Welcome to the weekly edition of What’s Hot In Stock Market News. To help you stay up to date with shares and stock markets, here are some of the news items that caught my attention this week.
What’s New This Week?
With Stocks At Record Highs, What’s Still Cheap?: The global rally in stocks has made it harder to find value in equities but global strategists at Citi have found what they think are the “seven remaining value trades”. It did this by ranking major regions , global sectors and companies according to their trailing price to earnings relative to the global equity benchmark index, the MSCI ACWI.
Hilton shares jump in New York Stock Exchange Debut: shares in the hotel group Hilton (HLT) jumped 8% above their $20 offfering price after their stock market debut on Thursday. The company raised $2.35 billion as part of it’s initial public offering making it the biggest share sale by a hotel firm ever. Hilton is the world’s largest hotel firm which was taken private in 2007 by private equity firm Blackstone Group.
Finally, The Volker Rule: the success of the Volker Rule depends on federal regulators doing what they failed to do in the run up to the financial crisis and have done only haltingly since then: Enforce the spirit as well as the letter of the law against the wishes of powerful banks.
House Price Sentiment In The UK High Is At A Five Year High: Households’ perception of the value of their home has risen to a five year high an index has shown. The Markit House Price Sentiment Index rose to 59.4 during December, and any value over 50 indicates prices are rising.
Why The ‘Great Rotation From Bonds To Equities Never Took Off: a year ago there was much talk of a ‘Great Rotation’ out of bonds and into equities. As ever when a widely-held view is neatly captured by a snappy moniker, things didn’t pan out quite as expected. While bonds have not had the greatest of years, and equities have, it is less obvious that the flows have been from the one asset class to the other.
Here are a few more interesting stock market news stories worth noting
Losing Week For Stocks As Investors Wait For Fed: The Dow Jones Industrial Average, The S&P 500 and the NASDAQ fell about 1.5% this week, the biggest percentage decline for The Dow and The S&P 500 since the final week of August. Stocks have surged this year with the S&P up about 25%. But the rally has faltered in December which is historically a strong month for stocks.
RSA Shares Down 7% As Chief Quits Over Irish Woes: Shares in RSA Insurance Group closed down 7.2% after the firms Chief Executive, Simon Lee, resigned amid deepening problems at its Irish unit. RSA said Lee would leave the Group with immediate effect. Last month RSA suspended the head of its Irish unit, Philip Smith, who later resigned after alleged accounting irregularities were discovered.
Will Fed End 2013 With Bang Or Whimper?: The Federal Reserve holds the wild card for the U.S. stock market next week. Will the U.S. central bank now slow the pace of it’s stimulative bond buying as the economy’s outlook begins to brighten or will it wait, setting the stage for stock investors’ undreamed of gains to keep going.