27 January 2020
FTSE back below 7,500 as virus fears grow, and major Amigo shareholder wants out“The market is back in panic mode about China’s coronavirus. An extended lunar New Year holiday is nothing to celebrate for China, instead it represents an escalation of attempts to contain the deadly virus by restricting travel and locking down major cities,” comments Russ Mould, Investment Director at AJ Bell.
“As the death toll rises, all eyes...
24 January 2020
Open-ended vs. Closed-ended fundsFunds are an increasingly popular choice for investors looking to build their portfolio. They offer a simple way to pool capital with other investors, giving quick and straightforward access to diversification and the services of professional asset managers.
When researching funds, it won’t be long before the terms ‘open-ended’ and ‘closed-ended’...
24 January 2020
FTSE 100 in recovery, and Marston’s faces cost and debt conundrum“It may be a quiet day for corporate news but the FTSE 100 started Friday with a bang, gaining more than 1% early on and moving within sight of the 7,600 mark,” says AJ Bell Investment Director Russ Mould.
“In doing so it has clawed back a good portion of the losses seen in recent days on the spread of the deadly coronavirus in and increasingly...
24 January 2020
How investors can cash-in on ‘Veganuary’As Veganuary sweeps the nation and big brands like Greggs are boosting their profits by offering more vegan foods, there’s an opportunity for investors to gain exposure to this emerging trend. Around 1% of the UK population is vegan*, but far more are part-time vegans or interested in trying more vegan food. Almost a quarter of food products...
23 January 2020
Sainsbury still has much to prove after Coupe era of strategic shiftsAnd he’s gone. Nine months after the Competition and Markets Authority blocked the proposed merger between Sainsbury and Asda, Mike Coupe, boss of Sainsbury and architect of the deal, has announced his intention to step down in June. At least the share price is showing him the courtesy of going down on the news, even if strategic and operational...
23 January 2020
ASOS struts its stuff, and Mothercare CEO departs“The markets aren’t able to shift the impact of the coronavirus for long apparently, news of Chinese city Wuhan being in lockdown spooking investors in Asia and translating into a weak open for the FTSE 100,” says AJ Bell Investment Director Russ Mould.
“The market’s mood isn’t helped by the Trump administration’s apparent threat of a trade war...
22 January 2020
Sainsbury's waves farewell to Coupe, and Burberry boosts guidance“There was some cautious optimism on Wednesday morning despite the risks associated with the Chinese coronavirus continuing to simmer in the background,” says AJ Bell Investment Director Russ Mould.
“The FTSE 100 was higher as it took its cue from strong trading in Asia overnight, rather than the tepid performance in the US as investors weighed the...
21 January 2020
Dixons recovery gathers pace, and EasyJet takes off on strong demand“The FTSE 100 was lower this morning, taking its cue from selling in Asia amid growing concern about the ‘coronavirus’ in China which has led to the death of at least four people,” says AJ Bell Investment Director Russ Mould.
“The markets will be watching nervously amid reports the deadly virus has spread to neighbouring countries, with all the...
20 January 2020
Oil jumps again and Fevertree shares slump on a cocktail of setbacks“Reports that Libyan oil exports have been blocked amid fighting in the country has triggered a 1.1% rise in Brent Crude, putting the oil price back above $65 per barrel. That gave a lift to shares in Royal Dutch Shell and BP and thus benefited the FTSE 100 index, up 0.1% to 7,679.
“ BAE Systems was the top riser on the FTSE 100 after striking...
17 January 2020
Hastings issues profit warning and Premier Foods celebrates Mr Kipling success“Markets put in a much stronger showing at the end of the trading week with gains seen across Asia and Europe, extending a positive session seen last night on Wall Street where the main indices rose between 0.8% and 1%,” says Russ Mould, investment director at AJ Bell.
“The FTSE 100 advanced 0.4% to 7,637 on Friday as commodity producers, airlines...
16 January 2020
Whitbread finds life tough in the regions, and Pearson is bottom of the class again“The US/China initial trade deal may have given US stocks a lift last night, but there is very little movement in Asia and Europe on Thursday,” says Russ Mould, Investment Director at AJ Bell.
“Investors seem to feel there is still unfinished business to resolve and so the markets are likely to remain volatile until phase two negotiations are...
15 January 2020
FAANGs look to get back on the growth track in 2020In the past year the aggregate market capitalisation of Facebook, Amazon, Apple, Netflix and Google’s parent Alphabet has gone up by 45%, or almost $1.3 trillion, even as combined consensus earnings estimates for 2019 and 2020 have fallen by 7% and 8%, or $10.7 billion and $9.6 billion respectively.
This combination of soaring share prices and...
15 January 2020
Persimmon's revenue sacrifice and Quiz continues to disappoint“Markets nervously awaited the signing of the initial US/China trade deal with slight weakness in Asian markets and very little movement on the UK market,” says Russ Mould, investment director at AJ Bell.
“Investors are slightly concerned about Treasury Secretary Steve Mnuchin saying the US would retain tariffs on Chinese goods until the second...
14 January 2020
Markets await US/China agreement, Games Workshop still winning at retail, and Boohoo is still on a roll“Mining stocks were in demand on Tuesday after China’s exports rose for the first time in five months in December and investors eagerly awaited the signing of a preliminary trade agreement between the US and China, expected tomorrow (15 Jan).
“London-listed utility stocks extended yesterday’s gains with Centrica and United Utilities both among the...
13 January 2020
Pound drops on rate cut fear, William Hill bounces back and City Pub Group serves up a menu of excuses“The pound has dropped 0.5% to $1.2996 as markets start to weigh up the prospect of a potential rate cut in the UK. Weekend press reports suggest a growing number of Bank of England policymakers are considering voting for a rate cut so as to try and stimulate the economy.
“That’s put a dent in the share prices of banks such as Lloyds, down 0.7%...
10 January 2020
Card Factory folds on special dividend payment plan for 2020“And so, after Vodafone, Marks & Spencer, Royal Mail and Centrica, another dividend yield that looked ‘too good to be true’ turns out to be just that, after Card Factory’s admission that it will not pay a special dividend in 2020,” says Russ Mould, AJ Bell Investment Director.
“This has torn a huge hole in the share price as chief executive Karen...
10 January 2020
Superdry warns on profit, and Ryanair boosts guidance“Diminishing geo-political risks have got traders and investors pushing the buy button again as shares in consumer electronics giant Apple hit a new high and the Dow Jones index also reaches record levels overnight.
“This positive sentiment travelled across the Atlantic as the FTSE 100 traded higher first thing on Friday,” says AJ Bell investment...
9 January 2020
Clothing conundrum continues to dog Marks & Spencer, and Walsh to step down at International Consolidated Airlines“The FTSE 100 began Thursday on the front foot, gaining 0.5% to top the 7,600 mark as tensions between the US and Iran seemed to cool overnight.
“The Iranian missile attacks on US bases in Iraq, retaliation for the killing of top general Qassem Soleimani, do not appear to have caused major damage and it looks for now as if both sides are taking the...
8 January 2020
Will shipping stocks sail higher due to Middle Eastern tensions?“Headline stock indices may be sliding lower as investors wait for President Trump’s response to the Iranian missile attacks on US bases in Iraq, but higher gold and oil prices are giving support to the share prices of those firms which are producing or exploring for those commodities. Another industry which could find favour if tensions remain...
8 January 2020
Sirius Minerals in surprise takeover talks and Sainsbury’s dragged down by Argos“A new twist in the Middle East saga that has dominated headlines this year put the boot into the markets again. Stocks were in negative territory on Wednesday after Iran targeted US troops with missile strikes,” says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 fell 0.4%, mainland European markets fell by 0.5% to 0.7% and Asian...
7 January 2020
The case for and against US equities as Q4 reporting season approachesThis is already the longest-running US equity bull market in history and investors will be looking to the upcoming fourth-quarter reporting season for clues as to what 2020 may bring, especially as a further 8% advance from the S&P 500 would make this the biggest bull market of all, in terms of capital gains.
S&P 500 index Start Finish Duration...
7 January 2020
World Investment Outlook - Chapter one: UK PoliticsBrexit can already lay claim to the scalp of two Conservative Party Prime Ministers, in the form of David Cameron and Theresa May, although Boris Johnson’s General Election victory in December looks to reduce the chance of him becoming the third, at least in the very short term. Like him or loathe him, financial markets seemed pleased at...
7 January 2020
World Investment Outlook - Chapter two: USA PoliticsHard to believe as it may be, the November 2020 Presidential Election is not the biggest story in Washington, DC as the New Year begins. Instead, America’s capital is gripped by the impeachment proceedings brought by the Democratic Party against President Donald J. Trump, on two counts, relating to the so-called ‘Ukrainegate’ scandal –...
7 January 2020
World Investment Outlook – Chapter three: Japan PoliticsHe has made it. No sooner had Prime Minister Shinzō Abe overseen Japan’s successful stints as the host of both the G20 meeting in Osaka and the Rugby World Cup than he bagged another glittering prize. The Liberal Democratic Party’s (LDP) leader became his country’s longest-serving modern-time Prime Minister in mid-November 2019.
With this...
7 January 2020
World Investment Outlook – Chapter four: Asia PoliticsHard to believe as it may be, Hong Kong found a way of upstaging even the trade tensions between America and China and the further cooling of relations between Japan and Korea in 2019. The Occupy Central movement wrote the headlines for most of the second half of 2019 as Hong Kong residents protested against a law introduced by Hong Kong...
