In Asian Equity Markets Japan’s Nikkei index rose on Thursday, taking back some ground lost in the previous session as investors sought bargains after the benchmark index skidded its most in 8-1/2 months The Nikkei ended morning trade up 1.27 percent, or 280.70 points, at 22,457.74. The broader Topix rose 1.1 percent to 1,785.26, while the JPX-Nikkei Index 400 rose 1.1 percent to 15,816.14. MSCI’s broadest index of Asia-Pacific stocks outside Japan was barely changed. In Greater China, the Shanghai Composite fell 0.59 percent and the Hang Seng Index eased 0.01 percent.

 

In Currency Markets the dollar edged up against peers on Thursday, shaking off earlier losses versus the yen, supported by signs that investors’ risk appetites were improving again and by optimism on U.S. tax reforms. The greenback was 0.1 percent higher at 112.380 yen after falling by 0.25 percent overnight. The euro was steady at $1.1803 after falling 0.25 percent overnight, when it hit a two-week low of $1.1780. The loonie was effectively flat at C$0.9895 per dollar after retreating 0.8 percent the previous day. The Aussie was 0.2 percent lower at $0.7548, while the kiwi last traded at $0.6859, down 0.3 percent on the day. The dollar index was little changed at 93.543 after rising to 93.650 overnight, its highest since Nov. 22.

 

In Commodities Markets oil prices inched higher on Thursday after a data report showed a decrease in U.S. crude inventories, but rising gasoline stocks and crude production weighed on the market.  U.S. West Texas Intermediate crude futures were at $56.18 a barrel, up 0.4 percent from their last settlement. Brent crude futures were at $61.49 a barrel, up 0.44 percent. Traders said the higher prices came as U.S. crude oil inventories fell by 5.6 million barrels in the week to Dec. 1, to 448.1 million barrels, putting stocks below seasonal levels in 2015 and 2016. Spot gold was nearly unchanged at $1,263.21 an ounce and silver fell 0.1 percent to $15.95 an ounce. Copper traded at $6,578 a tonne, up 0.4 percent for the day.

 

In US Equity Markets  the S&P 500 fell a tiny bit on Wednesday, with Microsoft and other technology stocks making modest gains but not quite offsetting losses in energy shares after oil prices fell more than 2 percent. The Dow Jones Industrial Average ended down 0.16 percent at 24,140.91 while the S&P 500  lost 0.01 percent to 2,629.27. The Nasdaq Composite added 0.21 percent to 6,776.38. Shares of Microsoft, Facebook and Google-parent Alphabet rose more than 1 percent as the technology sector recovered from a recent selloff.  Home Depot fell 1.12 percent after the home improvement retailer announced a $15 billion share repurchase plan. H&R Block rose 10.27 percent after the tax preparation service provider reported better-than-expected revenue.

 

In Bond Markets Japanese government bond prices edged down on Thursday as risk aversion eased and dulled investor demand for safe-haven debt. The benchmark 10-year JGB yield rose half a basis point to 0.055 percent. The 20-year yield was also half a basis point higher at 0.580 percent. The super-long JGB sector fared better thanks to a well-received 30-year bond auction. The 30-year yield fell 0.5 basis point to 0.830 percent following the strong auction results.

 

 

Economic Calendar

• 14:30 GMT+0 US Unemployment Claims
• 17:00 GMT+0 EU ECB President Draghi Speaks

 

US Equity Upgrades

• AIG (AIG) UPGRADED TO HOLD FROM SELL AT DEUTSCHE BANK
• ANTERO MIDSTREAM GP (AMGP) UPGRADED TO BUY FROM NEUTRAL AT CITI
• BROWN & BROWN (BRO) UPGRADED TO BUY FROM HOLD AT SUNTRUST
• CARNIVAL (CCL) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT MORGAN STANLEY
• ECOPETROL (EC) RESUMED WITH A NEUTRAL FROM SELL AT CITI
• EXPRESS SCRIPTS (ESRX) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT BERNSTEIN
• JACK HENRY (JKHY) UPGRADED TO IN LINE FROM UNDERPERFORM AT EVERCORE ISI
• L3 TECHNOLOGIES (LLL) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
• NATIONAL GRID (NGG) UPGRADED TO HOLD FROM SELL AT DEUTSCHE BANK
• NOVO NORDISK (NVO) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
• PATTERN ENERGY (PEGI) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN SACHS
• REGAL ENTERTAINMENT (RGC) UPGRADED TO NEUTRAL FROM SELL AT MOFFETTNATHANSON
• TERNIUM (TX) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY

 

US Equity Downgrades

• AETNA (AET) DOWNGRADED TO HOLD FROM BUY AT ARGUS
• AUTOZONE (AZO) DOWNGRADED TO NEUTRAL FROM BUY AT GUGGENHEIM
• BLOOMIN’ BRANDS (BLMN) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
• CHEMOURS (CC) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN SACHS
• EDISON INTERNATIONAL (EIX) DOWNGRADED TO NEUTRAL FROM BUY AT MIZUHO
• HENRY SCHEIN (HSIC) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
• IRONWOOD (IRWD) DOWNGRADED TO NEUTRAL FROM BUY AT MIZUHO
• MARSH & MCLENNAN (MMC) DOWNGRADED TO NEUTRAL FROM BUY AT UBS
• NAVIGATORS (NAVG) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE
• NOVARTIS (NVS) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT BOFA/MERRILL
• PATTERSON COS (PDCO) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
• REGAL ENTERTAINMENT (RGC) DOWNGRADED TO HOLD FROM BUY AT LOOP CAPITAL
• REGAL ENTERTAINMENT (RGC) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT MACQUARIE
• REGAL ENTERTAINMENT (RGC) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC CAPITAL
• SANOFI (SNY) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL
• TIMKENSTEEL (TMST) DOWNGRADED TO UNDERWEIGHT FROM SECTOR WEIGHT AT KEYBANC
• TOLL BROTHERS (TOL) DOWNGRADED TO SECTOR WEIGHT FROM OVERWEIGHT AT KEYBANC
• VENATOR MATERIALS (VNTR) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN SACHS

 

US Equity Initiations

• ACTINIUM PHARMACEUTICALS (ATNM) INITIATED WITH A BUY AT B. RILEY FBR
• ALIBABA (BABA) INITIATED WITH A POSITIVE AT SUSQUEHANNA
• ALPHABET (GOOG) INITIATED WITH AN OUTPERFORM AT EVERCORE ISI
• AMAZON.COM (AMZN) INITIATED WITH AN OUTPERFORM AT EVERCORE ISI
• APPLIED MATERIALS (AMAT) INITIATED WITH AN OUTPERFORM AT WELLS FARGO
• APTIV (APTV) INITIATED WITH A HOLD AT DEUTSCHE BANK
• ARES CAPITAL (ARCC) INITIATED WITH A BUY AT COMPASS POINT
• BROADCOM (AVGO) REINITIATED WITH AN OUTPERFORM AT CREDIT SUISSE
• CBS (CBS) RESUMED WITH AN OVERWEIGHT AT MORGAN STANLEY
• DELPHI TECHNOLOGIES (DLPH) INITIATED WITH AN OVERWEIGHT AT BARCLAYS
• DERMIRA (DERM) INITIATED WITH A BUY AT GUGGENHEIM
• FACEBOOK (FB) INITIATED WITH AN OUTPERFORM AT EVERCORE ISI
• FOAMIX (FOMX) INITIATED WITH A BUY AT GUGGENHEIM
• HEXCEL (HXL) INITIATED WITH AN OVERWEIGHT AT STEPHENS
• IAC (IAC) INITIATED WITH AN OUTPERFORM AT EVERCORE ISI
• MATCH GROUP (MTCH) INITIATED WITH AN OUTPERFORM AT EVERCORE ISI
• PPDAI GROUP (PPDF) INITIATED WITH A BUY AT CITI
• RADIUS HEALTH (RDUS) INITIATED WITH A NEUTRAL AT CITI
• REVANCE (RVNC) INITIATED WITH A BUY AT GUGGENHEIM
• SNAP (SNAP) INITIATED WITH AN UNDERPERFORM AT EVERCORE ISI
• STRONGBRIDGE BIOPHARMA (SBBP) INITIATED WITH AN OVERWEIGHT AT CANTOR FITZGERALD
• VARONIS (VRNS) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER
• WWE (WWE) INITIATED WITH AN OVERWEIGHT AT JPMORGAN