Live Markets: IPO market off to the races
17/09/2021 16:03
* Major U.S. indexes red; Nasdaq off most
* All major S&P 500 sectors fall: materials weakest group
* Euro STOXX 600 index down ~0.8%
* Dollar up; gold, bitcoin dip, crude slides
* U.S. 10-Year Treasury yield ~1.38%
Sept 17 - Welcome to the home for real-time coverage of
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thoughts with us at markets.research@thomsonreuters.com
IPO MARKET OFF TO THE RACES (1101 EDT/1501 GMT)
The IPO market got off to a fast start post-Labor day and
this week's batch of deals has delivered handsome returns.
Nearly all 10 offerings, which raised at least $50 million, are
in positive territory, sporting an average return of about 54%:
Strong deal performance leads to more deals. That said,
there are 14 IPOs on next week's docket. A current near-term
calendar, by anticipated debut date and approximate deal size,
is below:
Sept 22:
Freshworks FRSH.O (software) ($900m)
Aka Brands AKA.N (fashion) ($250m)
Toast TOST.N (restaurant software) ($700m)
VersaBank VB.TO (Canada, banking) ($50m NYSE)
Sept 23:
Argo Blockchain ARB.L (UK, bitcoin mining) ($150m Nasdaq)
Brilliant Earth BRLT.O (jewelry) ($250m)
Knowlton Development KDC.N (Canada, consumer products)
($800M dual-listed)
Remitly Global RELY.O (financial software) ($480m)
Sovos Brands SOVO.O (branded foods) ($350m)
Sterling Check STER.O (background checks) ($300m)
Thorne Healthtech THRN.O (health supplements) ($125m)
EngageSmart ESMT.N (software) ($350m)
Sept 24:
Clearwater Analytics CWAN.N (financial software) ($450m)
Cue Health HLTH.O (healthcare tech) ($200m)
(Lance Tupper)
*****
U.S. INDEXES PLAY A 50, 100, 200 GAME (1018 EDT/1418 GMT)
U.S. stocks are lower early Friday with major technology
firms weighing the most, while uncertainty over higher corporate
taxes and an upcoming Federal Reserve meeting may be keeping
traders on the sidelines. .N
Meanwhile, a number of indexes continue to flirt with
closely watched moving averages.
The S&P 500 .SPX , at around 4,445, is just above its
rising 50-day moving average (DMA), which now resides around
4,436.
The Dow Jones Industrial Average .DJI , at around 34,600,
has been churning around its sticky 100-day moving average,
which is now around 34,670.
This, as the Dow Jones Transportation Average .DJT , at
around 14,365, is once again nearing its rising 200-DMA, which
is now around 14,200.
Traders will certainly take note if these indexes close
below these moving averages in concert.
Here is where markets stand:
(Terence Gabriel)
*****
A WEEK FOR THE HAWKS (0952 EDT/1352 GMT)
Next week will be quite an exciting one for central banking
hawks who will see the first interest rate hike from a developed
country since the pandemic -- Norway is expected to raise rates
to 0.25% on Thursday.
Granted, it wouldn't be a game changer for world markets but
it could set the tone moving forward.
In any case, Norway may be a sideshow on Thursday which may
be dominated by the question of whether the Bank of England
signals when it might push the hike button.
Traders are pricing a rate rise next May but with consumer
price growing at a 9-year high in August, many now believe it
could come sooner. Unicredit economists for instance write today
they expect "the BoE could turn hawkish on Thursday".
The other big one is the Fed's Sept. 21-22 meeting.
The timing of the Fed's tapering plans remains the key
question and recent data suggests caution may be warranted: the
U.S. economy created the fewest jobs in seven months in August
and consumer prices increased at their slowest pace in six
months.
But even if Fed chief Jerome Powell echoes the view,
expressed by some of his colleagues, that stimulus tapering
could start this year, he is likely to stress an interest rate
rise is still way off.
Then there are the doves of the central banking world.
Switzerland (Thursday) - not expected to begin shrinking its
balance sheet or lifting rates until long after its peers,
Sweden (Monday) -- forecast to keep rates at 0% until 2024 and
the Bank of Japan (Tuesday) -- also on hold.
Some reading:
Take Five: Bring out the central bank heavies urn:newsml:reuters.com:*:nL8N2QI407
- U.S. inflation coming off the boil as prices increase
slowly in August urn:newsml:reuters.com:*:nL1N2QG130
- BOJ to maintain stimulus as supply disruption darkens
export outlook urn:newsml:reuters.com:*:nL4N2QJ09R
- UK inflation posts record jump to hit 9-year peak in
August urn:newsml:reuters.com:*:nL8N2QH181
(London Markets Team with Julien Ponthus)
*****
BULLS RUN FOR THE HILLS (0900 EDT/1300 GMT)
The percentage of investors with a bullish short-term
outlook on the U.S. stock market collapsed in the latest
American Association of Individual Investors Sentiment Survey
(AAII). With this, pessimism surged and neutral sentiment
increased.
AAII reported that bullish sentiment, or expectations that
stock prices will rise over the next six months, slid 16.4
percentage points to 22.4%. This is the lowest level of bullish
sentiment since July 29, 2020. Optimism is well below the
historical average low of 28%.
Bearish sentiment, or expectations that stock prices will
fall over the next six months, jumped 12.1 percentage points to
39.3%. This is the seventh time out of the last nine weeks that
pessimism is above the historical average of 30.5%.
Neutral sentiment, or expectations that stock prices will
stay essentially unchanged over the next six months, increased
4.4 percentage points to 38.3%. This is the second consecutive
week that neutral sentiment is above the historical average of
31.5%.
AAII said that the latest bullish reading conveys "lower
optimism among investors that the current bull market will
continue." AAII also noted that optimism is now "unusually low,"
while "neutral and bearish sentiment are near the top end of
their typical historical ranges."
With these changes, the bull-bear spread plunged to -16.9
from +11.7 last week urn:newsml:reuters.com:*:nL1N2QC1GN:
(Terence Gabriel)
*****
FOR FRIDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EDT/1300 GMT
- CLICK HERE: urn:newsml:reuters.com:*:nL8N2QJ28W
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AAII09172021 https://tmsnrt.rs/3hIZJAl
Central bank policy rates https://tmsnrt.rs/3zcbnt6
earlytrade09172021 https://tmsnrt.rs/3hDLfkX
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(Terence Gabriel and Lance Tupper are Reuters market analysts.
The views expressed are their own)