Market Round Up: US Record Bull Run & Aramco Float Founders

by | 23 Aug, 2018

1. U.S. Record Bull Run Despite Uncertainties

It is rather apt that on Burger Day, the S&P 500 marked its longest Bull market run in history despite uncertainties around the political future of President Trump, following his ex-lawyer, Micheal Cohen’s, admissions in court yesterday, and on-going fears of a non-conclusive solution to the trade wars. That’s a lot of beef!

It is also a tad concerning that recent data published by Reuters shows foreign purchases of newly issued U.S. Treasury bonds (USTs) dropped to a 2009 low last month ($16.57 billion against $170 billion) regardless of the fact that USTs are offering investors pretty attractive yields. It suggests that investors may be reticent about taking on additional exposure to U.S. bonds in an environment where fiscal risks loom large at a time when the Fed is tightening policy.

Speaking of the Fed, the interest rate setting Federal Open Market Committee indicated it would raise rates again if the economy continued to grow, employment grew and inflation ticked upwards, suggesting by this time next year rates could be on course for a 2% level. However, this doesn’t take into account the rolling trade disputes.

Related: Market Round Up: Trump’s tariffs intensify, US inflation, It’s coming home

 

2. Saudi’s Aramco Float Founders

The biggest initial public offering (IPO) in history is apparently on hold as Saudi Arabia’s state oil company stalls plans for a domestic and international stock exchange listing.

Both New York and London exchanges have been vying for the chance to become the non-domestic exchange host, not just eyeing up the $2 trillion potential valuation of the company, but also all the advisory rich pickings for bankers and lawyers. Instead, both will have to wait with bated breath while Aramco focuses on taking control of petrochemical manufacturer, Saudi basic Industries. It also means the other potential contender, the Hong Kong Stock Exchange, may still be in for a chance as a less-regulated contender.

Related:  Is an oil rally reversal on the way?

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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