Well, on the face of it, things don’t appear too bad: stocks are up for the second week running, having regained all the losses after the UK voted to exit the EU, though that doesn’t take into account the continued depreciation of the pound.
On the macro data front, official data showed that the UK’s total trade deficit in goods and services widened to £2.3bn in May, but didn’t reach £3.6bn (as feared by economists) as exports fell 4.4% month-on-month and imports were down 3.5%. Meanwhile, the IMF cut its growth forecast for the Eurozone following the UK’s vote to leave, now expecting gross domestic product to rise 1.6% this year compared to its estimate of 1.7% before the referendum.
Positive catalysts for global markets last week were the reassuring non-farm payrolls figures out of the US, which beat expectations and calmed fears of a sputtering job market prompted by May’s weak report. Additionally, better US wage growth for June was one indicator that the Fed was looking for, but the expectation remains that the Fed won’t raise short-term interest rates until the end of 2016 at the earliest.
With markets still weathering the storm of uncertainty, SyndicateRoom is continuing to market Fitbug. The company plans to raise £2.61m during this raise. £852,000 has already been raised through institutional investors, with up to £1.76m to be raised via SyndicateRoom and other investors at the same issue price. The funding round is expected to close by 25th July 2016.
SyndicateRoom will provide Fitbug with previously untapped retail demand. As the only crowdfunding platform to have intermediary status with the London Stock Exchange, SyndicateRoom is the only alternative investment platform offering retail investors access to both the public and private equity markets.
Key market catalysts this week
14th Jul – Bank of England Rate Decision (Jul) (12:00)
14th Jul – Bank of England Asset Purchase Target (Jul) (12:00)
15th Jul – USD Consumer Price Index (Jun) (13:30)