10 March 2020
No panic selling – savvy investors are hunting bargainsWhile the market falls yesterday clearly sparked panic among some investors, AJ Bell customers held their nerve and instead went hunting for bargains. While we had the busiest day for log-ins that the platform has ever seen, when we look at what investors are actually doing, more were buying than selling. Looking at data for trading so far this...
10 March 2020
Here comes the market rebound, but can it last? Markets“After the big crash comes the recovery rally. Unfortunately the scale of the rebound is lacklustre at best, suggesting that investors remain extremely nervous,” says Russ Mould, Investment Director at AJ Bell.
“Oil prices jumped 5% following yesterday’s catastrophic collapse yet stock markets could only muster in the region of a 1% to 2%...
9 March 2020
Three lessons to draw from the oil price crash (and why it might actually be a GOOD thing)“There is an old saying that ‘you can’t buck the market’ and Saudi Arabia is learning this twice over today, as the price of both oil and its national champion Aramco go through the floor, despite Riyadh’s best efforts to give them a helping hand,” says Russ Mould, AJ Bell Investment Director.
“But there are two other implications that can be...
9 March 2020
Oil price collapse results in fourth biggest one-day decline in the FTSE on record“Many investors have been waiting for capitulation in the markets before thinking about buying on the dips. History suggests capitulation is quickly followed by despair and that is potentially the best time to buy ahead of a market recovery. Monday’s market destruction might suggest we are moving from the panic to the capitulation stage of the...
6 March 2020
Global airline stocks lose $41 billion of value in one monthAs investors try to work out what could be the short- and long-term impact of the COVID-19 outbreak upon the global economy, corporate profits and therefore share prices one sector in particular has taken a fearsome battering. The global airline sector’s market capitalisation has dropped by $40.6 billion, or 25%, in the last month alone. The sector...
6 March 2020
Government bonds in demand while the recent stock rally goes into reverse“It was a sour end to the week for markets as investors’ hopes over a full blown equity recovery were dashed. Following renewed selling on Wall Street last night, Asia, Europe and UK stocks traded lower on Friday as markets remained very fearful about the economic and social impact of the coronavirus ,” says Russ Mould, Investment Director at AJ...
5 March 2020
Chinese stocks now up year-to-date, while ITV slumps on advertising warning“It is very encouraging to see that China’s SSE index has now recovered all of its losses this year,” says Russ Mould, Investment Director at AJ Bell.
“In the US, the Nasdaq 100 is also showing gains year-to-date (2.5%) although pre-market indicative prices on Thursday suggest the US index could open 1.8% lower which would eradicate some of those...
4 March 2020
ISA investing in the face of CoronavirusA third day of gains for the FTSE 100 this week will be welcome relief for investors but the rebound only makes up a small fraction of the losses experienced last week. This increased volatility has come at a particularly difficult time for investors who want to utilise their ISA allowance before the end of the tax year and are thinking about where...
4 March 2020
FTSE struggles to find direction and Intu’s shares slump after scrapping £1bn fundraise“The UK market struggled to find direction on Wednesday with the index hovering around the 6,730 level, just above last night’s closing price,” says Russ Mould, Investment Director at AJ Bell.
“Yesterday’s US interest rate cut from the Federal Reserve wasn’t deemed enough to help avoid a recession and so investors remain very nervous.
“Wall Street...
3 March 2020
AJ Bell funds asset allocation updateEach January, we review the asset allocation of the AJ Bell growth funds. This process sees us assess the expected returns and risks of the funds’ four asset classes (stocks, bonds, alternatives and cash), across various geographies and sectors. We then decide the appropriate weightings to hold in each before settling on a final investment mix for...
3 March 2020
Why Intertek is a good barometer for the effects of the Coronavirus“Globalisation and the steady growth of trade flows around the world have been a boon to testing and certification specialist Intertek and the FTSE 100 firm’s latest increase in annual sales, profits and especially its dividend are testimony to the quality of its business model,” says Russ Mould, AJ Bell Investment Director.
“Intertek has...
3 March 2020
Markets remain in recovery mode and Greggs upbeat despite February setback“A second day of gains on the FTSE 100 provided welcome relief to investors, although the rebound only makes up a small fraction of the losses experienced last week.
“In-demand stocks in the broader FTSE 350 index included Aston Martin, insurer Direct Line and promotional products specialist 4imprint.
“Importantly, stock movements were also...
2 March 2020
Markets rebound on stimulus hopes“Investors have used the weekend to contemplate last week’s global markets sell-off. The time for reflection seems to have switched the mood from a state of manic to a sense of calm, as illustrated by markets starting to move up on Monday.
“The FTSE 100 rallied by 2.7% to 6,758 on a mixture of bargain hunting and, perhaps more importantly, on hopes...
1 March 2020
Worst week for UK stocks since global financial crisis and even gold is out of favourIt is official: last week was the worst week for the UK stock market since the global financial crisis. The FTSE 100 has dropped 11.1% (or 823 points) on the week to 6,580, the third worst weekly showing for the index since records began in 1984.
The worst was 19 to 23 October 1987 which saw Black Monday contribute to a one-week decline of 22%...
28 February 2020
Weaker demand reported by airlines, and Rolls-Royce bucks the trend with a bout of optimism“It is another catastrophic day for investors as global stock markets continue to fall. After a very large sell-off on Wall Street last night with the Dow Jones down nearly 5%, Asia followed suit with 3%+ declines.
“The FTSE 100 fell 2.8% on Friday morning to 6,607 with airlines, insurers and miners among the worst hit.
“This has been one of the...
27 February 2020
Aston Martin’s ugly balance sheet, and WPP has a rubbish fourth quarter“There is no let up for equities on Thursday as the selling continues and the coronavirus spreads to new countries. In early trading yesterday the S&P 500 had hinted at a recovery as bargain hunters moved in but it closed firmly lower. The FTSE 100 is following Wall Street’s lead and is now well below the 7,000 mark,” says Russ Mould, Investment...
26 February 2020
Taylor Wimpey margin pressure, and William Hill focused on US as UK regulation bites“After US markets endured their worst two-day losing streak in two years the FTSE 100 was on track to close below the 7,000 mark for the first time in a year on Wednesday as fears over the spread of the coronavirus grow,” says Russ Mould, Investment Director at AJ Bell.
“European shares were also under significant pressure as several countries on...
25 February 2020
Full-year figures show huge contrast between Derwent London and Hammerson“The differences between the full-year results from real estate investment trusts Derwent London and Hammerson could hardly be greater,” says Russ Mould, AJ Bell Investment Director.
“Central London-focused Derwent has generated increased rental income, reduced its vacancy rate, launched and quickly filled new developments and grown its net asset...
25 February 2020
Hammerson takes the axe to its dividend, and Hotel Chocolat is looking sweet“Markets have started to recover after yesterday’s brutal bloodbath. While stocks still have a long way to go to make up for Monday’s losses, it is encouraging to see share prices starting to move up. It would suggest there are plenty of investors confident enough to go shopping for bargains rather than widespread fear,” says Russ Mould, Investment...
24 February 2020
Global markets take a big hit, defensive stocks suffer, gold soars, and Primark owner has a contingency plan“Fears over an escalation of the coronavirus outside of China have caused a major retreat in global markets and prompted wild swings in commodity prices,” says Russ Mould, Investment Director at AJ Bell.
“Italy’s lockdown, as the country tries to control the worst outbreak of the virus in Europe, has caused investors to panic about how business and...
21 February 2020
Market waking up to coronavirus impact“While the number of new cases of coronavirus continues to slow in China, the spread outside the country is escalating and it seems the market is waking up to the impact on both individual companies and the wider economy,” says Russ Mould, Investment Director at AJ Bell.
“Profit warnings linked to the health crisis, as companies are either hit by...
20 February 2020
Lloyds navigates one final PPI hurdle, and Anglo American reaps benefit of a soaring palladium price“Following a strong showing on Wall Street last night, UK stocks press ahead on Thursday with a 0.1% gain in the FTSE 100 to 7,463. A positive market reaction to results from Lloyds and Anglo American certainly gave a lift to the banking and mining sectors, two of the most important industries for the UK stock market index,” says Russ Mould...
19 February 2020
Stock markets determined to stay positiveIt feels like markets are looking for any excuse to feel positive at the moment. Apple’s coronavirus-linked iPhone sales warning earlier this week may have spooked investors briefly. However, markets have soon shifted their attention elsewhere,” says AJ Bell Investment Director Russ Mould.
“A small fall in the number of new coronavirus cases and...
18 February 2020
Apple’s warning shouldn’t be a surprise, and HSBC plans big cuts“It’s a red day for markets amid a wave of corporate news. HSBC’s huge job cuts plan, Apple’s coronavirus-related warning and talk of Donald Trump once again stepping up the trade war with China have served to knock investor confidence,” says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 fell 0.3%, primarily because of negative market...
17 February 2020
Coronavirus market losses evaporate and NMC saga continues as founder resigns“A rally in Chinese shares and modest gains across the UK and Europe on Monday mean that investors are no longer nursing huge losses as a result of the coronavirus. Markets have been bouncing back in recent weeks to the extent where large losses in January are now a distant memory,” says Russ Mould, Investment Director at AJ Bell
“Chinese shares...