The US Dollar has dipped in value compared to most other global currencies, as markets are ready and waiting for the inflation results of the USA today. Most economists are forecasting a fall in inflation, from 4% in May to something in the low 3% mark. This would take it ever closer to the desired 2% level and may suggest that previous interest rate hikes are working their magic. The Bank of Canada is also due to announce its decision on hiking interest rates today, which is expected to be lifted once again.
Microsoft saw a dramatic U turn on the US and UK regulators attempts to block their acquisition of gaming company Activision Blizzard. A court in San Francisco ruled that they could indeed go ahead with the takeover, with the UK competitions regulator also agreeing within an hour to put the block on hold. The share price of Activision Blizzard rose 10% on the back of the news, whilst other gaming shares including Electronic Arts and Take-Two Interactive also saw values rise.
Arm, a company specialising in chip designs, is plotting its impending IPO (initial public offering) on the New York Stock Exchange (NYSE). There has been a dry spell of IPOs, owing to the tough environment on the stock markets. It’s believed that Arm is in talks with Nvidia, one of the world’s largest semiconductor companies, to be an anchor investor for their IPO, which would aim to make the IPO more stable. If Arm is successful in listing at the $80 billion valuation that it believes it is worth, it will be the biggest IPO on the NYSE since the Electric Vehicle maker Rivian launched in 2021.
Sources: IG, Reuters, Financial Times, AJ Bell, Nasdaq