Bullish tone in US markets for Candy Crush IPO

US markets look set to open higher today as the good-feelings from the surprise six-year high in consumer confidence yesterday follow through into today. Futures suggest the S&P500 will open 4 points higher at 1,870 with the Dow Jones expected to open 21 points higher 16,410. Speculation is still rife over possible stimulus out of China and Europe. The news overnight that the People’s Bank of China would protect depositors to prevent a run on Sheyang Rural Commercial Bank is suggestive of a willingness to intervene when needed. It is also symptomatic of the stretched Chinese financial system following on from the recent bond defaults. Interestingly with China being a big cause of higher global stocks, the Shanghai composite was down today. Core durable goods orders in the US are expected to show a small increase of 0.3% on the month. The release was one of the bright spots amidst the mixed economic picture painted for the US in January with a surprise print of 1.1%. With a pick-up in consumer confidence and a slight increase in retail sales recently we can perhaps expect to see this follow through to more durable goods orders. US markets appear to have accepted the fate of a shorter rate-hike cycle for now and the S&P500 and the Dow are moving higher on good US economic data. Whether this is because investors agree the economy will grow as quickly as the Federal Reserve predicts or because they think the Fed or perhaps the ECB will back them up if the economy falters is not of immediate concern as markets grind higher. Candy Crush Saga game-maker, King Digital Entertainment, will float today on the NYSE at $22.50 per share in the middle of the projected IPO price range, valuing the company at just over $7bn. The company is very profitable with no debt and is a formidable player in the booming online games market. Investors in the stock will just be hoping the company can build on the success of Candy Crush Saga with new compelling game offerings CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.