18 February 2019
RBS’ dividend may be special but the 2018 results and outlook are not“Shareholders in RBS will be delighted to see the bank top up interim dividend payment and take the total for the year to 11p, via a 3.5p regular distribution and a 7.5p special. That will also raise a smile at the Treasury and among taxpayers, as their 62% stake means they will receive some £820 million in dividend payments,” says Russ Mould, AJ...
18 February 2019
Reckitt Benckiser and McColl’s Retail“The London market failed to sustain last week’s positive momentum with the FTSE 100 falling 0.2% on Monday amid weakness in pharma, tobacco and insurance stocks. “Other parts of the world fared better including Japan’s Nikkei 225 which climbed 1.8%, riding a wave that spread across other parts of Asia thanks to growing optimism over the US/China...
15 February 2019
Short-sellers may be on to something in the UK (but they are getting stomped in the US)Not everyone approves of the practice of short-selling but supporters will point to the diligent research involved, the risk posed by the unlimited downside of a short position and the liquidity provided, says Russ Mould, AJ Bell Investment Director. Some investors may view hedge funds’ occasionally public promotion of their bearish views as...
15 February 2019
Royal Bank of Scotland and Premier Foods“Frustrations over the pace of US/China trade talks have weighed on markets with the FTSE 100 dipping 0.1% as the week comes to a close. Markets elsewhere in Europe and Asia were also weak. “Negative sentiment concerning trade issues will almost certainly cast a dark cloud over the natural resources industry and so it is that London-listed miners...
14 February 2019
Micro Focus and Restaurant Group“The pharmaceutical sector was the principal driver of the FTSE 100 on Thursday with the blue-chip index rising 0.2% to 7,206. AstraZeneca was the star of the show amid positive financial results. “Markets were also strong in other parts of Europe although Asia didn’t share the Valentine Day’s joy where screens, rather than roses, were flashing red...
13 February 2019
Falling inflation may give retailers something to smile about (at last)“The Bank of England may be pleased to see inflation ease below its 2.0% target in January, as this may give them breathing space in which to calibrate monetary policy in the run-up to and initial stages of Brexit, but retailers may also welcome a lesser increase in the cost of living,” says Russ Mould, AJ Bell Investment Director.
Source: ONS
“Wa...
13 February 2019
Dunelm and Hochschild Mining“Global markets are back in business on Wednesday. Major indices in the UK, Germany, France, Spain, Hong Kong and Tokyo all step forward amid an apparent return of confidence by investors no doubt linked to optimism over US/China trade talks.
“In the FTSE 100, industrials, miners, insurers and housebuilders lead the way, with the index nudging up 0...
12 February 2019
Plus500 and AA“The FTSE 100 extends yesterday’s gains and at 7,153 is only 24 points away from hitting the year-to-date high (7,177 on 5 February, based on closing prices). Miners, tobacco stocks, banks and healthcare firms help to drive up the index. “Sterling is flat at $1.287 ahead of Theresa May’s update to MPs about her Brexit negotiations. “Overseas...
11 February 2019
Just Eat“Renewed pressure on sterling amid signs Theresa May will further delay a meaningful vote on a Brexit deal and is unwilling to accept Labour suggestions for a cross-party compromise helps lift the FTSE 100 on Monday morning. “The index of leading UK shares tends to benefit from a falling pound as it boosts the relative value of its constituents’...
8 February 2019
SSE“The FTSE 100 held firm on Friday at 7,090 with investors likely to be relieved that yesterday’s 1.1% decline didn’t turn into something uglier as the week came to a close. “Markets in other parts of Europe fared less well, including a 0.2% decline in Frankfurt’s DAX index despite a positive surprise on a piece of economic data. German exports rose...
8 February 2019
FAANGs face key test in 2019 if they are to maintain their recent share price momentum“If you asked an investor would they be willing to pay $2.9 trillion for a company that was going to show virtually no earnings growth in 2019, after a year when operating profit and free cash flow growth had slowed to zero by the end of 2018, investment spending began to accelerate and regulatory pressure gathered then they would probably laugh at...
7 February 2019
Thomas Cook/TUI and Superdry“The FTSE 100 trades a touch lower on Thursday but is still largely holding on to the big gains it enjoyed earlier in the week, with sterling still dogged by Brexit worries. “The Bank of England is almost universally expected to keep interest rates on hold later today so the focus is likely to be on its forecasts for growth and inflation,” says...
6 February 2019
Barratt Developments and CYBG“After a strong run over the past few sessions, the FTSE 100 takes stock of events and trades flat at 7,171. Gains in housebuilders and miners are offset by weakness in pharma and oil stocks. “Asian and Continental Europe markets were also lacklustre. The pound nudged up against the dollar and gold prices chugged along to hit $1,314 per ounce. Oil...
4 February 2019
Ryanair“Markets were steady at the start of the new week with sterling rising against the euro and US dollar. The FTSE 100 advanced 0.15% to 7,030 led by Royal Dutch Shell and BP which were lifted by a stronger oil price. Brent crude advanced 0.6% to $63.12 per barrel. “The commodity price appreciation was bad news for fuel-hungry airlines, with EasyJet...
1 February 2019
Stock markets movements year to date and TalkTalk Telecom“So far 2019 hasn’t been that bad for investors given nearly all major market indices have delivered positive gains. India’s S&P BSE 100 is the only major index to be in negative territory, otherwise there are roughly 4% to 6% gains across Europe, 7% to 9% gains from the US and more than 10% from Russia and Brazil. “Risk appetite seems to be...
31 January 2019
Royal Dutch Shell and BT“An unexpectedly dovish US Federal Reserve which seemed to dial back on the likely pace of rate increases overnight helped provide a boost to global markets. “Amid a raft of corporate updates, including a positive fourth quarter performance from index heavyweight Royal Dutch Shell, the FTSE 100 trades 0.6% higher to move within sight of the 7,000...
30 January 2019
London Stock Exchange and Wizz Air“Investors appear to be pricing in a positive resolution to the new round of trade talks between the US and China given how mining and oil shares lead the FTSE 100 higher on Wednesday.
“Sterling rises by 0.27% against the US dollar to $1.3103 and by 0.18% against the euro to €1.1451 following the latest developments in the Brexit saga. But it’s not...
29 January 2019
Domino’s Pizza and Royal Mail“The latest machinations in the House of Commons over Brexit will take place tonight. With sterling still volatile against this backdrop, the FTSE 100 was on the march, recovering some of the losses seen in recent days to trade more than 1% higher early on. “The index is being powered by heavyweight tobacco stocks British American Tobacco and...
28 January 2019
Will Apple sweeten or sour sentiment with profit guidance after its Q1s on Tuesday?“Investors in Apple – and technology stocks more generally – will be looking toward the company’s first-quarter results on Tuesday night for some reassurance after the profit warning on 3 January and the important numbers will not be those for Q1 but any guidance from boss Tim Cook about the second quarter and beyond,” says Russ Mould, AJ Bell...
28 January 2019
Marks & Spencer / Ocado and Paragon Banking“Markets are bracing themselves for the next big Brexit hurdle where MPs will vote on Tuesday on a series of amendments to the Prime Minister’s plans. The US Federal Reserve will also meet later in the week to decide if US interest rates should go up. “Against this backdrop the pound didn’t continue the rally seen earlier this year, perhaps...
25 January 2019
Fuller, Smith & Turner and Earthport“Despite a further advance in sterling on reports the DUP may be softening its opposition to Theresa May’s Brexit deal, the FTSE 100 manages some gains on Friday morning as commodity price strength linked to geo-political concerns helps lift the resources space. “Traditionally a stronger pound is bad news for the FTSE given its bias towards...
24 January 2019
Fevertree“It’s a mixed day for the markets with the FTSE 100 down 0.4%, the FTSE 250 flat and most of the major indices in Continental Europe down slightly. After moderate gains on Wall Street last night, Asian stocks struggle to find direction on Thursday with Japan’s Nikkei index down 0.1% and Hong Kong’s Hang Seng index up 0.4%. “On the UK market...
23 January 2019
Weak US housing sales raise questions for Ferguson“As a result of the US Government shutdown investors have been deprived of a lot of the regular macroeconomic data upon which they rely, although in the case of the US housing market the lack of fresh numbers may have been a blessing, because December’s existing homes sales data were quite frightening,” says Russ Mould, AJ Bell Investment Director...
23 January 2019
Metro Bank and Burberry“Some of the largest companies by size are having a bad day which means markets are being dragged down. British American Tobacco, Royal Dutch Shell, Reckitt Benckiser and Barclays are among the top fallers on the FTSE, helping to pull down the blue chip index by 0.5% to 6,864. “This follows a weak session on Wall Street last night where the major...
22 January 2019
Dixons Carphone and Kier“Markets looked a bit wobbly on Tuesday with weakness in natural resource companies and financial stocks dragging the FTSE 100 down 0.3% to 6,950. “Asian markets were also looking gloomy with declines across the major indices as investors worried once again about a slowdown in global growth. “Sterling was also weak against the US dollar and euro as...