24 April 2019
Boohoo and Primark show retail isn't dead and AB Dynamics motors on“Having last night hit a six-month high, the FTSE 100 took a small step back on Wednesday, falling 0.3% to 7,501. Key detractors were mining, oil and insurance companies.
“Asian shares were also weak amid chatter that investors had started to worry about the Chinese government slowing the pace of monetary and fiscal support following a stronger...
23 April 2019
Three numbers that will help to make or break the Big Five banks’ first-quarter profitsThe FTSE 100 is up by just 1% over the past 12 months but that still beats what the Big Five banks have achieved, with Lloyds the best of them, down 1%, and Barclays the worst, with a 23% drop. That raises the stakes for the first-quarter reporting season, which begins with Barclays on Thursday 25th, especially after the results served up by the US...
18 April 2019
Satisfactory start for new Unilever CEO and Moneysupermarket compares very well“The UK market struggled to find direction ahead of the Easter weekend with the FTSE 100 flat at 7,470. Consumer goods giant Unilever and tobacco manufacturer Imperial Brands did their best to lift the blue chip index but they battled weakness in household goods specialist Reckitt Benckiser and miner Glencore.
“The next wave of the corporate...
17 April 2019
Bunzl's growth fears and Pendragon hit by margin pressure“One would have thought that better than expected economic growth in China would give the FTSE 100 a lift given the presence of many commodity producers in the index who sell to that country.
“However, the FTSE slipped 0.2% to 7,457 because investors got the jitters over BHP following Rio Tinto in cutting its guidance for iron ore production...
16 April 2019
JD Sports’ winning formula and Galliford Try issues profit warning“The FTSE 100 should today close at a record high for 2019 if it can sustain the momentum seen in early trading on Tuesday. Propping up the index are various blue chip companies which have large US dollar earnings including InterContinental Hotels, Ashtead and Antofagasta as the US dollar has increased by 0.2% against the pound,” says Russ Mould...
15 April 2019
Best and worst performing retail stocks, and IWG strikes Japanese deal High street spending figures: British Retail Consortium“An improvement in high street footfall during March is a bit misleading as the figures are skewed by the comparative period last year being very weak," says Russ Mould, Investment Director at AJ Bell.
“The big takeaway from the BRC figures is the fact that higher footfall hasn’t translated...
12 April 2019
CMA hit for Rentokil and Games Workshop back on (table) top“Though there has been some volatility along the way, for the most part the FTSE 100 has been running to stand still this week, with the index flat on Friday morning and on course to close the week a smidge lower.
“Trading platform Plus500 was a notable faller in London, down more than 40% at one stage as its first quarter revenue collapsed,” says...
11 April 2019
WH Smith is a travel junkie and Ted Baker looks to move on“The FTSE 100 fell back as several stocks traded ex-dividend and after sterling largely shrugged off the Brexit extension agreed by the EU overnight.
“A new Halloween deadline likely seen as can kicking rather than really providing space for a coherent Brexit strategy to emerge.
“Airline shares traded higher on relief that at least a no-deal exit...
10 April 2019
ASOS’s profit disappears and Tesco boss delivers the goods“The FTSE 100 took a breather on Wednesday as investors await the next updates from the European Central Bank and the US Federal Reserve.
“ Vodafone was among the key risers on the UK blue chip index, with Reckitt Benckiser heading the fallers.
“Asian shares were down following new trade tensions, albeit concentrated on the US and the EU, and the...
9 April 2019
Back to the day job for Mike Ashley at Sports Direct“Perhaps it is no wonder the markets are struggling for direction when investors have so many things to think about," says Russ Mould, Investment Director at AJ Bell
“Whether it is Brexit – where Theresa May is heading to Paris and Berlin to try and secure an orderly exit from the EU – or trade wars, with tensions between the US and EU beginning...
8 April 2019
Debenhams deadline looms for Ashley“Investors were in a cautious mood at the start of the new trading week with declines in some of the key stock markets around the world.
“In the UK, the FTSE 100 slipped 0.1% to 7,437 with gains from miners and insurers failing to offset weakness from housebuilders and pharmaceutical companies. Japan’s Nikkei index fell 0.2% as investors took...
5 April 2019
Trade talks update fails to excite, and Motorpoint is in the slow lane“An update on trade talks between the US and China failed to have any major influence on global stock markets.
“A deal is expected within the next four to six weeks, although investors remain cautious as reflected by very few markets rallying on the news.
“Only Shanghai’s SSE Composite Index made notable gains, up 0.9%. Other parts of Asia saw a...
4 April 2019
Saga admits failure and Homeserve is an export champion“The FTSE 100 takes a knock on Thursday, falling 0.6% to 7,377 amid a mixture of big names being weak such as Royal Dutch Shell and BP, and several large caps trading without the rights to their dividend including Lloyds Banking and Direct Line,” says Russ Mould, Investment Director at AJ Bell.
Saga“It should have been an easy ride for Saga, so...
3 April 2019
Stagecoach moves up a gear and AA continues to invest despite growing debts“Sterling made a small comeback on Wednesday morning, up 0.4% against the US dollar and gaining 0.3% against the euro, as the Brexit chaos rumbles on. That was good news for a host of UK-focused stocks including Royal Bank of Scotland, Taylor Wimpey and Sainsbury’s.
“Oil prices were also in fashion, nudging very close to $70 a barrel. However the...
2 April 2019
Bonmarché and YouGov“The latest Brexit setback has put another dent into sterling with the currency falling 0.5% against the dollar. This currency movement is positive for the FTSE 100 when you translate the large number of overseas earnings back into sterling. As such, it isn’t a surprise to see the blue chip index rise by 0.2% on Tuesday, helped by strength among...
1 April 2019
easyJet“Perhaps all the warnings about a slowdown in the global economy were premature. While it is a mistake to read too much into one or two pieces of economic data, the surprise news overnight that China’s manufacturing sector returned to growth in March certainly provides food for thought. "For one thing, it suggests the Chinese authorities’ efforts...
29 March 2019
AstraZeneca and TUI“Shanghai’s SSE Composite index jumped 3.2% on hopes that the US and China were making progress with trade talks. This optimism also gave a boost to the London-listed natural resources sector with mining shares topping the list of FTSE 100 risers. “Continued strength with oil prices also gave support to the FTSE with BP and Royal Dutch Shell up on...
28 March 2019
Dignity hit by CMA review and Johnson Matthey goes electric“Continued disagreement around Brexit isn’t doing any favours for sterling with the UK currency slipping 0.2% against the US dollar and down marginally against the euro on Thursday.
“But fortunately for investors, both the FTSE 100 and FTSE 250 managed to push ahead with tobacco, pharmaceutical and mining stocks in favour,” says Russ Mould...
27 March 2019
Sports Direct considers Debenhams bid and Bellway's building momentum“UK markets pushed forward on Wednesday with miners leading the FTSE 100 higher. Fresnillo, Evraz and Rio Tinto were the top sector performers.
“European Central Bank President Mario Draghi said the ECB was ready to further delay a planned interest rate hike if conditions in the eurozone deteriorated. European stock markets were largely unmoved on...
27 March 2019
Ferguson raises fears of US slowdown“Shares in plumbers’ merchant Ferguson are losing steam today after the company’s warning of a slowdown in second-half sales growth, which itself raises questions about the economic health of its largest target market – the USA,” says Russ Mould, AJ Bell Investment Director.
“Ferguson racked up organic sales growth of 6.5% for the first half, a...
26 March 2019
Fevertree Drinks spreads its wings and Ocado inks another international deal“UK investors sat on their hands on Tuesday with the FTSE 100 flat at 7,176. Asian stocks were livelier with Japan’s Nikkei 225 index jumping 2.15%, bouncing back from sharp falls at the start of the week.
“On the commodities front, Brent Crude oil and gold both nudged up 0.6% in value while natural gas prices slipped by 0.4%,” says Russ Mould...
25 March 2019
All change at the top for ConvaTec“The markets have got a real dose of the collywobbles. The weak PMI data in both Europe and the US last week contributed to fears of a global slowdown with bond markets also sounding the red alert," says AJ Bell Investment Director Russ Mould.
“History suggests an inverted yield curve happens in the run-up to a recession. Inversion means when the...
22 March 2019
Smiths Group and Pharmaceutical Stocks“Having enjoyed a strong finish on Thursday amid a big slide in sterling, the FTSE 100 is modestly lower on Friday as news that the immediate cliff edge for Brexit is being postponed drives a recovery rally in the currency.
“Regular observers of the equity markets may long for the day when they don’t also have to be on top of currencies but, with a...
21 March 2019
Renishaw profit warning puts global economy back under the microscope“With only 5% of its sales going to firms based in the UK and a wide-spread of client industries Renishaw has a good insight into what is going on globally and it is always worth listening whenever this high-quality company speaks. Today’s profit warning and forecast of lower annual profits will therefore be a worry for investors, especially as...
21 March 2019
Next and Renishaw“Investors gave a mixed reaction to news that the US Federal Reserve does not expect to raise interest rates for the rest of 2019. Parts of the US market traded lower with particular weakness among banking stocks which will lose out from no interest rate growth. “Asia and Europe struggled to find direction with most markets flashing small amounts...