Market outlook for 2022 City Talk With 2021 is ending a relatively volatile fashion compared to the calm that prevailed throughout most of the year, is this a recognition of the issues that lie ahead in 2022? Inflation The ‘great reopening’ of the global economy of 2021 prompted a bout of inflation of a magnitude not seen for decades. A spiral [...]
Green shoots of recovery in the IPO market City Talk IPOs of all shapes and sizes were understandably shelved by the turmoil in global markets in the first half of the year. It would be a brave company that would launch their newly-listed firm into a global stock market that was in the midst of its biggest and most dramatic rout in years. It is [...]
Pre-Election market update City Talk The famous (or infamous) cliché ‘Buy the rumour, sell the fact’ is commonly used in the financial markets. But it contains a significant element of truth. It has been seen in the performance of the pound versus the dollar and euro since Boris Johnson ascended to the premiership. Having suffered heavily for most of 2019, [...]
Election promises little relief for troubled UK markets December 10, 2019 The election represents another ‘key risk’ moment for UK assets. Depending on the result, some parts of the UK stock market could suffer heavily, while others might be beneficiaries of a surprise result. This is the dangerous part – trying to work out what comes next. Memories of the predictions made before Brexit and Trump [...]
IPOs – no sure thing? November 26, 2019 IPOs always attract plenty of attention, particularly when they are of highly-recognised companies. But are they a wise destination for investor cash? IPOs offer plenty of glamour, a change from the usual stocks in an index, and there have been plenty of new entrants to the UK stock market over the past ten years. Some [...]
US equity outlook – more gains to come? October 22, 2019 The S&P 500 is near record highs, the US economy continues to grow, and the Fed is gently cutting rates in order to help sustain the expansion. Yet sentiment remains fragile at best. Investors are it seems determined to find the ‘next 2008’ at every turn, fretting that a US recession is near and that [...]
Will easyJet share price rally be sustained? October 4, 2019 British no-frills airline easyJet will release its next trading statement on 8 October, and with Thomas Cook’s collapse still fresh in everyone’s mind, will easyJet perhaps see some increased booking numbers? The rise of DIY holidays, where individuals create their own packages rather than rely on tour operators, has already helped easyJet, as has the push [...]
Will Tesco’s earnings drive further share price gains? September 27, 2019 Tesco PLC reports earnings its first-half results on 2 October. The UK’s largest supermarket group is expected to report earnings of 7.5 pence per share, up 17.2 per cent on the year, while revenues are set to remain flat at £31.7 billion. Pretax profit is forecast to be £944 million. Tesco’s outlook is clouded by the [...]
DEBATE: At $1.5bn, is plant burger firm Beyond Meat over-valued? May 2, 2019 At $1.5bn, is plant burger firm Beyond Meat over-valued? Chris Beauchamp, a senior market analyst at IG, says YES. For many, Beyond Meat’s IPO would seem to mark the perfect “market top” moment. A company producing a cutting-edge product, with ongoing losses and the risk that it may never make a profit, is seeking to become [...]
As loss-making Snapchat sets its valuation at up to $22.2bn, would you have to be mad to invest in its IPO? February 17, 2017 Chris Beauchamp, a senior market analyst at IG, says Yes. As the latest tech IPO to come to market, Snap, the parent company of Snapchat, offers the usual combination of coolness, hype and dubious fundamentals. The IG grey market in Snap continues to suggest that the stock will see a pop on the first day [...]
