The volatility surrounding initial public offerings
(IPO) is notorious; but when large companies come into the market, there
is often a draw of fresh capital to get a piece of the action.
Attracting new investors into the market is an especially appealing
consideration now. Since the 2008 financial crisis, there has been
evidence that suggests that retail level investors have not contributed
significantly to strong recovery in US equities.
Given the sell off so far this month, Facebook’s IPO
presents a bright light for lost traders to find their way back –
assuming they want to be drawn back in. With a listing price of
$38/share, the company opened high and subsequently slid. As shares were
worked in after the 11:00 AM EST initial trade, the stock showed the
expected, exaggerated swings and even encouraged a boost in volatility
for fell tech firm Apple.The
highly publicized event couldn’t shake loose of the malaise of the
broader market.
For contrast, EURUSD follows the primary catalyst for this particular global correction. The European sovereign and banking-level crisis is clearly reflected in the world’s second most liquid currency – especially when paired against the top reserve and safe haven currency, the US dollar. With the bounce from EURUSD and follow through decline.
We could see a fundamental pressure relief for Monday or evidence that selling pressure is now self-generating for the capital markets.
For contrast, EURUSD follows the primary catalyst for this particular global correction. The European sovereign and banking-level crisis is clearly reflected in the world’s second most liquid currency – especially when paired against the top reserve and safe haven currency, the US dollar. With the bounce from EURUSD and follow through decline.
We could see a fundamental pressure relief for Monday or evidence that selling pressure is now self-generating for the capital markets.
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