Analysis

Major football clubs see their share prices jump on European super league

With the major breaking news of the creation of a European Super League, the share prices of the respective founding members and speculated members are jumping strongly today. Juventus has seen a 13% rise in their share price to a new six month high whilst Borussia Dortmund shares rose 8% even though the club have confirmed they will not take part. Manchester United shares will be worth a careful watch when trading opens in the US this afternoon but could well follow similar share price moves as Juventus enjoyed in early trading.

It’s clear from the share price rise that investors are cheering the news given the huge monetary numbers involved for participants and given the fact the much needed cash boost comes on the back of a rising debt burden for most of the top clubs. Joining the super league could give the clubs some much needed financial security and this is what investors are focusing on. Of course today’s share price rally could be premature with most football governing bodies seeking to block the move to the european super league.

Gold reaches 2 month high as US Dollar pulls back

Gold has been struggling for several months and trading in a range which saw the price test a low of $1678 twice. Yet the precious metal has managed to rebound and the price has been rising since the end of March with the price gaining over 6,6% since it reached the previously mentioned low. A weakening US Dollar - which makes Gold cheaper for non USD holders - along with a drop in US bond yields have supported prices recently but that could be set to change in the coming days. With several central bank decisions due out this week and the FED reassuring investors that a rise in inflation was most likely temporary, the attractiveness of Gold as an inflationary hedge has receded. All eyes remain fixed on central banks this week with various press conferences including that of Bank of England, ECB and Bank of Canada.

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