Download PDF Introduction An ATM equity long straddle position is delta neutral. If systematic risk is the only factor predicting expected returns, a delta neutral strategy should have an expected return equal to the risk-free rate. In this article we will review academic literature suggesting that not only is this Read more…
Introduction 2018 was a somehow controversial year in IPO terms, with Q1, Q2 and Q3 building a strong momentum for companies to go public, and Q4 eroding the optimism recorded in the preceding timeframe. Unfortunately, 2019 has opened with the same negative outlook, with scheduled IPOs all throughout the world Read more…
[edmc id= 3290]Download here the Weekly Market Brief[/edmc] United States A flurry of US data came out this week. Consumer sentiment came in at 91.3 in November, below an initial reading of 93.1. New home sales rose to 10.7%, taken as positive despite coming in below consensus. Consumer spending increased 0.1% Read more…
[edmc id= 3279]Download here the Weekly Market Brief[/edmc] United States Once again, the discussion around the expected Fed policy decisions in December has dominated the week in the US markets. The minutes of the Fed October meeting, released on Wednesday, hardened expectations of an interest rate hike. They also hinted at Read more…
[edmc id= 3197]Download here the Weekly Market Brief[/edmc] United States The one just ended has been a pretty volatile week for the US market, with investors continuing to show some concern about the possibility of a rate hike in December in an environment of still uneven economic growth. Deteriorating growth outlooks Read more…
[edmc id= 3174]Download here the Weekly Market Brief[/edmc] United States US economy has seen many macroeconomic data being released this week, in particular regarding the labour market, while the FED governor had a speech that has strongly affected the markets on Wednesday. The labour market has been the main actor of Read more…
[edmc id= 3109]Download here the Weekly Market Brief[/edmc] United States This week has been very intensive due to the large amount of macroeconomic data that have stricken the US economy. On the labour market side, the situation continues to improve. In fact, the initial jobless claim beat expectations, 260K requests against Read more…
[edmc id= 3009]Download here the Weekly Market Brief[/edmc] United States October still seems to be a very positive month for US equities. Some analysts pointed it out as the month for a possible rate hike, but it ended up being positive so far, even if uncertainties about the long-awaited rate hike Read more…
[edmc id= 2948]BSIC Weekly Market Brief[/edmc] United States The new positive data regarding the labour market and the speech of the FOMC regarding the recent decision of the FED not to hike interest rates have impacted US markets in the past week. For what concerns the labour side, the Initial Read more…
BSIC Weekly Market Brief United States The major benchmarks were mixed as worries over China’s waning commodity demand and the potential for new rules on drug pricing gave way to a late-week rally. Stocks fell sharply at the start of the week, reaching back toward the lows that they had Read more…
BSIC Weekly Market Brief United States Last week decision by the FED to keep the cost of money unchanged was still affecting the stock market, pushing the S&P500 down during the first part of this week. On the other hand, the yield on the 10-year Treasury Notes has floated quite Read more…
In our May article (https://bsic.it/chinese-divergence-real-vs-financial/), we underlined how many difficulties China faced. We also analysed the development of a stock market bubble in the Shanghai Composite equity index (SHCOMP) and in the Shenzhen CSI 300 (SHSZ300) equity index. This summer saw that bubble bursting. The SHCOMP was trading at 3,185 Read more…
US US equities climbed to new heights as the week drew to a close with the Nasdaq Composite surpassing its previous peak of 5048.62 points from the year 2000 that marked the height of the dot-com era. The tech-heavy index advanced 3.2% over the last 5 days to close Friday’s Read more…
U.S. U.S. equities experienced a negative performance during the past week. Stocks suffered sharp losses also on Friday and the main indexes registered a decline for a third week in a row, finishing what has turned out to be a turbulent five-day trading stretch. The Dow Jones industrial average fell Read more…
On the 4th of March 2015, the FTSE Group published the FTSE UK Index Series Quarterly review that announced the entrance of Hikma Pharmaceuticals (HIK) into the FTSE 100 index and the exit of Tullow Oil (TLW) that will thus join the FTSE 250 index. Additional amendments regard the FTSE Read more…