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- Varchev Finance: Trading day in one post 23.10.2017
Varchev Finance: Trading day in one post 23.10.2017
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Loading...Asian stock market: Asian stocks were mostly higher on Monday as the dollar spiked to more than three-month highs against the yen following a snap election in Japan on Sunday. Japanese Prime Minister Shinzo Abe's ruling coalition secured a two-thirds "super majority" after winning 312 out of 465 seats available at Sunday's election, Reuters said, citing local media. Abe's solid win at the polls points to a continuation of fiscal and hyper-easy monetary policies under his Abenomics program. Those developments were cheered by investors, with Japanese equities popping at the open. The Nikkei 225 surged 1.06 percent, with exporters notching gains on the softer Japanese currency: Nissan rose 1.34 percent, Mitsubishi Motor was up 2.12 percent and Sony rose 1.13 percent. The broader Topix was up 0.79 percent. Ahead of Sunday's election, the Nikkei 225 had closed higher for 14 straight sessions, partially boosted by optimism that Abe's ruling coalition would win. Across the Korean Strait, the Kospi erased early gains to slip 0.11 percent. Gains in blue-chip tech names were offset by declines seen in manufacturing and retail plays. Down Under, the S&P/ASX 200 rose 0.11 percent. The telecommunications services rose 1.59 percent, leading gains on the broader index.
Currency market: Following the news, the dollar also spiked to trade at 113.86 yen. The greenback went as high as 114.09 earlier — its highest levels in more than three months. The kiwi dropped to 69.32 U.S. cents. EUR inched 0.1% lower to $1.1769. Bloomberg Dollar Spot Index gained 0.1%, building on the gains from last week.
Commodities market: On the energy front, U.S. crude futures were up 0.5 percent at $52.10 a barrel. Brent crude futures were 0.29 percent higher at $57.92. The increased exports and the unclear future around the agreement between the OPEC countries will continue to suppress the price of oil and this gives us a good opportunity for short-term Short. Technically, it is clear that the levels of around $53 per barrel are difficult to overcome, and after the formation of a lower peak over the past few days and the strong downward impulse, the probability of observing a decrease is greater. In addition, the price is on a horizontal resistance formed by the medium range, which coincides with 61.8% Fibonacci correction. Gold lowered with 0.3% to $1,276.32 per ounce.
European stock market: The European markets will start the trading week mixed. French CAC will open 13 points lower at 5,351; DAX will start the week 10 points higher at 12,997 and UKX will decline with 3 points to 7,521. Investors will start the trading week cautiously as there are many market catalyst in play. They will keep a close eye on the Manufacturing PMI reports from Germany and the Eurozone on Tuesday. On the day after, traders will focus on the German Ifo Business climate index, and in Thursday market participants will watch ECB's interest rate decision. The consensus is that the bank will keep the interest rates in the region unchanged at 0%.
U.S. stock market: During the last trading day from last week The Dow Jones industrial average eked out a record close, erasing sharp losses, as Wall Street bet on further gains from corporate earnings. The 30-stock index finished just above the flatline, while Travelers rose 2.4 percent and was the biggest contributor to the gains on the Dow. Travelers reported earnings per share that easily beat expectations. The Dow had fallen 104.93 points at its session lows. Tech giant Apple saw its stock decline 2.5 percent, amid speculation of poor demand and cuts in production of iPhone 8. The stock was also posted its biggest one-day decline since Aug. 10. The S&P 500 also erased its losses to manage a record close, as a 12.2 percent gain in Adobe shares offset steep losses from United Continental. The airline's stock fell 8.2 percent. The Nasdaq composite lagged, falling 0.3 percent. Facebook, Google-parent Alphabet, Netflix and Amazon all finished lower.
Economic calendar for the European and U.S. trading session:
10:00 Europe - ECB's Praet Speaks
13:00 UK - CBI Industrial Trends Orders
15:30 Canada - Wholesale Sales
17:00 Europe - Consumer Confidence
US Equity Upgrades
ADOBE (ADBE) UPGRADED TO HOLD FROM SELL AT PIVOTAL RESEARCH
ANGI HOMESERVICES (ANGI) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
AQUA AMERICA (WTR) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO
GRAINGER (GWW) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT ATLANTIC EQUITIES
HALCON RESOURCES (HK) UPGRADED TO BUY FROM ACCUMULATE AT JOHNSON RICE
MERCER (MERC) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
US Equity Downgrades
ALLERGAN (AGN) DOWNGRADED TO NEUTRAL FROM BUY AT MIZUHO
ALLETE (ALE) DOWNGRADED TO SECTOR WEIGHT FROM OVERWEIGHT AT KEYBANC
BENCHMARK ELECTRONICS (BHE) DOWNGRADED TO HOLD FROM BUY AT NEEDHAM
ERICSSON (ERIC) DOWNGRADED TO UNDERPERFORM AT COWEN
GRAINGER (GWW) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
HAIN CELESTIAL (HAIN) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BMO CAPITAL
KB HOME (KBH) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT WEDBUSH
MAA (MAA) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT JMP SECURITIES
MAZOR ROBOTICS (MZOR) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
NIKE (NKE) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN SACHS
PRIMERICA (PRI) DOWNGRADED TO HOLD FROM BUY AT SUNTRUST
SONIC AUTOMOTIVE (SAH) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT BOFA/MERRILL
SPRINT (S) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT MACQUARIE
SUPERVALU (SVU) DOWNGRADED TO NEUTRAL FROM BUY AT NORTHCOAST
US Equity Initiations
BAKER HUGHES (BHGE) INITIATED WITH A NEUTRAL AT UBS
DIAMOND OFFSHORE (DO) INITIATED WITH A HOLD AT HSBC
EIGER BIOPHARMACEUTICALS (EIGR) INITIATED WITH A BUY AT ROTH CAPITAL
ENSCO (ESV) INITIATED WITH A BUY AT HSBC
EVOKE PHARMA (EVOK) REINSTATED WITH A BUY AT FBR CAPITAL
JAZZ PHARMACEUTICALS (JAZZ) INITIATED WITH A BUY AT FBR CAPITAL
NOBLE CORP. (NE) INITIATED WITH A BUY AT HSBC
NORTHERN DYNASTY (NAK) INITIATED WITH A BUY AT H.C. WAINWRIGHT
REDFIN (RDFN) INITIATED WITH AN OUTPERFORM AT WILLIAM BLAIR
RLJ LODGING TRUST (RLJ) INITIATED WITH A HOLD AT SUNTRUST
ROWAN COMPANIES (RDC) INITIATED WITH A BUY AT HSBC
SHIRE (SHPG) INITIATED WITH A BUY AT FBR CAPITAL
SUPERNUS (SUPN) INITIATED WITH A BUY AT FBR CAPITAL
TERRAFORM POWER (TERP) REINSTATED WITH A NEUTRAL AT JPMORGAN
TRANSOCEAN (RIG) INITIATED WITH A HOLD AT HSBC
WAYFAIR (W) INITIATED WITH A BUY AT MKM PARTNERS
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