Brexit Talks Stall, ECB Set To Extend Stimulus

In corporate news, Airbnb sold shares in its IPO at $68, valuing the company at $47bn. That is well above the $56 to $60 range it had teased initially. In April, after the pandemic hit the US and the outlook for the travel industry disintegrated, Airbnb raised $2bn in debt funding at an $18bn valuation and laid off a quarter of its staff in a cost-cutting initiative. Elsewhere, General Electric (GE) agreed to pay a $200m, and AT&T (T) said it has had bids above the $15bn mark for its satellite-TV unit.

S&P 500: -0.8% Wednesday, -13.7% YTD (SPX, SPY)

Dow Jones Industrial Average: -0.4% Wednesday, +5.4% YTD (DIA)

Nasdaq Composite: -1.9% Wednesday, +37.5% YTD (COMP)

Just Eat stock jumps after DoorDash IPO

London-listed stocks were close to flat on Wednesday, with investors still in wait-and-see mode as Brexit negotiations continue. The ability of the UK to move away from EU regulatory standards, fishing rights and more still remain in contention. At the top of the FTSE 100 was Just Eat Takeaway (JSTTY), which added 7.3%, following food delivery firm DoorDash’s mega IPO on the New York Stock Exchange. After going public at $102 a share, representing a $39bn valuation, DoorDash stock is now trading at close to $190. In the FTSE 250, stocks including Pets At Home (PAHGF) and Marks & Spencer (MAKSF) posted gains (of 6.4% and 4.3% respectively) while Polypipe fell back by 4.1%.

Investors also had a forecast from the Confederation of British Industry (CBI) to digest, which said it anticipates the UK economy will recover next year from the pandemic but a full recovery won’t happen until the end of 2020 due to a lack of business investment since the 2016 Brexit vote.

FTSE 100: +0.1% Wednesday, -13% YTD

FTSE 250: +0.1% Wednesday, -9.1% YTD

What to watch

Adobe: Software firm Adobe (adbe) has added almost 50% to its share price in 2020, and has held up over the past three months while some tech names have faltered. The firm delivers its latest set of quarterly earnings on Thursday, where analysts are anticipating an earnings per share figure of $2.66. Key to watch for investors will be the firm’s cloud businesses, where new subscription numbers and new avenues of growth will be under the microscope. Currently, 19 Wall Street analysts rate the stock as a buy or overweight, seven as a hold and one as an underweight.

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