Varchev Finance: Trading day in one post - 29.9.2017

Asian trade session: Asian markets traded in a mixed territory after the dollar rose, and the US stock have already absorbed the prospects for tax reform. The Nikkei 225 declined by 0.29%, while Kospi rose 0.53%, with car companies the biggest contributor. Hyundai Motors rose by 2.04% and Kia Motors by 1.3%. Australian ASX 200 declined by 0.05%, Hang Seng wiped 0.09%, while Shanghai composite and Shenzhen grew by 0.27% and 0.555%, respectively.

Currency market: The dollar traded unchanged during the Asian session, with the Dollar Index moving at 93.148 levels, after an initial rise to 93,666. The greenback is partly due to the Trump tax plan and the Fed is likely to raise interest rates in December. JPY trades down 0.27%, amid rising stock market optimism. The most loser during the Asian session was NZD, which saw a decline of 0.31%, while the euro and the Canadian remained unchanged.

Commodity market: On the energy front, oil returned, with WTI rising from 0.08% to $51.60, and Brent rose 0.45% to 57.67%. Gold is trading downward against the backdrop of the rising stock market and as if the downward tension between the US and North Korea. On the other hand, the appreciating dollar over the past few days further supports the depreciation of precious metal.

European stock market: European indices are expected to open with a fall as the German DAX30 will start 5 points lower, the French CAC40 will open 2 points lower and UK100 one point down at the price of 7325. Today markets are expected to be volatile as it is the last business day for Q3, and many of the hedge funds and investment banks will close and open positions to restructure portfolios and raise profits.

US Stock Market:  A record day marked the US session yesterday as the Dow Jones closed 40 points higher and the index showing small caps, Russell 2000 reached new highs. All this positivism comes after Trump's tax reform. Dow Jones's strongest support came from McDonald's shares, which rose 2.23%, and Exxon Mobil, which added just under 1%. The S & P 500 rose from 0.12% to 2 510 points. The material sector achieved the strongest growth - by 0.70%, followed by the property sector by 0.61% and by the utilities by 0.3%.

Economic Calendar for the European and American Stock Sessions 29.09.2017

09:00 Germany - Retail sales
09:45 France - Consumer Price Index - CPI
10:55 Germany - Unemployment rates
11:30 UK - GDP
12:00 Eurozone - Consumer Price Index - CPI
15:30 Canada - GDP
15:30 USA - Basic Consumer Price Index
17:15 Eurozone - Speech by Mario Draghi

US Equity Upgrades

ABN AMRO (ABMRF) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK
ALSEA (ALSSF) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS
AMERICAN OUTDOOR BRANDS (AOBC) UPGRADED TO OUTPERFORM FROM NEUTRAL AT WEDBUSH
AVALONBAY (AVB) UPGRADED TO OUTPERFORM FROM IN LINE AT EVERCORE ISI
BOX (BOX) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT RAYMOND JAMES
BUENAVENTURA (BVN) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
COLGATE-PALMOLIVE (CL) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
COMPASS MINERALS (CMP) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
CORPORATE OFFICE PROPERTIES (OFC) UPGRADED TO BUY FROM HOLD AT JEFFERIES
DIAMOND OFFSHORE (DO) UPGRADED TO BUY FROM NEUTRAL AT UBS
ELDORADO GOLD (EGO) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT CREDIT SUISSE
ENSCO (ESV) UPGRADED TO BUY FROM NEUTRAL AT UBS
ESSEX PROPERTY TRUST (ESS) UPGRADED TO IN LINE FROM UNDERPERFORM AT EVERCORE ISI
GENERAL MOTORS (GM) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK
HCP (HCP) UPGRADED TO IN LINE FROM UNDERPERFORM AT EVERCORE ISI
NEW ORIENTAL EDUCATION (EDU) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
NOBLE CORP. (NE) UPGRADED TO BUY FROM NEUTRAL AT UBS
PSEG (PEG) UPGRADED TO OUTPERFORM FROM IN LINE AT EVERCORE ISI
ROSS STORES (ROST) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
ROWAN COMPANIES (RDC) UPGRADED TO BUY FROM NEUTRAL AT UBS
STAAR SURGICAL (STAA) UPGRADED TO BUY FROM HOLD AT CANACCORD
TRANSOCEAN (RIG) UPGRADED TO BUY FROM NEUTRAL AT UBS
UNDER ARMOUR (UAA) UPGRADED TO OVERWEIGHT FROM SECTOR WEIGHT AT KEYBANC

US Equity Downgrades

ABBVIE (ABBV) DOWNGRADED TO NEUTRAL FROM BUY AT UBS
ALBEMARLE (ALB) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
ANGLO AMERICAN (NGLOY) DOWNGRADED TO SELL FROM HOLD AT DEUTSCHE BANK
BUTTERFIELD (NTB) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
CARMAX (KMX) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN SACHS
CONSUMER DISCRETIONARY SECTOR (XLY) DOWNGRADED TO UNDERWEIGHT AT MORGAN STANLEY
FRANCO-NEVADA (FNV) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
LIFE STORAGE (LSI) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT BOFA/MERRILL
PROLOGIS (PLD) DOWNGRADED TO IN LINE FROM OUTPERFORM AT EVERCORE ISI
QUEST DIAGNOSTICS (DGX) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
UNDER ARMOUR (UAA) DOWNGRADED TO NEUTRAL FROM BUY AT GUGGENHEIM
VERSARTIS (VSAR) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
VF CORP. (VFC) DOWNGRADED TO SECTOR WEIGHT FROM OVERWEIGHT AT KEYBANC

US Equity Initiations

AMERISAFE (AMSF) INITIATED WITH A NEUTRAL AT BOENNING & SCATTERGOOD
BAKER HUGHES (BHGE) INITIATED WITH AN UNDERPERFORM AT BOFA/MERRILL
BIG LOTS (BIG) INITIATED WITH AN OVERWEIGHT AT MORGAN STANLEY
BLUE APRON (APRN) INITIATED WITH A BUY AT GUGGENHEIM
CORESITE REALTY (COR) INITIATED WITH A NEUTRAL AT JPMORGAN
CHROMADEX (CDXC) INITIATED WITH A BUY AT LADENBURG
EAGLE POINT CREDIT (ECC) INITIATED WITH A BUY AT LADENBURG
ELDORADO RESORTS (ERI) INITIATED WITH A BUY AT DEUTSCHE BANK
EMERGE ENERGY (EMES) INITIATED WITH A NEUTRAL AT PIPER JAFFRAY
ESCALADE (ESCA) INITIATED WITH A BUY AT AEGIS
GRUBHUB (GRUB) ASSUMED WITH A BUY AT CRAIG-HALLUM
HI-CRUSH PARTNERS (HCLP) INITIATED WITH AN OVERWEIGHT AT PIPER JAFFRAY
HOSTESS BRANDS (TWNK) INITIATED WITH AN EQUAL WEIGHT AT MORGAN STANLEY
JANUS HENDERSON GROUP (JHG) INITIATED WITH A MARKET PERFORM AT WELLS FAR
JOHNSON & JOHNSON (JNJ) INITIATED WITH A NEUTRAL AT CITI
KCAP (KCAP) FINANCIAL INITIATED WITH A NEUTRAL AT LADENBURG
LEXINGTON REALTY (LXP) INITIATED WITH A NEUTRAL AT DA DAVIDSON
OLLIE'S BARGAIN OUTLET (OLLI) INITIATED WITH AN EQUAL WEIGHT AT MORGAN STANLEY
ONE LIBERTY PROPERTIES (OLP) INITIATED WITH A NEUTRAL AT DA DAVIDSON
STELLUS CAPITAL (SCM) INITIATED WITH A BUY AT LADENBURG
WABCO (WBC) INITIATED WITH A BUY AT BERENBERG
ZILLOW (ZG) INITIATED WITH A NEUTRAL AT MACQUARIE

Jr Trader Petar Milanov

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