Based on deals over the first six months of this year, Hong Kong is no longer the world's most popular market for initial public offerings. New York City is the IPO leader, with Shanghai coming in second and Hong Kong third, according to Thomson Reuters data.
Securities and Exchange Commission Chairman Jay Clayton is asking his staff to encourage more initial public offerings to give investors better access to promising new market entrants. IPOs have been languishing in the US, falling more than a third in 2016 from a year earlier, with many of the companies trading below their debut price.
The Biotech sector has been in a downtrend since mid-2015, when it became political "collateral damage" in the pre-"game" warmups of the imminent election season. However, it has shown signs of awakening from hibernation. The maligned sector is rebounding from an extended bottom base and forming a cup-and-handle breakout pattern on the monthly chart. After outperforming the S&P 500 from late 2011 through mid 2015, it has underperformed the broader markets until the last few weeks. Bio-stalwarts CELG (purple) and AMGN (blue) have accelerated faster than the sector, while BIIB (white) has almost perfectly mirrored the IBB's pace. Moreover, not quite as quick on the rotational "fastball" has been GILD (green). That being said, with an ROE (TTM) over 74%, GPM (Quarterly) over 85%, P/E (TTM) of 7 and Dividend of 3%, it may just be the Rx for true value investors.
Technical analyst Zak Mir has singled out Faroe Petroleum as likely to recover its recent gains, after positive news about exploration opportunities in the North Sea. Mir notes that its share price stuttered after hitting a 115p high in February, but its chart shows an ongoing uptrend that could see it climbing back to 110p.
Plastics manufacturer Myers Industries may be set for a breakout, write technical analysts Monica Rizk and Ron Meisels. Their charts show a steep fall to $12.59 in 2015, but the share price recently recovered to $19.45, and the 40-week moving average suggests a further leg-up as high as $22 and beyond.
The McClellan Oscillator, which indicates the rate of acceleration in the market, has been in a narrow range for several days recently, as have similar measurement charts, indicating that a price top is at hand. According to Tom McClellan's analysis of the chart, a sharp decline is not envisaged but there is also little evidence of imminent upward pressure.
Fixed-income traders face a last-minute rush to comply with a requirement of Europe's revised Markets in Financial Instruments Directive that all trades have a legal-entity identifier. The stipulation is new to the fixed-income sector, and an estimated 90% of sovereign-issue bonds and up to 75% of corporate bonds are currently traded without it.
The China Securities Regulatory Commission approved the initial public offerings for six companies that are expected to raise 3.2 billion yuan, the commission said Friday. The regulator is working on moving to a registration-based IPO system from one based on approval.
The Bank for International Settlements is encouraging central banks to start raising interest rates and winding down quantitative-easing efforts. The bank also warned against protectionist efforts and a reversal of global economic cooperation.
Bank of England Governor Mark Carney is starting to lose support for his cautious stance on interest rates as key members of the Monetary Policy Committee turn hawkish, making it likely that the bank is moving toward an increase in rates. "This could push up the pound against the euro," said Forex.com technical analyst Fawad Razaqzada.
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