Cutting the losses in the last four days, yesterday Asian stocks were on a bright trade; however, that mood did not last long as today they fell to an extent. The MSCI Asia Pacific Index (TPX) slid 0.5 percent as of 1:56 p.m. in Tokyo. Following the trend even Japan’s Topix declined 0.4 percent and Standard & Poor’s 500 Index futures dropped 0.1 percent.
Amidst the expectations that U.S. growth data today and payrolls figures tomorrow may determine the mood of the Federal Reserve policy makers, Asian stock trading started with caution. According to some estimates the U.S. economy probably grew at a 2 percent annualized rate in the third quarter; however, this number is not enough for the Fed to taper its stimulus.
Particularly, when the unemployment rate increased to 7.3 percent from 7.2 percent in the previous month, William English, head of the Fed’s Division of Monetary Affairs, believes that the strategy of not raising interest rates is expected.
Twitter IPO Begins but Brings Bad Trade for Facebook and LinkedIn
Twitter Inc. raised $1.82 billion in its initial public offering which in fact is the largest IPO by a technology company since Facebook Inc.’s that took place in the last year. However, this news brought in negative trade for two other social networking companies Facebook and LinkedIn which slipped Wednesday, may be investors are willing to buy Twitter shares now than these two.
Reportedly, Twitter Inc. sold 70 million shares at $26 each. Earlier it offered the shares for $23 to $25. Earlier, while Facebook shed 2% to close at $49.12, LinkedIn declined 1.7% to close at $220.78. These two companies, particularly, Facebook has been faring better recently whose stocks gained strength after and trading close to $50.
Some other social network sites too declined in yesterday’s trading. Whereas shares of Groupon declined 2.7% to close at $10.01, Yelp was down by 6.4% to close at $66.61. Following the trend Zynga Inc. shed 2.5% to close at $3.71 amidst the news that Twitter is faring better and its shares are expected to rise even more.
Mixed Reactions to Twitter IPO
According to various reports reactions on Twitter’s IPO debut have been mixed. Whereas some analysts are warning against too much hype, some others see a potential in its shares and suggesting for investments. Caution was obvious as the investors have already seen the Facebook fiasco.
To contact the reporter of this story: Jonathan Millet at email@example.com