‘… And when they were up, they were up, and when they were down, they were down…’
I can’t help but feel that much about the markets and political movements last week drew many parallels with a popular nursery rhyme. As was noted so many times last week, ‘everything and nothing’ has changed; apart from higher levels of uncertainty as to the UK’s position in the EU, fundamentals remained the same, no?
Carney’s statement on cutting interest rates again had an adverse effect on sterling, but it also injected much-needed reassurance into the markets. The key question and ultimate catalyst on investors’ minds now is, will we get access to the single market and, if so, exactly on what terms?
While the vast majority darted in all directions in search of the best possible position, many took the opportunity to pile into blue chip stocks that took an unexpected cut in valuation. After a red start, European indices began to recover mid-week as investors took advantage of the volatility opportunities in the market.
Tuesday–Wednesday saw a two-day relief rally driven by hopes that central bankers will do what is needed to soothe the impact of Brexit, but after all was said and done European markets actually managed to finish Friday comfortably in the green – after some hesitance in the middle of the session as investors digested the prospect of further central bank easing in the wake of the Brexit vote.
Despite markets holding back slightly on primary issuance, SyndicateRoom is full steam ahead: we have launched yet another public markets offering to our members!
Fitbug plans to raise £2.61m during this round; £852,000 has already been raised through institutional investors, leaving up to £1.76m for SyndicateRoom and other investors to pitch in 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:
5th July – Carney Publishes BoE Financial Stability Report (10:30)
6th July – US Fed Releases Minutes from 14–15 June FOMC Meeting (19:00)
8th July – US Non-Farm Payrolls – (13:30)