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.


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