Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

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May 7, 2024

Improved liquidity boosts risk assets

Macro

The DXY and 10-year yields have eased since last week’s FOMC meeting, aided by Friday’s weaker-than-expected employment data.

Liquidity conditions have improved, and equities and other risk assets have rallied. Bitcoin’s price rose 10% over the long weekend. 

This week’s primary economic data are the BoE rate decision on Thursday and the UK GDP numbers on Friday. 

We also have some China trade data on Thursday, expected to show a continuing manufacturing recovery.   

UK Companies

Advanced ADVT has announced the acquisition of document processing platform Celaton for £5m, offering revenue and efficiency synergies across the Group. Its customers include Talk Talk, Currys and Capgemini. It is a related party transaction, being ~90% owned by Vin Murria and BGF. Based on the unaudited financial results for the eight months ended 29 February 2024, Advanced ADVT expects to report good progress against key financial metrics, providing a solid platform for further growth.

Frontier Developments updated that profits are now anticipated to be better than previously guided, based on a higher gross margin percentage from a greater proportion of own-IP revenue, lower operating costs following the completion of the Organisational Review, and the gain from the sale of the RollerCoaster Tycoon 3 publishing rights.

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