Royal Mail to be oversubscribed

This morning’s trading in our Royal Mail grey market has seen investors pile in on the buy side.

Since the grey market can be seen as a barometer of investor appetite, the underlying IPO could be anticipated to be oversubscribed.

The last time that the US government was forced to shut down operations due to a policy disagreement between the two major political powers was in December 1995. This saw the equity markets wobble for a week but ultimately carry on their merry way; however, traders will be keeping an eye on sovereign debt markets, since they did suffer afterwards.

Europe is not serving as an optimistic backdrop to the opening of US markets either, due to an unstable political platform in Italy. European Central Bank president Mario Draghi will have a difficult job convincing investors of the EU’s stability and attractiveness when he speaks again this week, particularly if the region's latest manufacturing PMI figures do not back him up.

 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.