#market-sentiment

#market-sentiment

The UK IPO market has largely remained in 'wait and see' mode throughout 2025, as companies navigate the repercussions of prolonged geopolitical and macroeconomic instability. However, we are starting to see a shift in sentiment with several large IPOs already confirmed this month. Momentum is now building and the IPO pipeline for the next six to 12 months is strengthening as market conditions improve, with prospective companies keen to move when the pricing window opens.

Key findings found that business volumes declined in the quarter to September at the fastest rate since June 2020 (weighted balance of -36% from -24% in June). However, firms expect volumes growth to make a strong recovery next quarter (+37%). Sentiment was broadly flat in the three months to September, following a sharp fall in June (+3 from -52% in June).

Last month, the stock skyrocketed after an analyst predicted a jaw-dropping 1,000% gain, fueling a frenzy among retail investors. However, the rally collapsed almost as quickly as it began.

Diane Brady highlights how the U.S. economy remains resilient despite the ongoing tariff wars. Market reactions indicate mixed sentiments about future leadership, like fears surrounding President Trump's potential actions against Federal Reserve Chair Jerome Powell.

Markets currently price in two rate cuts by year-end. US Treasury yields were little changed, with the 10-year note holding steady near 4.4%, as traders awaited clarity from the Fed.

Market sentiment has turned fearful now that tensions between Israel and Iran have worsened, leading to a notable drop in technology stocks and impacting major indices.

"Splits matter - because these stocks outperform after the announcement, by a lot. Average returns one year later are 25% vs. 12% for the S&P 500 SPX as a whole, say researchers at Bank of America."

The Crypto Fear and Greed Index is widely regarded as overhyped, often misused by traders who rely on emotional market signals rather than concrete data.

There's an incredible amount of uncertainty that's been building within the stock market since the start of the year, exacerbated by a new administration's unpredictable policies.