Enthusiasm for WeWork IPO fades

Heading into the close, the FTSE 100 is 30 points higher, as indices end the week on a bullish note.

• Stocks continue to gain after strong week
• Brexit hopes inspire sterling bounce
• WeWork keeps getting cheaper

Stocks are turning higher as the week draws to a close, shaking off some weakness earlier today. Eurozone markets in particular are in fine form, as the September surge is given fresh impetus by the ECB’s open-ended commitment to QE announced yesterday. Investors can breathe a temporary sigh of relief now that the ECB is out of the way, but next week’s Fed meeting is another potential bump in the road that must be carefully navigated. A two-month high for sterling has caught plenty of shorts on the hop, but the duration of this rally seems questionable. Hints of a softer approach from the DUP have powered the move, but some in the party have denied the reports, and on the other side of
 negotiations EU diplomants are keen to play down even the limited reports of ‘progress’ that have filtered through to the UK media.

The longer the bull market goes on, the more discerning investors are becoming about IPOs. WeWork’s fall from grace continues, with the planned valuation being cut back once again to just $10 billion. IG’s grey market on the WeWork IPO has seen client selling from its inception, with some periodic bounces as buyers entered, but the Reuters story has seen the expected market cap fall to $12-16 billion on the IG platform. Scepticism surrounding the IPO refuses to go away, in stark contrast to the clamour for previous big names such as Uber.