Trading day in one post 24.08.2017

Overview of the Asian markets: Most major indexes in Asia made gains on Thursday despite Wall Street closing lower after a threat from President Donald Trump about a possible government shutdown. Japan's Nikkei 225 was lower by 0.18 percent in early trade. Across the Korean strait, the Kospi advanced 0.58 percent. In Australia, the S&P/ASX 200 added 0.04 percent, with gains in the materials sub-index offset by losses in the industrials and heavily-weighted financials sub-indexes. The Hang Seng Index rose 0.62 percent as markets in Hong Kong re-opened after being shut on Wednesday due to typhoon Hato. Markets on the mainland were mixed: the Shanghai Composite rose 0.23 percent while the Shenzhen Composite slid 0.114 percent.

Currency Markets: The yen fell 0.2% at 109.21 per dollar. The Bloomberg Dollar Spot Index rose 0.1% after falling 0.3% in the previous session. The euro was trading at $1.1800 after gaining 0.4% on Wednesday. A trading theme has dominated the FX market lately: growth is rewarded. Canada, Norway and Sweden, which have shown the biggest improvement in Citigroup's economic surprise indexes among major economies over the past three months, have also seen their currencies rally the most. Based on this measure, the dollar looks oversold against the NZD, EUR, GBP, JPY and CNY. While the U.S. data have beaten economists' forecasts lately, the DXY index is down more than 4% over the past three months. A continued improvement in data could see the greenback claw back some lost ground.

Commodity Markets: Gold lost 0.2% to $1,288.01 an ounce after gaining 0.5% on Wednesday. WTI was little changed at $48.39 a barrel. U.S. crude-oil supplies declined for an eighth straight week to the lowest level since January 2016. Inventories slipped by 3.3 million barrels to 463.2 million in the period ended Aug. 18, the Energy Information Administration said on Wednesday. West Texas Intermediate futures prices rallied as much as 1.4 percent as the data helped ease glut concerns.

European stock market: Major european indexes will open virtually unchanged. Investors remain wary before the central bankers' meeting in Jackson Hole. President Mario Draghi gave little indication about the next steps for monetary policy in the euro zone during a speech on Wednesday ahead of a key meeting between central bankers. The European Central Bank chief seemed to have learned from his own mistakes by avoiding commenting on how and when he might bring monetary stimulus to an end. Back in June, Draghi rattled markets with a speech at a banking conference in Sintra, Portugal. "All signs now point to a strengthening and broadening recovery in the euro area," he said at the time.

U.S. stock market: U.S. stocks fell for the first time in three days, the dollar slumped and Treasuries gained as Donald Trump’s threat to shut down the government sparked concern Congress won’t easily raise the debt ceiling and deliver on tax reform. Oil rose after a report on stockpiles. All major American equity benchmarks retreated and the 10-year Treasury yield hit the lowest since June as Trump’s gambit prompted Fitch Ratings to warn the country risks a review of its sovereign rating if it fails to raise the limit next month. The dollar slipped amid fresh data showing uneven U.S. growth that contrasted with renewed evidence of strength in Europe ahead of a central-bank symposium in Jackson Hole, Wyoming. S&P 500 fell 0.3% to 2,444.01 with consumer discretionary and industrial shares leading declines. The index is down 1.1% in August after four straight monthly gains. Dow slid 87.86 points to 21,812.03.

Economic calendar for the European and U.S. trading sessions:

10:15 Switzerland - Industrial Orders
11:30 UK - GDP
15:30 USA - Initial Jobless Claims
15:30 Canada - Corporate Profits
17:00 USA - Existing Home Sales
17:30 USA - Natural Gas Storage
18:00 USA - KC Fed Manufacturing Index

US Equity Upgrades
ALIBABA (BABA) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT ATLANTIC EQUITIES
ARCONIC (ARNC) UPGRADED TO BUY FROM NEUTRAL AT LONGBOW
ESTEE LAUDER (EL) UPGRADED TO BUY FROM HOLD AT ARGUS
RADNET (RDNT) UPGRADED TO BUY FROM HOLD AT JEFFERIES
TEMPUR SEALY (TPX) UPGRADED TO BUY FROM HOLD AT STIFEL
VMWARE (VMW) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK

US Equity Downgrades
BROOKFIELD (BIP) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
GLOBAL MEDICAL REIT (GMRE) DOWNGRADED TO NEUTRAL FROM BUY AT DA DAVIDSON
HAIN CELESTIAL (HAIN) DOWNGRADED TO NEUTRAL FROM POSITIVE AT SUSQUEHANNA
JINKOSOLAR (JKS) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
MYLAN (MYL) DOWNGRADED TO HOLD FROM BUY AT ARGUS
TARENA (TEDU) DOWNGRADED TO NEUTRAL FROM BUY AT NOMURA INSTINET
TRINET (TNET) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY

US Equity Initiations
PIONEER NATURAL (PXD) INITIATED WITH AN OUTPERFORM AT IMPERIAL CAPITAL
REDFIN (RDFN) INITIATED WITH A HOLD AT STIFEL
REDFIN (RDFN) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER

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