In Asian Equity Markets Japanese stocks fell on Wednesday morning as construction shares continued to be battered amid a suspected bid-rigging scandal, while Japan Display jumped on a media report the firm is discussing an investment from three Chinese panel makers. The Nikkei index fell 0.1 percent to 22,838.52 in midmorning trade. MSCI’s broadest index of Asia-Pacific stocks outside Japan inched up 0.1 percent. In Greater China, the Shanghai Composite fell 0.04 percent and the Hang Seng Index gained 0.04 percent. Australia’s S&P/ASX200 gained 0.14 percent.

 

In Currency Markets the dollar was supported on Wednesday by expectations of a U.S. tax overhaul while a sharp rise in German bond yields helped to underpin the euro. The dollar edged up 0.1 percent to 112.95 yen, having pulled away from Friday’s low of 112.035, with last week’s high of 113.75 seen as its next target.  Higher euro zone yields underpinned the euro, which inched up 0.1 percent to $1.1847, after rising 0.5 percent on Tuesday. Against the yen, the euro stood at 133.79 yen, not far from strong resistance levels around 134.50. Elsewhere, the Canadian dollar stood at C$1.2873 to the U.S. dollar after having hit a five-month low of C$1.2920 on Tuesday.

 

In Commodities Markets  oil prices inched up on Wednesday, supported by expectations of a fall in U.S. crude inventories and by the ongoing outage of the North Sea Forties pipeline system. U.S. West Texas Intermediate crude futures were at $57.73 a barrel, up 0.3 percent, from their last settlement. Brent crude futures were at $63.91 a barrel, up 0.17 percent. The API said on Tuesday that U.S. crude inventories fell by 5.2 million barrels in the week to Dec. 15 to 438.7 million. Gold prices gained in Asia on Wednesday after snag in passage of US tax cuts linked to a procedural issue in the Senate kept markets on edge even as most analysts say the bill will still pass this week. Gold futures for February delivery rose 0.22 percent to $1,267.00 a troy ounce.

 

In US Equity Markets  stocks fell on Tuesday as excitement over the likelihood of a tax code revamp was offset by concern over its effect on years of monetary policy stimulus and the future of interest rates. The Dow Jones Industrial Average fell 0.15 percent, to 24,754.75, the S&P 500 lost 0.32 percent, to 2,681.47 and the Nasdaq Composite fell 0.44 percent, to 6,963.85. Apple fell 1.1 percent after broker Instinet downgraded the stock to “neutral,” saying the supply-demand balance for the iPhone X suggested little space to raise sales estimates for the next quarter. Wal-Mart  rose 0.9 percent after Citigroup upgraded the stock to “buy” on expectations that the retailer’s shares will rise further in 2018.

 

In Bond Markets the U.S. 10-year Treasury yield stood at 2.450 percent in Wednesday’s Asian trade. On Tuesday, it had set a seven-week high of 2.472 percent, nearing a seven-month peak of 2.477 percent hit in late October. The rise was driven in part by expectations of tax reforms raising U.S. bond issuance, but many analysts said the immediate trigger was a jump in European bond yields on Tuesday, after Germany unveiled a plan to issue more 30-year debt next year.

 

 

Economic Calendar

• 14:15 GMT+0 UK BOE Gov Carney Speaks
• 16:30 GMT+0 US Crude Oil Inventories
• 10:45 GMT+0 NZD GDP q/q

 

US Equity Upgrades

• ABRAXAS PETROLEUM (AXAS) ASSUMED WITH OUTPERFORM FROM NEUTRAL AT BAIRD
• AGREE REALTY (ADC) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
• ALTRIA GROUP (MO) UPGRADED TO BUY FROM HOLD AT BERENBERG
• ANADARKO (APC) UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL
• CABOT (CBT) UPGRADED TO BUY FROM HOLD AT SUNTRUST
• CALLIDUS SOFTWARE (CALD) UPGRADED TO BUY FROM NEUTRAL AT DOUGHERTY
• CARETRUST REIT (CTRE) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
• CARRIZO OIL & GAS (CRZO) UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL
• CENTENNIAL RESOURCE DEVELOPMENT (CDEV) UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL
• CIMAREX ENERGY (XEC) UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL
• CITIZENS FINANCIAL (CFG) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
• COLGATE-PALMOLIVE (CL) UPGRADED TO OUTPERFORM FROM NEUTRAL AT MACQUARIE
• CONTANGO OIL & GAS (MCF) UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL
• CONTINENTAL RESOURCES (CDEV) ASSUMED WITH OUTPERFORM FROM NEUTRAL AT BAIRD
• CONTINENTAL RESOURCES (CLR) UPGRADED TO NEUTRAL FROM SELL AT SEAPORT GLOBAL
• DEVON ENERGY (DVN) UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL
• DICK’S SPORTING (DKS) UPGRADED TO BUY FROM NEUTRAL AT CITI
• ECLIPSE RESOURCES (ECR) UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL
• GASTAR EXPLORATION (GST) UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL
• GENERAL MOTORS (GM) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
• HARTFORD FINANCIAL (HIG) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
• HUB GROUP (HUBG) UPGRADED TO OUTPERFORM FROM NEUTRAL AT BAIRD
• MACERICH (MAC) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
• MARATHON OIL (MRO)UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL
• MATCH GROUP (MTCH) UPGRADED TO BUY FROM NEUTRAL AT GUGGENHEIM
• MELCO RESORTS (MLCO) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
• NATIONAL GRID (NGG) UPGRADED TO OUTPERFORM FROM NEUTRAL AT MACQUARIE
• NATIONAL STORAGE (NSA) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
• NEWFIELD EXPLORATION (NFX) UPGRADED TO NEUTRAL FROM SELL AT SEAPORT GLOBAL
• NOBLE ENERGY (NBL) UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL
• PERKINELMER (PKI) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT BOFA/MERRILL
• PIONEER NATURAL (PXD) UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL
• PRAXAIR (PX) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK
• RYMAN HOSPITALITY (RHP) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
• SILVERBOW RESOURCES (SBOW) UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL
• SOUTHWEST GAS (SWX) UPGRADED TO BUY FROM NEUTRAL AT UBS
• ULTA BEAUTY (ULTA) UPGRADED TO BUY FROM NEUTRAL AT BUCKINGHAM
• WALMART (WMT) UPGRADED TO BUY FROM NEUTRAL AT CITI
• WHITING PETROLEUM (WLL) UPGRADED TO NEUTRAL FROM SELL AT SEAPORT GLOBAL
• WPX ENERGY (WPX) UPGRADED TO NEUTRAL FROM SELL AT SEAPORT GLOBAL

 

US Equity Downgrades

• AMPLIFY SNACK BRANDS (BETR) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WILLIAM BLAIR
• APPLE (AAPL) DOWNGRADED TO NEUTRAL FROM BUY AT NOMURA INSTINET
• ARRIS (ARRS) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
• CB&I (CBI) DOWNGRADED TO NEUTRAL FROM BUY AT DA DAVIDSON
• CEMEX (CX) DOWNGRADED TO HOLD FROM BUY AT SANTANDER
• CHUBB (CB) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
• CINER RESOURCES (CINR) DOWNGRADED TO HOLD FROM BUY AT SUNTRUST
• FUNKO (FNKO) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BMO CAPITAL
• HANESBRANDS (HBI) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
• HOSPITALITY PROPERTIES (HPT) DOWNGRADED TO UNDERPERFORM AT WELLS FARGO
• KB HOME (KBH) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JPMORGAN
• NOVAVAX (NVAX) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
• OWENS & MINOR (OMI) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JPMORGAN
• PINNACLE ENTERTAINMENT (PNK) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT MACQUARIE
• PPL CORP. (PPL) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT MACQUARIE
• PREMIER (PINC) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
• SUNSTONE HOTEL (SHO) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO

 

US Equity Initiations

• AKEBIA (AKBA) INITIATED WITH AN OVERWEIGHT AT PIPER JAFFRAY
• AXALTA COATING (AXTA) INITIATED WITH A MARKET PERFORM AT RAYMOND JAMES
• CIMAREX ENERGY (XEC) INITIATED WITH AN OUTPERFORM AT BAIRD
• CNX RESOURCES (CNX) INITIATED WITH AN OUTPERFORM AT BAIRD
• CROSSAMERICA (CAPL) RESUMED WITH A BUY AT B. RILEY FBR
• CYPRESS SEMICONDUCTOR (CY) INITIATED WITH AN OVERWEIGHT AT PIPER JAFFRAY
• DELPHI TECHNOLOGIES (DLPH) INITIATED WITH AN OUTPERFORM AT WELLS FARGO
• EDGEWELL PERSONAL CARE (EPC) RESUMED WITH A MARKET PERFORM AT WELLS FARGO
• EP ENERGY (EPE) INITIATED WITH AN OUTPERFORM AT BAIRD
• GOODRICH PETROLEUM (GDP) INITIATED WITH AN OUTPERFORM AT BAIRD
• J & J SNACK FOODS (JJSF) INITIATED WITH A BUY AT CL KING
• MARTIN MIDSTREAM PARTNERS (MMLP) RESUMED WITH A BUY AT B. RILEY FBR
• MARVELL (MRVL) INITIATED WITH AN OVERWEIGHT AT PIPER JAFFRAY
• MICHAEL KORS (KORS) INITIATED WITH A BUY AT NEEDHAM
• MICROSEMI (MCHP) INITIATED WITH AN OVERWEIGHT AT PIPER JAFFRAY
• MIMECAST (MIME) INITIATED WITH A BUY AT DEUTSCHE BANK
• NOVAGOLD (NG) INITIATED WITH A BUY AT B. RILEY FBR
• PARSLEY ENERGY (PE) INITIATED WITH AN OUTPERFORM AT BAIRD
• PAYLOCITY (PCTY) INITIATED WITH A NEUTRAL AT DOUGHERTY
• PFSWEB (PFSW) INITIATED WITH A BUY AT DOUGHERTY
• PPG (PPG) INITIATED WITH AN OUTPERFORM AT RAYMOND JAMES
• REDFIN (RDFN) INITIATED WITH A SECTOR WEIGHT AT KEYBANC
• RSP PERMIAN (RSPP) INITIATED WITH AN OUTPERFORM AT BAIRD
• SHERWIN-WILLIAMS (SHW) INITIATED WITH A STRONG BUY, NAMED A TOP PICK AT RAYMOND JAMES
• SPRAGUE RESOURCES (SRLP) RESUMED WITH A BUY AT B. RILEY FBR
• SUCAMPO (SCMP) INITIATED WITH A BUY AT NOMURA INSTINET
• SYMANTEC (SYMC) INITIATED WITH A HOLD AT DEUTSCHE BANK
• TABULA RASA HEALTHCARE (TRHC) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER
• TAPESTRY (TPR) INITIATED WITH A HOLD AT NEEDHAM