Oil leads global market tumble on ‘Black Monday’


The collapse of OPEC+ talks over the weekend tipped markets into chaos on Monday. Traders, already on edge due to the unfolding coronavirus epidemic, were sent fleeing to safety after Saudi Arabia slashed its crude oil prices.

Crude and Brent tumbled over 30%, their worst daily performance since the Gulf War, hitting lows below $27.50 and $31.50 respectively. The Kingdom cut prices for April crude by 30% and stated that it intends to raise its output above 10 million barrels per day. Talks at the weekend saw OPEC and its allies fail to agree new terms for an oil production cut; OPEC+ couldn’t even agree to extend the current level of cuts, let alone deepen the cuts to battle the hit to demand from the coronavirus outbreak.

Saudi Arabia is well-positioned to weather weak prices and Russia claims it can withstand the pressure for up to a decade. US shale oil producers, who have flooded the global market with oil to take advantage of supported prices and are heavily debt-laden, could be in dire trouble.

Equities tank

Global equity markets have been sent tumbling. The collapse in the oil markets, combined with news that the Italian government has imposed travel bans on 16 million people, sent investors running from stocks.

US futures went limit down after triggering circuit breakers during the Asian session. After a 5% drop the Dow was indicated to open down over 1,300 points, but based upon the ETF market – which is not suspended – the Dow was looking at a drop of 1,500. Asian stocks took a hammering, with the Hang Seng and the Nikkei both closing over 1,100 points lower.

European equities sank as well, with the DAX, and Euro Stoxx 50, all off around 7%. The FTSE 100, also down 7% to test 6,000, was trading at levels not seen since the immediate aftermath of the Brexit referendum.

Stocks most at risk

While stocks across the board tanked, several industries were hit harder than others.

Oil majors slumped. BP (LSE) tumbled 20%, ExxonMobil dropped 17%, Chevron tumbled 16%, and Occidental cratered 38% – all in pre-market trading on the NYSE – while Royal Dutch Shell fell 14%.

Airlines were hit hard as well after the price slump left them sitting on big losses after hedging oil at higher prices. American Airlines, Delta Airlines, Southwest Airlines and United Airlines were all down 5-6% in the pre-market.

Coronavirus fears weighed on tech stocks. The FAANGS all recorded losses in the range of 6-7%, but cruise ship operators were hit harder. The US government warned American citizens not to go on cruises. Carnival – the company that owns many of the ships currently stranded due to on-board quarantines – dropped 10%, Norwegian Cruise Lines tumbled 11%, and Royal Caribbean Cruises slumped 12% – all before the markets opened.

New record lows for US bonds

The flight to safety drove the yield on US government debt down to record lows. Yields move inversely to prices. The yield on the US 10-year treasury bond fell to 0.32% while the yield on the 30-year treasury note fell towards 0.7%, breaching 1% for the first time in a year.

Gold traded around $1,673 after hitting $1,700 over the weekend.

Cryptos join in with global market chaos

The cryptocurrency market is no stranger to volatility. The world’s largest cryptocurrencies were down around 10-15%, with Bitcoin falling below $8,000.

Markets still rattled by coronavirus fears after yesterday’s brutal sell-off


Investors fled to safety en masse yesterday as a spike in coronavirus cases in Italy, South Korea, and Iran raised fears that the outbreak was becoming a pandemic.

$1.5 trillion was wiped from global equity markets; the Dow recorded only its third ever 1,000 point drop, and the VIX ‘fear index’ spiked to the highest levels since January. Oil sank 4% and gold leapt to a seven-year high.

Today, the sell-off has paused, but the market is hugely indecisive.

Stocks, oil, volatile as markets await next major development

Since the European open today we’ve seen major indices like the DAX, FTSE 100, and Euro Stoxx 50 extend gains towards 1%, drop to multi-month lows, and rebound above opening levels. US stock market futures have gone from indicating a 200-point gain for the Dow on the open to minor losses, and back to signalling a positive open.

The FX market continues to see a shift towards the safety of the US dollar, although cable has managed to hold some gains despite easing back after rising to test $1.30 earlier in the session.

Gold is down around 0.8% and silver has suffered losses of more than 1.3% on profit-taking, but risk-appetite is clearly still absent as crude and Brent oil are struggling to hold opening levels. Like stock markets, the two benchmarks climbed on the open, then fell into the red, before recovering somewhat.

New coronavirus cases reported in Italy, Iran, Austria, Croatia, Tenerife

Markets are caught between buying the dips and pricing in further worrying developments. The first case of coronavirus has been reported in Southern Italy, and Austria and Croatia have reported their first cases today as well. The two Austrian cases are in the province of Tyrol, which borders Northern Italy, while the young man infected in Croatia had recently returned after spending several days in Milan.

Meanwhile, hundreds of people are being tested and many guests quarantined in a hotel in Tenerife after a case of the virus was confirmed there. Iran has also provided an update on the outbreak there: the number of cases is up to 95 and 16 people have died – the Deputy Health Minister is one of those infected.

We’ve also had a slew of companies warning that COVID-19 will impact their earnings. UK blue-chips Meggitt and Croda are weighing on the FTSE 100 after issuing warnings over the impact of the virus upon their businesses.

Markets may gain more direction when the US markets open, but even then uncertainty looks to be the order of the day.

UK inflation beats, EZ construction sinks


Cable moved to session highs before handing it all back after a forecast-beating inflation print that takes some of the pressure off the Bank of England to cut rates. Inflation hit 1.8% in January, rising from 1.3% in December and ahead of the 1.6% forecast. There is a lot of noise here and indeed all this week with a slew of UK data, none of which – except the PMIs on Friday – that tell us enough yet about the direction of the economy.

The bulk of the increase came from higher petrol prices and airfares falling less than they did a year before. It was the first increase in the pace of inflation for six months and backs up the MPC’s decision not to cut rates last month. However, this is not just an inflation question. We need to see whether the positive survey data in the aftermath of the Tory election win is maintained with PMIs this Friday offering a big test for sterling bulls. And we must see whether positive sentiment – soft data – translates into more positive hard data by way of GDP. Inflation remains below target but the BoE does not seem unduly concerned by this. What the Jan decision makes clear is that the majority of the MPC would prefer to keep their power dry vis-à-vis inflation as long as economic activity does not start to stagnate too much.  

GBPUSD pushed up towards 1.3030 but the rally fizzled with little in the numbers to really indicate a change in direction by the BoE. The pair has now retraced the move, heading back through 1.30 again to 1.2980. The gravitational pull of this level will require some significant gear change in either the data, or more likely Brexit trade deal talks, to shake off. Range-bound.

Meanwhile disappointing Eurozone data keeps rolling in. Following the industrial production shocker, and German ZEW sentiment survey, the latest is a dismal construction output print, which came in at –3.7% in December year-on-year from +1.4% previously. Terrible but only underscoring the sluggishness in the EZ economy. Both EURUSD and EURGBP are vulnerable to further downside in the near-term although both pairs have eased off their lows of the day.  

Elsewhere, bond markets are not joining the risk rally party today with yields sliding to session lows. That’ll be because of, er, monetary policy expectations, which is exactly what’s lifting markets in Europe to fresh all-time highs. Gold is reacting to this yield play as it should, shooting up to $1609.80 to within a whisker of the recent multi-year highs at $1611.  USDJPY is pushing higher, breaking the near-term resistance at the Jan swing high at 110.20 to trade at session highs. With this level cleared we can now look to the May peak at 110.70 before a move back to the big 50% retracement at 112.70. 

European equities rise as China eases


Police in Hong Kong are investigating an alleged toilet paper heist, amid a shortage due to the coronavirus outbreak. Things are bad when loo roll becomes currency.

It’s a dull old session out there today: European shares were a little indecisive at the start of play following a mixed bag overnight in Asia, but are leaning higher with stimulus from China helping to lift the mood. Basic resources stocks were among the biggest gains on the FTSE as the blue chip index moved to try to reclaim the 7500 level, last some way short at 7445.

Shares in Hong Kong and Shanghai advanced as China cut a key medium-term interest rate, while Tokyo shares slipped on growth concerns. Markets are betting this will be only a part of a wider stimulus programme to offset the economic damage wrought by the Covid-19 coronavirus – the PBOC has already been injecting liquidity and there will no doubt be more to come. China reported another 2k cases by Sunday night, taking the total to more than 70k.

US stocks finished higher for the second straight week. Markets in the US will be closed today for Washington’s birthday but have rolled into the holiday in fine fettle. Industrial productions were weak, down 0.3% in January, largely down to Boeing. Ex-aircraft production, factory output rose 0.3%. Retail sales showed the US consumer started the year in decent shape, with headline sales +0.3% month on month.

There are growing fears about the economic impact. Japan’s economy shrank at the quickest pace in six years in the last quarter of 2019 – down 6.3% as the consumption tax hike hobbled the economy far worse than thought.

Most think to hit to tourism and exports resulting from the outbreak will mean the economy contracts again in the March quarter, pushing Japan into recession. Meanwhile Singapore has slashed its growth outlook for 2020.

Oil is higher above $52, having closed last week well. Look like a base has been formed at $50, looking to cement gains north of last week’s highs at $52.2.

In FX, there are tentative signs of stabilisation and basing for EURUSD. Speculators have not been this net short since Jun 2019, with net shorts at nearly 86k, contracts so the short-euro trade is very crowded. As ever this CFTC data is a week old so I wouldn’t be surprised if the next set of data showed deeper net shorts towards 100k corresponding to the dove under 1.0880. The inverted hammer on Friday suggests near term reversal but until 1.09 is reclaimed the bears remain in control.

Sterling is giving a gallic shrug to some French fighting talk vis-à-vis Brexit trade talks. GBPUSD is steady at 1.3040, with support at 1.30 and near-term resistance seen at the 50-day moving average at 1.3070.

RBA expected to hold policy, but for how long?


Up until a couple of weeks ago markets were pricing in strong odds that the Reserve Bank of Australia would cut the Official Cash Rate to 0.50% from 0.75%.

All that changed after December’s labour market data was released. Unemployment dropped for a second consecutive month, hitting the lowest levels since April 2019 at 5.1%. Unemployment decreased by 13,000, largely thanks to a 29,000 increase in the number of workers employed part-time.

While still leaving the jobless rate significantly above 4.5% – a level be RBA believes will prompt an acceleration in wage growth – the unexpectedly strong report saw markets slashing odds of further easing in February.

The Australian dollar snapped a 5-day downtrend against the US dollar, spiking to test 0.6880, but the selloff quickly resumed as the focus returned to the viral outbreak in China.

AUD/USD chart, MARKETSX, 16.00 GMT, January 29th, 2020

Bets on easing in February drop after jobs data

According to ASX 30 day interbank cash rate futures contracts for February 2020, the probability of a cut has fallen from 56% as of January 16th to 30% by January 28th.

Westpac also noted that the strong data lowered the odds of further accommodation, with chief economist Bill Evans stating:

“Prior to the release of the surprisingly strong December Employment Report we had expected the cuts to be timed for February and June.”

“Given this strength and the significance of the labour market in the mind of the RBA, we have consequently decided to push out our forecast for two further cash rate cuts from February and June to April and August 2020.”

However, Westpac believes that the recent strength in the labour market won’t last, supporting the call for further easing. Evans explained:

“The importance of the April date is that the Board will have seen another print of the national accounts for the December quarter which is likely to highlight the soft growth environment while we expect that the surprise improvement in the unemployment rate will be unravelling.”

Consensus: cuts are still coming

The general consensus is that the RBA will have to ease further as the year progresses. While some parts of the economy are stabilising, particularly the property market (which has of course been helped by 75 basis points worth of easing during 2019), others are flagging.

Construction and consumer confidence are weak, and expectations for retail sales over the Christmas period are low. Construction output has declined for five straight quarters, while consumer confidence has erased most of the rebound recorded after hitting the lowest levels since mid-2015 in October.

There are also questions over the impact of the bushfires upon monetary policy. It is believed that, despite the economic damage estimated to be in the region of $100 billion, the bushfires will have only a short-term impact and therefore may not have any bearing on monetary policy. However, if it serves to further knock consumer confidence, it could be a contributing factor in any decision to ease policy.

The Chinese coronavirus outbreak is another large unknown; Australia trades heavily with China, so talk of factory shutdowns and a reduction in consumption could hurt the Australian economy.

What will the guidance say?

It can take 12 to 18 months for the impact of monetary policy adjustments to be fully known, so the RBA is likely to claim next month that it needs more time to assess the effects of 2019’s trifecta of cuts.

But how much time? Some analysts, like Evans at Westpac, believe the RBA will tee up a cut for April, while others think we may have to wait until the second half of the year to see further easing.

Sterling off highs despite PMI Boris Bounce


Sterling rallied into the PMI release but eased back a touch despite the survey figures being a little better than expected. GBPUSD broke the Wed peak at 1.31524 but came back down to under 12.3140 following – we are talking very, very minor moves here let’s be clear. Bulls are struggling to hold 1.3150 but they may well rally the troops and if reclaimed later today then we could look for a push towards 1.31690, the Jan 8th high, to open up from upside. Looks very well supported at 1.31 for now.

Yes the PMIs bounced back – with the Composite PMI rising to a 16-month peak at 52.4 from 49.3 in December – but this was entirely to be expected and reflects businesses letting out a collective sigh of relief after the Conservative Party victory in the December election as it heralded an end to the paralysis over Brexit and killed off the prospect of a radical Jeremy Corbyn-led government. Businesses ought to be a damn sight more confident as a result – it does mean that we’re out of the woods . Ultimately, whilst clearly diminishing the case for a cut, I don’t see these PMI surveys as being enough to prevent the Bank from cutting – I think they have already decided on this.

The harder data we’ve seen has been a lot less auspicious. GDP is weak and inflation has come off sharply, albeit the base effect is at play. Inflation rose just 1.3% against 1.5% in November. Core CPI was a meagre +1.4% last month, vs 1.7% expected. CPI inflation rates are at their lowest since 2016. It is worth remembering that this data is backward looking and before the Tory victory, but this only adds to the sense that the BoE has a narrow window of opportunity to cut this month, based on the premise that it feels like it got a little behind the curve globally last year as its hands were tied by Brexit.

The Bank doesn’t want to get behind the curve of market expectations, and is seeking to get a jump on markets whilst still teeing up the cut. It would be following the Fed’s playbook in cutting early in order to prevent a downturn. This is the key thing to remember – the Bank does not want to let a weaker economy fester.  

Whilst there may be lots of arguments against a cut, the coordinated dovish commentary from about half of the MPC over the last fortnight appears no accident. Harder data has turned notably softer and the BoE doesn’t want to risk allowing weakness to become entrenched.

ECB Preview: Strategy review in focus


  • Guidance seen unchanged
  • Inflation pick up
  • EURUSD weaker, long-term uptrend barely holds

No major changes, review in focus

The European Central Bank meeting on Thursday is likely to produce some clues about future monetary policy direction, but nothing concrete. The focus will be on the strategy review as it gets underway, which is buying new boss Christine Lagarde some breathing space. She’s only in her second press conference so expect some further honing of communication skills. 

The focus of the strategy review this week will revolve around its scope and the timescale. Of particular interest of course is the mandate relative to price stability and its inflation target. We’d expect this ultimately to result in the ECB taking a more symmetrical approach to inflation. 

Given there are no fresh economic projections and the focus is on the review, guidance is not expected to alter materially. As I say, the review is a good way to buy time as the ECB remains in a holding pattern due to a) Lagarde’s own inexperience, b) the uncertainty over the economic outlook for the EZ and the world, and c) since Draghi embarked on an aggressive cut and QE restart as his parting gift, allowing Lagarde plenty of time to sit on her hands. 

The easing in trade tensions lately should support the ECB’s December view that ‘the risks surrounding the euro area growth outlook … remain tilted to the downside but are ‘somewhat less pronounced’. Of course whether the trade deal holds is another matter – but I would anticipate the signing of the phase one agreement to be reflected in Lagarde’s commentary.

However, ultimately with the market still expecting further easing from the ECB this year, we will need a clearer handle on where Lagarde is steering this ship soon enough.

Challenges: economy still spluttering 

Flash PMIs due on Friday will tell us more. A mild pick-up is seen, with the latest ZEW numbers showing a glimmer of hope, but the EZ is far from out of the woods. German growth has slowed to a six-year low. Green shoots seem few and far between. Even the UK (despite Brexit, if you care to add as an adjunct) is seen growing faster than any G7 European nation in 2020. Signs that PMIs are basing, but little recovery seen – the bottoming phase may linger.  

Inflation picked up in December, with annual headline inflation rising to a six-month high of 1.3%. Core inflation was steady from Nov at 1.3% also. Welcome news for the ECB, particularly the hawks on the council, but it’s too early to call this a material or sustained uptick. Lagarde is sure to be asked about this. Her answer will be of particular interest – and offering some scope for EURUSD volatility – as it could signal whether the ECB is about to raise its inflation forecasts.

EURU/USD: Uptrend in jeopardy 

The broad uptrend since last September remains in force, but near-term downtrend threatens to snap the bulls’ resolve. Following the swing high at the end of last year at 1.12390, the pair has trended lower to break down below the 50-day and 200-day moving averages, as well as snap the trend support around 1.1090 (red line). Key MA support on the 100-day line, which was touched and reject on Dec 20th is formed around 1.1070. The low of Dec 20th also offers some horizontal support close to this level at 1.10660. So, this region will be a key test as we get into the ECB meeting and the flash PMIs on Friday. 

Lunch wrap: bulls limp, pound holds losses


Bulls have been a bit limp, stumbling out of the gate with their tails up but quickly getting bogged down on decidedly heavy going turf.  European markets perked up early but ran out of steam heading towards lunch. Having initially popped higher the Euro Stoxx 600 turned negative, sliding 0.3%, while the DAX edged 0.4% lower before paring losses a touch. The FTSE 100 held onto slim gains as sterling softened as the odds shortened considerably on the Bank of England cutting interest rates this month.

Chinese trade delegation is said to have left Beijing, on their way to Washington to sign phase one deal.

GBPUSD is softer, beating a retreat under 1.30 as markets aggressively reprice for a BoE rate cut this month following comments from rate setter Vlieghe and weak eco data (See earlier note, BoE: Stitch in time saves 9). EURUSD has been steady at 1.112 but USDJPY is firming with the pair crossing key resistance around the 200-week moving average around 109.70/80, to hit 109.9  

Crude oil is steady at $59 with little in the way of catalysts. Lots on the wires from Saudi Arabia on production but long and short is they are looking to extend output curbs agreement come March. Likewise, gold held the line around $1550 but is showing no real direction. 

US pre-mkts 

US stock futures indicate a solid open with the Dow eyeing a c70pt gain, having earlier looked at a triple-digit gain when the cash equity market opens. 

Lululemon shares rose c2% pre-mkt after it said raised its guidance, saying Q4 revenues would be between $1.37bn and $1.38bn, from previous guidance of $1.32bn to $1.33bn. 

Alphabet is on the verge of joining the $1 trillion market cap club. Shares were a little higher pre-mkt after Evercore ISI raised their price target on the stock to $1600 from $1350.  

Tesla bears are throwing in the towel. Shares were up 2% pre-mkt to $488 after Oppenheimer raised its price target to a Street high $612 from $385. Microsoft price target raised to $180 from $155 at Credit Suisse, whilst Apple’s price target was raised to $375 from $300 at Davidson. 

Stocks firm before NFP, Dax bulls eye all time high

Morning Note

Fading Middle East tensions and a US-China trade deal so close you can smell it helped lift the three major US indices to record highs yesterday.

The Dow rallied 200pts and got within 12pts of breaking the 29k level. Overnight futures prices have ramped higher, taking the Dow through this level and indicating it could open around 29,040 when the cash equity market opens. The S&P 500 ran into a brick wall at 3275 but futures imply a breach today on the open to 3283. This steamroller is not one to get in front off to pick up pennies.

Apple shares smashed new all-time highs to hit $310 with data showing an 18% surge in China sales. The stock has already rerated to trade about 25x forward – much upside left? Needs solid EPS growth which I think we will get in Q4. We’ve already had decent indications from the Services side of the business indicating that its pivot to being more of a Services business is in full swing. App store customers spent a record $1.42bn between Christmas and New Year, 16% up on last year, the company has said. Management also revealed that Apple News is drawing over 100m monthly active users across the US, UK, Canada and Australia. This is all to the good – Services margins are about double that for the rest of the business and will mean re-rating of the stock going forward. 

Asia has been broadly higher and European equity markets are on a firm footing again.

The DAX is looking to open higher, through 13,520 adding to yesterday’s 1.3% gain. A tilt at the all-time high and a breach of 13,600 is on the cards if sentiment holds.

Today’s nonfarm payrolls are the main economic event. Markets anticipate payrolls +162k, with average earnings +0.2% and unemployment at 3.5%.

Remember last month a blowout jobs number sent equities higher along with the US dollar and Treasury yields, as it suggested the US economy was doing better than many corners of the market feared. The headline print was miles ahead of expectations, coming in at 266k vs 180k expected. Unemployment at 3.5% was exceptionally strong, too.  September was revised up 13k to 193k, while October was also revised higher by 28k to 156k. Private payrolls also very strong at 254k. Should we worry about the Fed pivoting again? I don’t think so and the market clearly thinks the same.

The Fed can stand this sort of hot reading for a while yet – jobs growth is averaging only 180k this year vs 223k last year. And whatever privately you might think about whether the Fed should be maintaining an easing bias in this environment, it’s made it very clear that it will take a sustained and pronounced rise in inflation to warrant a hike.

The Fed has made it clear it will let inflation and the economy run hot, so today’s numbers can’t really miss as far as equities are concerned. A weak reading only raises prospect of quicker policy response and may lead to the USD handing back some of the recent gains. 

Oil remains weaker having taken a decisive step under $60 to trade through the bottom of the rising channel it’s tracked since Oct. Support is clear at $59, where our lower trend line meets the 50-day moving average, and this may be where longs stage their defence.

Gold likewise seems to have based for the time being with support holding around $1545. In early European trade we saw a push back to $1550. Real yields are not supportive of pricing as they creep back higher.

In FX, the dollar is still bid. USDJPY is facing double resistance. Having cleared the 200-day and other MAs bulls are looking to break the trend line drawn from the falling highs since the swing high of Oct 2018, at 109.50. Then there is long term 61% Fib level to cross at 109.60 where we have seen rallies hit a wall several times lately. This area is offering a decent amount of resistance as a result but if taken out could see a sharp spike higher.
EURUSD was little changed at 1.11090. Yesterday’s doji candle looks more like indecision than reversal but having touched on the 50-day moving average and rejected it, bulls may sniff something. However the momentum remains with the bears.

GBPUSD has come off its lows to trade at 1.3080, following Mark Carney’s outgoing speech which the market decided was more dovish than before. He’s on the way out anyway, two doves are already voting for cuts – the BoE will cut this year. What Carney says is no longer relevant.

Midday wrap: Europe higher as risk appetite returns, DAX near ATHs


European markets enjoyed solid gains Thursday as risk appetite returned. But the rally hardly betrays a wanton desire for equities because a) we’re already at or near record highs and b) the selloff had not been especially deep despite US-Iran conflict fears seeing havens enjoy firm bid. Even a shaky ceasefire is enough right now to support the bulls. Stronger-than-expected German industrial production figures (+1.1% vs -1.7% prev and 0.8% est) are helping sentiment, particularly in Frankfurt.

The DAX has led the charge with a 1.25% push higher to 13,485, having earlier touched a high of 13,522. With investors apparently keen to load up on risk with US-Iran tensions easing and a US-China trade deal baked in, we may well see the drive to January 2018’s all-time high just shy of 13,600. Geopolitical risks remain of course with the situation in the Middle East still fluid, but you get the sense the bulls are keen to push this over the line. 

The FTSE 100 added 0.5% to break 7600 with resistance seen at 7675, the high posted Dec 27th.  A softer pound is compensating for the weaker oil price.

Elsewhere US markets are firmer again with the Dow shaping up for a triple-digit gain on the open.

Oil has held just short of $60 with no further losses while gold is also holding the line around $1545. 

In FX, the pound took a drubbing as the market decided Bank of England governor Mark Carney’s comments were more dovish than before. GBPUSD slipped the 1.31 handle to test support on the 50-day moving average around 1.3010. I don’t see much in what he said as particularly more dovish than in the past. Commentary around the likelihood of the UK agreeing a trade deal with the EU before the end of 2020 is also weighing on the pound today. 

Meanwhile, as flagged in the morning note, the bullish engulfing daily candle for USDJPY is resulting in further gains today with the pair moving to 109.50 and momentum in favour of USD across the board. Having cleared the 200-day and other MAs bulls are looking to break the trend line drawn from the falling highs since the swing high of Oct 2018. Big 61% Fib level to cross at 109.60 where we have seen rallies hit a wall several times lately. This level will offer a decent amount of resistance as a result. 

US pre-mkts 

Cowen has come out with a bunch of price target upgrades 

Facebook raised PT to $245 from $240 

Alphabet raised PT to $1575 from $1525 

Twitter raised PT to $34 from $32 

Elsewhere AMD shares are up c2.5% pre-market after Mizuho raised the stock to buy. 

Benchmark has initiated Lyft with a sell rating , price target of $35, which is $10 below yesterday’s closing price. 

Boeing shares are up a touch pre-mkt despite Berenberg cutting to hold. After enjoying a thumping 5% jump yesterday, Tesla shares are a touch softer pre-market after being cut to neutral at Baird, a long-time bull which seems to think the recent rally has run its course. They said: “we would not short the stock and remain positively biased over the long run.” See yesterday’s Equity Strategy: US earnings Q4 preview: Two major stocks to watchfor more on Tesla.



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