After a tremendous week, traders are taking it easing this morning and have a much softer tone as compared to previous week when we had a Scottish referendum and the biggest IPO of the history. Scotish referendum’s result has certainly made the EU leaders a little bit more comfortable, if they have to face the similar situation.
Alibaba's (NYSE:BABA) shares could once again see another volatile session after soaring nearly 38% on Friday. Traders obviously have too much of love for this company because no other Chinese company has soared this much on the IPO day. I am bullish on the company and any pull back could be a buying opportunity.
Back in Europe, the focus is going to return on the two important mandates of the ECB, inflation and growth. Given that during the recent efforts of the ECB, the demand for TLTRO was soft by the banks, investors are keen to see if we will have a similar trend during the second leg of this TLTRO, which will take place in December. Over the weekend, US treasury secretary has raised his voice that Europe should do more to boost the growth in the region, as it is dragging the global growth. However, given the recent announcement of ABS program, it is highly unlikely that we will see any further measures announced by the ECB this year. Yes, full blown quantitative easing is something that every trader wants to see but perhaps it may not take place this year.
Tesco (LONDON:TSCO) has announced that their profit statement was overestimated by nearly 250 million pound. This is surely another negative news which is going to hurt its share price given the company is already struggling in gaining the market share and compete with market leaders. Tesco used to be the most innovative store in the grocery market but given that Aldi and Lidil has taken its customer by cutting the price of their products without compromising too much on quality, Tesco has been extremely slow to respond to those changes. Today’s news is another disaster for the company.
Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.