If yesterday was capitulation, today is investors catching their breath.
Most of the main European stock markets regained their balance and either edged higher or held firm, much to the relief of investors who have witnessed two days of share prices flashing red.
Tuesday was dominated by investors selling assets that had already served them well, such as defence stocks and gold, as they locked in profits.
More stability on the markets is welcome not only for sentiment but also as it might give certain investors the confidence to go hunting for bargains and drive a new wave of buying.
What could hold people back from bargain hunting is ongoing uncertainty over energy prices and whether they will stay elevated. If they do, it implies a change in thinking for interest rate expectations and that has major implications for asset valuations.
The FTSE 100 was supported by a broad selection of industries including defence, healthcare, technology, grocers, miners and tobacco. That implies some people have sought comfort in defensive-style industries and others have tentatively regained their risk appetite.
Vistry / Barratt Redrow
Two big names in the UK housebuilding sector are set to exit stage left as Vistry’s Greg Fitzgerald and Barratt Redrow’s David Thomas announce their respective retirements.
Fitzgerald has been instrumental in Vistry’s strategy over recent years, which initially proved successful until an accounting scandal emerged to shake the company’s foundations in 2024.
Having previously come out of retirement to lead the-then Bovis Homes in 2017, Fitzgerald focused what became Vistry – following a merger with Galliford Try’s housebuilding arm in January 2020 – on regeneration projects and partnerships to deliver affordable housing. By sharing the financial load and land risks, the goal was to achieve speedier development.
The shocking drop in Vistry’s share price can’t purely be attributed to Fitzgerald’s departure. He looks set to leave under something of a cloud as, alongside in line full-year results, Vistry warns of margin pressure in 2026 and an end to share buybacks once the current programme is completed as the company looks to get its debts under control. To date and under Fitzgerald’s tenure the shares have delivered a negative total return.
Having faced questions over governance issues – with Fitzgerald occupying the chair and CEO positions at the same time – Vistry is taking the opportunity to separate the two roles.
There’s a more measured response at Barratt Redrow to Thomas’ departure, where the company has already secured an experienced replacement in the form of Dean Banks. He comes from Antipodean infrastructure provider Ventia but also served as a director at Balfour Beatty and De La Rue.
Metro Bank
Metro Bank made a big splash when it launched at the start of the last decade with a plan to reinvent high street banking with an emphasis on convenience and service. Little touches like putting out dog bowls for its customers’ canine companions won it a lot of publicity.
The bank got a brutal reality check when the business model proved prohibitively expensive and it saw several regulatory and accounting failures which damaged its credibility.
However, recent turnaround efforts are starting to gain traction and suggest there may be something to salvage from the Metro Bank brand. This may have meant abandoning its signature seven-day opening model, but potentially a necessary sacrifice in the quest to secure a long-term sustainable future for the bank.
Metro returned to profit in 2025 after years of losses and sees a step change in returns in the coming months as costs come out and it exits a costly debt set-up.
Adidas
For a few years Adidas had a spring in its step, particularly relative to its main rival Nike, after a successful turnaround programme under CEO Bjørn Gulden.
However, that recovery lost momentum in recent months and the share price reaction to the news Gulden will remain in post until 2030 and be joined by Egyptian billionaire Nassef Sawiris as chair is decidedly downbeat.
The market is doubtful of whether the strategy of leaning on Adidas’ retro brands can continue to be successful.
Gulden’s initial moves, which included restoring relationships with wholesalers and moving away from a focus on direct-to-consumer sales have helped. With at least four years left in the top job, the most difficult steps still look to be ahead of him.
Motor finance
Dan Coatsworth, Head of Markets at AJ Bell, comments:
Millions of people hoping for a cash windfall from motor finance mis-selling compensation might find the money lands just in time to deal with a big increase in the cost of living.
Whereas qualifying motorists might have previously earmarked any compensation for a treat like a holiday or a shopping spree, the sharp rise in energy prices over the past few days might warrant other plans for that money. If the energy shock is sustained and household bills soar, a compensation-related windfall might help to ease that pain.
The Financial Conduct Authority is keen to streamline the proposed compensation scheme and speed up the process so affected individuals can learn what they’re owed and get that money. Lenders including Barclays, Lloyds and Close Brothers have already set aside large sums of money to cover any compensation payments, and they will want to put the episode behind them as soon as possible.
Russ Mould: Investment Director
Russ Mould is AJ Bell's Investment Director. He has a Master's degree in Modern History from the University of Oxford and more than 30 years' experience of the capital markets.
He started out at Scottish...
