In Asian Equity Markets Japan’s Nikkei index fell on Thursday as investors wasted little time taking profits in tech shares which rose the previous day after Apple posted strong quarterly earnings. The Nikkei lost 0.4 percent to 20,003.17 points by mid-morning, after rising 0.5 percent on Wednesday. MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 0.6 percent, with South Korea’s tech-heavy Kospi index on course to decrease 1.6 percent. Hong Kong’s Hang Seng Index edged down 0.48 percent, while the Shanghai Composite was off by just 0.01 percent.

 

In Currency Markets the dollar inched away from a 15-month low versus a basket of currencies on Thursday, but was still looking wobbly due to doubts about whether there will be another U.S. interest rate rise this year. The euro eased 0.1 percent to $1.1847, backing away from a 2-1/2-year high of $1.19105 set on Wednesday – the common currency’s highest level since January 2015. The dollar inched 0.1 percent lower against the yen to 110.64, moving back toward a low of 109.92 yen set earlier this week, which was its lowest in more than six weeks.  Sterling held steady ahead of the Bank of England’s interest rate decision due later on Thursday. The pound last changed hands at $1.3220. On Wednesday, it rose to $1.3250, its highest in nearly 11 months.

 

In Commodities Markets oil fell on Thursday as a rally that has pushed up prices by almost 10 percent since early last week lost momentum despite renewed signs of a gradually tightening U.S. market. Brent crude futures were trading down 0.4 percent, at $52.16 per barrel. U.S. West Texas Intermediate crude futures were at $49.40 per barrel, down 0.4 percent. U.S. crude prices held below $50 per barrel despite record gasoline demand of 9.84 million barrels per day (bpd) last week and a fall in commercial crude inventories in the week to July 28 of 1.5 million barrels to 481.9 million barrels, according to the U.S. EIA.  U.S. gold futures for December delivery fell 0.8 percent to $1,268.70 per ounce.

 

In US Equity Markets  the Dow climbed above the 22,000 mark for the first time on Wednesday, buoyed by Apple’s healthy quarterly iPhone sales, while weakness in other tech stocks held back the Nasdaq and S&P 500. The Dow Jones Industrial Average rose 0.24 percent to end at 22,016.24. The S&P 500 gained 0.05 percent to 2,477.57 and the Nasdaq Composite was flat at 6,362.65. Apple jumped 4.73 percent to a record high after the world’s largest publicly listed company reported strong results. AutoNation  fell 7.17 percent after the largest U.S. auto retail chain reported lower quarterly profits. Cardinal Health fell 8.20 percent after the drug distributor’s 2018 profit forecast missed analysts’ estimate.

 

In Bond Markets Japanese government bond prices were steady to slightly higher on Thursday, with the market drawing mild support from overnight gains in U.S. Treasuries and sagging Tokyo stocks. The five-year and 10-year JGB yields were flat at minus 0.065 percent and 0.070 percent, respectively, while the 30-year yield fell 0.5 basis point to 0.870 percent.

 

 

Economic Calendar

• 09:30 GMT+1 UK Services PMI
• 12:00 GMT+1 UK BOE Inflation Report
• 12:00 GMT+1 UK MPC Official Bank Rate Votes
• 12:00 GMT+1 UK Monetary Policy Summary
• 12:00 GMT+1 UK Official Bank Rate
• 12:30 GMT+1 UK BOE Gov Carney Speaks
• 13:30 GMT+1 US Unemployment Claims
• 15:00 GMT+1 US ISM Non-Manufacturing PMI

 

US Equity Upgrades

• AGIOS PHARMACEUTICALS (AGIO) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT LEERINK
• BLACK DIAMOND (BDE) UPGRADED TO BUY FROM HOLD AT STIFEL
• CRESTWOOD EQUITY (CEQP) UPGRADED TO BUY FROM HOLD AT STIFEL
• ILLUMINA (ILMN) UPGRADED TO EQUAL-WEIGHT FROM UNDERWEIGHT AT FIRST ANALYSIS
• PFIZER (PFE) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
• RESMED (RMD) UPGRADED TO BUY FROM NEUTRAL AT CITI
• ROYAL CARIBBEAN (RCL) UPGRADED TO NEUTRAL FROM SELL AT GOLDMAN SACHS

 

US Equity Downgrades

• ARTISAN PARTNERS (APAM) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT KEEFE BRUYETTE
• BIG 5 SPORTING (BGFV) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
• BURLINGTON STORES (BURL) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
• GREEN PLAINS PARTNERS (GPP) DOWNGRADED TO UNDERPERFORM FROM BUY AT BOFA/MERRILL
• LASALLE HOTEL (LHO) DOWNGRADED TO SELL FROM NEUTRAL AT GOLDMAN SACHS
• NEURODERM (NDRM) DOWNGRADED TO NEUTRAL FROM BUY AT ROTH CAPITAL
• PEBBLEBROOK HOTEL (PEB) DOWNGRADED TO SELL FROM NEUTRAL AT GOLDMAN SACHS
• PIONEER NATURAL (PXD) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
• REGULUS (RGLS) DOWNGRADED TO NEUTRAL FROM BUY AT CHARDAN
• RESMED (RMD) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL
• RESMED (RMD) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
• TEN LTD. (TNP) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
• ULTIMATE SOFTWARE (ULTI) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK

 

US Equity Initiations

• JABIL CIRCUIT (JBL) INITIATED WITH AN OVERWEIGHT AT JPMORGAN
• KOHL’S (KSS) ASSUMED WITH A BUY AT JEFFERIES
• PARK CITY GROUP (PCYG) INITIATED WITH A BUY AT LOOP CAPITAL
• SEQUANS (SQNS) INITIATED WITH AN OUTPERFORM AT BAIRD
• WAL-MART (WMT) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER