In Asian Equity Markets Japan’s Nikkei index fell to a more than one-week low on Tuesday morning after cyclical stocks lost ground as a stronger yen hit sentiment, while Toshiba Corp rallied after news a U.S. hedge fund increased its stake in the tech company. The Nikkei fell 0.7 percent to 19,988.69 in midmorning trade. The broader Topix fell 0.6 percent to 1,616.34 and the JPX-Nikkei Index 400 fell 0.6 percent to 14,382.28. MSCI’s broadest index of Asia-Pacific stocks outside Japan was down 0.1 percent, a day after scaling its loftiest levels since April 2015. Hong Kong’s Hang Seng Index was down 0.11 percent at mid-morning to 26,441.

 

In Currency Markets the U.S. dollar sank to a 10-month low against a basket of major currencies on Tuesday, hobbled by uncertainty over the pace of the Federal Reserve’s policy tightening and worries that President Donald Trump will fail to deliver healthcare reforms. The dollar fell 0.4 percent to 112.30 yen, having lost steam after hitting a near four month high of 114.495 a week ago. The common currency rose 0.4 percent to $1.1528, hitting its highest levels since May last year.  The kiwi last stood at $0.7315, helped by the U.S. dollar’s broad decline. The Australian dollar gained 1.0 percent to a two-year high of $0.7875 as commodity prices such as iron ore and copper rose following Monday’s data showing robust economic growth in China.

 

In Commodities Markets oil prices were stable on Tuesday, supported by strong consumption but weighed by ongoing high supplies from producer club OPEC and also the United States. Brent crude futures were at $48.55 per barrel, up 0.3 percent, from their last close. U.S. West Texas Intermediate crude futures were at $46.12 per barrel, up 0.2 percent. Spot gold rose 0.3 percent to $1,237.05 per ounce after touching $1,238.27, the highest since July 3, earlier in the session. In other precious metals, silver rose 0.7 percent to $16.18 per ounce. Platinum fell 0.2 percent to $919.75 per ounce. Palladium was up 0.2 percent to $866.50 per ounce.

 

In US Equity Markets  stocks closed little changed in low volume on Monday as gains in utilities and consumer stocks offset declines in healthcare, with earnings news filtering out winners and losers across the board. The Dow Jones Industrial Average fell 0.04 percent, to 21,629.72, the S&P 500 lost 0.01 percent, to 2,459.14 and the Nasdaq Composite added 0.03 percent, to 6,314.43. BlackRock shares   fell 3.1 percent after the world’s biggest asset manager’s quarterly profit came in below expectations. After the closing bell, Netflix shares jumped 8.5 percent following better than expected subscriber growth. Procter & Gamble rose 0.5 percent as investor Nelson Peltz actively seeks a seat on P&G’s board.

 

In Bond Markets  U.S. Treasury yields drifted lower on Monday, trading in narrow ranges, after falling the previous session on soft U.S. inflation and retail sales data ahead of the Federal Reserve’s monetary policy meeting next week.  In late trading, U.S. 10-year yields fell to 2.310 percent , from 2.319 percent late on Friday. U.S. 30-year bonds were yielding 2.896 percent, down from 2.910 percent on Friday. U.S. two-year yields were up slightly at 1.359 percent, from Friday’s 1.355 percent.

 

 

Economic Calendar

• 09:30 GMT+1 UK CPI y/y
• 14:30 GMT+1 UK BOE Gov Carney Speaks

 

US Equity Upgrades

• BOTTOMLINE TECHNOLOGIES (EPAY) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT RAYMOND JAMES
• CACI (CACI) UPGRADED TO BUY FROM HOLD AT JEFFERIES
• CHUY’S (CHUY) UPGRADED TO OUTPERFORM DUE TO SHARE PULLBACK AT RAYMOND JAMES
• CIT GROUP (CIT) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT STEPHENS
• DIAMONDROCK (DRH) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT RAYMOND JAMES
• DOLBY (DLB) UPGRADED TO BUY FROM NEUTRAL AT B. RILEY
• FIFTH STREET FINANCE (FSC) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT JMP SECURITIES
• GATX CORP. (GMT) UPGRADED TO HOLD FROM SELL AT STIFEL
• GREENBRIER (GBX) UPGRADED TO BUY FROM HOLD AT STIFEL
• HEALTHCARE TRUST (HTA) UPGRADED TO STRONG BUY FROM OUTPERFORM AT RAYMOND JAMES
• MEDICAL PROPERTIES (MPW) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT JMP SECURITIES
• NIC INC. (EGOV) UPGRADED TO OUTPERFORM FROM IN-LINE AT IMPERIAL CAPITAL
• RICE MIDSTREAM (RMP) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
• TARGA RESOURCES (TRGP) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
• UNITED RENTALS (URI) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL

 

US Equity Downgrades

• ALCENTRA CAPITAL (ABDC) DOWNGRADED TO OUTPERFORM FROM STRONG BUY AT RAYMOND JAMES
• ALLY FINANCIAL (ALLY) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT STEPHENS
• BOOZ ALLEN (BAH) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
• CEMEX (CX) DOWNGRADED TO SELL FROM NEUTRAL AT CITI
• CRH MEDICAL (CRHM) DOWNGRADED TO NEUTRAL FROM OUTPERFORMER AT CIBC
• FIRST CASH FINANCIAL (FCFS) DOWNGRADED TO NEUTRAL FROM BUY AT JANNEY CAPITAL
• INSULET (PODD) DOWNGRADED TO NEUTRAL FROM BUY AT BTIG
• NGL ENERGY PARTNERS (NGL) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
• NUSTAR ENERGY (NS) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
• NUSTAR GP HOLDINGS (NSH) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
• RYMAN HOSPITALITY (RHP) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
• SAIC (SAIC) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
• SEMGROUP (SEMG) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
• SUMMIT HOTEL PROPERTIES (INN) DOWNGRADED TO MARKET PERFORM FROM
• OUTPERFORM AT RAYMOND JAMES
• SUPERNUS (SNUS) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT PIPER JAFFRAY
• WABTEC (WAB) DOWNGRADED TO HOLD FROM BUY AT STIFEL

 

US Equity Initiations

• ALTICE USA (ATUS) INITIATED WITH A NEUTRAL AT BOFA/MERRILL
• ALTICE USA (ATUS) INITIATED WITH A NEUTRAL AT GOLDMAN SACHS
• ALTICE USA (ATUS) INITIATED WITH AN EQUAL WEIGHT AT BARCLAYS
• ALTICE USA (ATUS) INITIATED WITH AN EQUAL WEIGHT AT MORGAN STANLEY
• ALTICE USA (ATUS) INITIATED WITH AN OVERWEIGHT AT JPMORGAN
• ANSYS (ANSS) INITIATED WITH A NEUTRAL AT GOLDMAN SACHS
• BAKER HUGHES (BHGE) RESUMED WITH AN OVERWEIGHT AT MORGAN STANLEY
• CARDIOME (CRME) ASSUMED WITH A BUY AT CANACCORD
• DEVON ENERGY (DVN) ASSUMED WITH A NEUTRAL AT PIPER JAFFRAY
• GENERAL ELECTRIC (GE) RESUMED WITH AN EQUAL WEIGHT AT MORGAN STANLEY
• LANTHEUS (LNTH) INITIATED WITH AN OVERWEIGHT AT CANTOR
• POST HOLDINGS (POST) INITIATED WITH A BUY AT GOLDMAN SACHS
• PTC (PTC) INITIATED WITH A NEUTRAL AT GOLDMAN SACHS
• RESOLUTE ENERGY (REN) INITIATED WITH A NEUTRAL AT GOLDMAN SACHS
• RH (RH) REINSTATED WITH AN UNDERPERFORM AT BOFA/MERRILL
• SAFETY, INCOME AND GROWTH (SAFE) INITIATED WITH A NEUTRAL AT JPMORGAN
• SAFETY, INCOME AND GROWTH (SAFE) INITIATED WITH AN EQUAL WEIGHT AT BARCLAYS
• SOLIGENIX (SNGX) INITIATED WITH A BUY AT H.C. WAINWRIGHT
• TRILLIUM THERAPEUTICS (TRIL) INITIATED WITH A BUY AT H.C. WAINWRIGHT