We are one week away from the Scottish referendum on independence and it is all traders are talking about. The Better Together campaign was given a shot in the arm after a Survation survey put the ‘No’ vote back in the lead; this has helped the Scottish financial firm claw back some of the losses that were sustained during the week. When it comes to Scottish stocks the bias remains on the downside; any resurgence in the ‘Yes’ campaign could send Edinburgh-based banks through the floor.
Sterling is treading water, as the pound has yet to fully recover from the collapse over the weekend. Even though the currency is cheap at the moment, nobody is willing to buy as we could be approaching ‘Black Thursday’.
Our binary bet on the outcome of the Scottish Referendum has seen a spike in activity; our clients think there is a 20% chance of a ‘Yes’ vote, which compares with a 30% chance pre-Survation survey.
It is one week from the Alibaba IPO which could set a record for stock market flotation, and our grey market is indicating a market capitalisation of $207 billion.
Morrisons is paying for its price war, as first-half profits declined by 30%, but as the supermarket offers a healthy dividend institutional investors still think it’s a bargain.
Ocado delivered a 15.5% jump in third-quarter sales; 2014 could be the year the company finally posts a full-year profit.
In the US we are expecting the Dow Jones to open down 58 points at 17,010 as traders prepare for weak jobless numbers at lunchtime.