In Asian Equity Markets Japan’s Nikkei index extended its strong rally to top a new 21-year peak on Thursday morning, with the mining sector getting a boost while buyers continued to pile into companies such as Honda Motor and Sony on robust earnings prospects. The Nikkei rose 0.5 percent to 22,527.07 in early deals, the highest level since July 1996, trimming those gains to stand flat at 22,429.30 in midmorning trade. The broader Topix gained 0.2 percent to 1,790.61. MSCI’s broadest index of Asia-Pacific stocks outside Japan added 0.2 percent, climbing to its highest levels since November 2007. In Greater China, the Shanghai Composite fell 0.58 percent and the Hang Seng Index lost 0.15 percent.
In Currency Markets the dollar pulled back from a 3-1/2-month high versus the yen and also fell back against the euro on Thursday, sagging ahead of a U.S. tax bill that will be unveiled after a one-day delay. The dollar fell 0.2 percent to 113.935 yen. The euro was 0.3 percent higher at $1.1651. Sterling nudged up 0.25 percent to $1.3280 ahead of a Bank of England policy decision. Against the euro, the pound was at 87.74 pence after advancing to 87.33 pence overnight, its strongest since mid-June. The BoE is widely expected to raise interest rates for the first time since July 2007, and investors will focus on the degree of unity among policymakers as they gauge the likelihood of further increases. The kiwi was up 0.6 percent at $0.6926.
In Commodities Markets oil prices held steady on Thursday as U.S. crude inventories fell despite a rise in production, while outside the United States an OPEC-led supply cut continued to tighten the market. Brent futures were at $60.56 per barrel, up 0.1 percent from their last close. U.S. West Texas Intermediate crude was at $54.30 a barrel, unchanged from the last settlement, but still some 30 percent above its 2017-low in June. U.S. commercial crude oil inventories fell by 2.4 million barrels in the week to Oct. 27 to 454.9 million barrels, according to data from the Energy Information Administration (EIA) on Wednesday. Spot gold was up 0.5 percent to $1,279.31 per ounce, while silver prices rose 0.2 percent to $17.15 per ounce.
In US Equity Markets stocks posted modest gains on Wednesday after the U.S. Federal Reserve kept interest rates unchanged and gave encouraging comments about the economy. The Dow Jones Industrial Average rose 0.25 percent, to 23,435.01, the S&P 500 gained 0.16 percent, to 2,579.36 and the Nasdaq Composite lost 0.17 percent, to 6,716.53. After the market closed, Facebook shares were down 1.7 percent in volatile trading after the social media company’s quarterly report. Estee Lauder shares rose 9.2 percent after the cosmetics maker forecast holiday-quarter sales ahead of market expectations. U.S. Steel shares rose 7.8 percent after the company’s quarterly report.
In Bond Markets Japanese government bond prices were little changed on Thursday as a wait-and-see mood prevailed ahead of key events pertaining to U.S. fiscal and monetary policy. The benchmark 10-year JGB yield stood flat at 0.055 percent and the 20-year yield was also unchanged, at 0.585 percent. Benchmark 10-year U.S. note yields were at 2.361 percent in Asian trading, compared to their U.S. close of 2.376 percent on Wednesday, when they fell as low as 2.349 percent.
Economic Calendar
- 09:30 GMT+0 UK Construction PMI
- 13:00 GMT+0 UK BOE Inflation Report
- 13:00 GMT+0 UK MPC Official Bank Rate Votes
- 13:00 GMT+0 UK Monetary Policy Summary
- 13:00 GMT+0 UK Official Bank Rate
- 13:30 GMT+0 UK BOE Gov Carney Speaks
- 13:30 GMT+0 US Unemployment Claims
US Equity Upgrades
- AMERICAN AIRLINES (AAL) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
- B&G FOODS (BGS) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT STEPHENS
- GOLDCORP (GG) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
- INTERCONTINENTAL (IHG) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
- MANITOWOC (MTW) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
- MOSAIC (MOS) UPGRADED TO SECTOR PERFORM FROM UNDERPERFORM AT SCOTIABANK
- PSEG (PEG) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
- SPARK ENERGY (SPKE) UPGRADED TO BUY FROM NEUTRAL AT JANNEY CAPITAL
- WEATHERFORD (WFT) UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL
US Equity Downgrades
- 3D SYSTEMS (DDD) DOWNGRADED TO UNDERPERFORM FROM BUY AT BOFA/MERRILL
- ABERCROMBIE & FITCH (ANF) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JPMORGAN
- ALASKA AIR (ALK) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
- AMGEN (AMGN) DOWNGRADED TO HOLD FROM BUY AT ARGUS
- AVANGRID (AGR) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
- BANKUNITED (BKU) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JPMORGAN
- BARRICK GOLD (ABX) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC CAPITAL
- CAMDEN NATIONAL (CAC) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT KEEFE BRUYETTE
- CHECK POINT (CHKP) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT STEPHENS
- CHECK POINT (CHKP) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT COWEN
- CHECK POINT (CHKP) DOWNGRADED TO NEUTRAL FROM BUY AT BTIG
- DSW (DSW) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT WEDBUSH
- DULUTH HOLDINGS (DLTH) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BMO CAPITAL
- ENVISION HEALTHCARE (EVHC) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT CANTOR FITZGERALD
- EXACT SCIENCES (EXAS) DOWNGRADED TO NEUTRAL FROM BUY AT BTIG
- GENERAL MOTORS (GM) DOWNGRADED TO NEUTRAL FROM BUY AT NOMURA INSTINET
- GOODYEAR TIRE (GT) DOWNGRADED TO NEUTRAL FROM BUY AT GUGGENHEIM
- INTELSAT (I) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
- JETBLUE (JBLU) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
- KBR (KBR) DOWNGRADED TO NEUTRAL FROM BUY AT DA DAVIDSON
- MEDPACE (MEDP) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WILLIAM BLAIR
- MICROCHIP (MCHP) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
- PACWEST BANCORP (PACW) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
- PAYCOM (PAYC) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
- SPIRIT AIRLINES (SAVE) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JPMORGAN
- SURGERY PARTNERS (SGRY) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL
- UNDER ARMOUR (UAA) DOWNGRADED TO HOLD FROM BUY AT SUNTRUST
- UNDER ARMOUR (UAA) DOWNGRADED TO SELL FROM HOLD AT CANACCORD
- UNITED CONTINENTAL (UAL) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JPMORGAN
- WALGREENS BOOTS ALLIANCE (WBA) DOWNGRADED TO MARKET PERFORM AT LEERINK
US Equity Initiations
- CANADIAN NATIONAL (CNI) INITIATED WITH A SELL AT DEUTSCHE BANK
- CANADIAN PACIFIC (CP) INITIATED WITH A BUY AT DEUTSCHE BANK
- FINISAR (FNSR) ASSUMED WITH A BUY AT JEFFERIES
- LENDINGCLUB (LC) INITIATED WITH A BUY AT NEEDHAM
- MELCO RESORTS & ENTERTAINMENT (MLCO) INITIATED WITH A BUY AT ROTH CAPITAL
- PROOFPOINT (PFPT) INITIATED WITH A PERFORM AT OPPENHEIMER
- VBI VACCINES (VBIV) INITIATED WITH A BUY AT CANACCORD