Markets

The next IPO at a bargain price

D.he debutants on the stock exchange have to go on the floor with significant price discounts in these turbulent times. Just a few days ago, Siemens spun off its energy division and earned significantly less money on the stock exchange than originally hoped. The data analysis firm Palantir is going public in New York this Wednesday. Nyse has now set the reference price for the shares at $ 7.25. The data analysis firm working for the CIA and other secret services is valued at $ 15.76 billion.

In its last round of funding in 2015, however, the company was valued at $ 20 billion. Palantir wants to go public on Wednesday via direct placement. The company was co-founded in 2003 by the German-born financial investor and Donald Trump supporter Peter Thiel. With the direct placement, Palantir is following in the footsteps of the music streaming provider Spotify, which chose this path in 2018. In contrast to the conventional IPO, no new shares are issued, but the shares that existing shareholders sell are traded.

Losses expected in Frankfurt

Otherwise, the reactions to the first television debate between Donald Trump and his challenger Joe Biden should be the focus this Wednesday. Portfolio manager Thomas Altmann from QC Partners expects losses on the stock exchanges after the first duel: “The chaos tactic of incumbent Donald Trump did not work. Instead, challenger Joe Biden emerges as the winner of the first TV duel.” Since Biden could reverse some of Trump’s tax reforms, there are quite a few stock market traders who wish for four more Trump years. However, the analyzes of the television debate are not uniform; many also see Trump as the winner.

After the robust start of the week on the German stock exchange, a setback is becoming apparent in the Dax in the middle of the week. Almost an hour before the start of trading, the X-Dax as an indicator for the German leading index was at 12,721 points and indicated a minus of 0.82 percent for the stock market barometer. This means that the Dax could close the month of September with a loss of around 1.5 percent. The leading Eurozone index Euro-Stoxx 50 is expected to be around 0.9 percent lower on Wednesday.

Asia’s stock markets mixed

However, the Asian equity markets did not provide a uniform picture. Political analysts rated the duel as Trump’s best chance to catch up on the polls that were behind him. Doing well for Trump in the debate could lift otherwise cautious market sentiment, said Michael McCarthy, chief strategist at broker CMC Markets in Sydney.

The Japanese Nikkei index was 0.1 percent lower at 23,510 points. The broader Topix index fell 1 percent and stood at 1641 points. Positive economic data from China lifted the Shanghai stock exchange into positive territory, it was 0.5 percent higher. The index of the most important companies in Shanghai and Shenzen gained 0.6 percent. China’s industry grew in September thanks to a boom in exports. The data signals that China’s industrial sector is continuing to move towards pre-pandemic levels as it pent up
Demand, stimulus-driven infrastructure expansions and surprisingly robust exports are driving a recovery.

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