UBS
• DIAMOND OFFSHORE (DO) INITIATED WITH A HOLD AT HSBC
• EIGER BIOPHARMACEUTICALS (EIGR) INITIATED WITH A BUY AT ROTH CAPITAL
• ENSCO (ESV) INITIATED WITH A BUY AT HSBC
• EVOKE PHARMA (EVOK) REINSTATED WITH A BUY AT FBR CAPITAL
• JAZZ PHARMACEUTICALS (JAZZ) INITIATED WITH A BUY AT FBR CAPITAL
• NOBLE CORP. (NE) INITIATED WITH A BUY AT HSBC
• NORTHERN DYNASTY (NAK) INITIATED WITH A BUY AT H.C. WAINWRIGHT
• REDFIN (RDFN) INITIATED WITH AN OUTPERFORM AT WILLIAM BLAIR
• RLJ LODGING TRUST (RLJ) INITIATED WITH A HOLD AT SUNTRUST
• ROWAN COMPANIES (RDC) INITIATED WITH A BUY AT HSBC
• SHIRE (SHPG) INITIATED WITH A BUY AT FBR CAPITAL
• SUPERNUS (SUPN) INITIATED WITH A BUY AT FBR CAPITAL
• TERRAFORM POWER (TERP) REINSTATED WITH A NEUTRAL AT JPMORGAN
• TRANSOCEAN (RIG) INITIATED WITH A HOLD AT HSBC
• WAYFAIR (W) INITIATED WITH A BUY AT MKM PARTNERS