17 October 2018
Subscriber growth boosts Netflix but cash flow and valuation questions remain“Investors in Netflix will be breathing a sigh of relief after the media services provider handily beat subscriber growth forecasts for the third quarter and raised expectations for the final three months of the year,” says Russ Mould, AJ Bell Investment Director. “Bulls of the stock market more generally will also be delighted, especially if...
17 October 2018
Autumn stumble brings defensive (and value) sectors back into focus“The FTSE All-Share is down by 10% from the closing all-time high of 4,324 reached in May and the autumn shake-down also means that the index is down by 8% for the year,” says Russ Mould, AJ Bell Investment Director.
“The shift in the market’s mood music can also be seen in which sectors are doing well and which are doing badly. Just 10 of the 39...
17 October 2018
Pearson, ASOS and Housebuilders: Barratt Developments / Crest Nicholson“Following a very strong show on Wall Street last night, markets across Europe and Asia did their best to push forward on Wednesday. The FTSE 100 nudged up 0.1% in early trading to 7,065 with pharmaceuticals, tech and financials in fashion,” says Russ Mould, Investment Director at AJ Bell.
Pearson“Is the market now warming to education publishing...
17 October 2018
9 ways savers can prepare for the BudgetChancellor Phillip Hammond set the usual pre-Budget rumour mill into overdrive last week when he told journalists the current pension tax relief system is eye-wateringly expensive .
Most have taken these comments as a hint retirement savings incentives will be cut once again on 29 October – although the Government’s response to the Treasury...
16 October 2018
Supermarkets: Co-op, Morrisons, Tesco and Sainsbury’s and Merlin Entertainments“Gains in European and Asian markets failed to extend to London on Tuesday morning, leaving the FTSE 100 flat at 7,026. Strength among utilities and insurers was offset by weakness in miners and tobacco stocks. Notable macro news included a cooling in China’s producer price inflation for the third month in a row,” says Russ Mould, Investment...
15 October 2018
Greencore and Superdry“There is a noticeable lack of bargain hunters on Monday morning as last Friday’s rebound in select parts of the market fails to extend into the new working week. The FTSE 100 was down 0.1% in early trading at 6,988 with investors clearly lacking confidence to snap up stocks whose share prices were badly damaged in last week’s market sell-off. “On...
12 October 2018
Markets: did any big shares rise during the past week's turmoil?“Stock markets are fighting back after a horrific week. On Friday, both London and the main European markets were in positive territory, so too Asia. Commodity prices also picked up with notable gains in gold and oil. “While it is too early to tell the precise mood of investors, it initially looks as if there are some individuals regaining an...
11 October 2018
Hays and Keller“In the context of the sell-offs seen overnight in Asia and across the Atlantic the FTSE 100 made a relatively solid start, though it is still down more than 1% in early trading.
“Whether the US Federal Reserve is, as President Trump argues, ‘crazy’ to be lifting interest rates the prospect of further hikes certainly seems to be a catalyst for a...
10 October 2018
Quantity and quality of FTSE 100 earnings both improve even as the index struggles“As the FTSE 100 remains in the grip of a global bout of ‘risk-off’ sentiment, investors can draw some reassurance from how the quantity and quality of UK plc’s earnings seem to be improving,” says Russ Mould, AJ Bell Investment Director.
Quantity of earnings
“Aggregate pre-tax profit forecasts for the FTSE 100 in 2018 continue to rise and now...
10 October 2018
Patisserie Holdings and Hollywood Bowl“The FTSE 100 is back in negative territory once again, with miners and engineers among those worst hit. Also struggling is the packaging sector which has experienced a big sell-off in recent weeks, despite it being an industry with structural growth thanks to the rise of e-commerce and the need for lots of packaging to send out goods. “Markets...
9 October 2018
Aviva and Greggs“The FTSE 100’s losing streak has come to an end on Tuesday morning, much to investors’ relief. Having fallen 3.7% in three trading days to Monday amid concerns over rising US Treasury yields, the market now finds its feet with a 2 point rise to 7,235. European markets are also acting in the same way with new-found stability. “Miners, in particular...
8 October 2018
French Connection and Lancashire“Against last Friday’s widespread sell-off in global markets, Monday’s 0.2% fall in the FTSE 100 could have been a lot worse. The minimal decline would suggest that investors aren’t in panic mode despite the negative headlines about new troubles in the bond market. “ Ocado, Tesco and Vodafone are among the worst FTSE 100 performers on Monday...
5 October 2018
Unilever and Intu“The FTSE 100 took another tumble this morning as reports of an imminent breakthrough on Brexit helped lift sterling ahead of the key US non-farm payrolls release out this afternoon,” says AJ Bell Investment Director Russ Mould.
Unilever“Today’s climbdown from Unilever over a plan which would have necessitated its exit from the FTSE 100 is an...
4 October 2018
Ted Baker and DFS"Markets across Europe and Asia tripped up on Thursday after a rise in US Treasury yields to levels not seen since 2011. The Treasury yield is commonly seen as the risk-free rate for investing, so an increase tends to be negative for other asset classes including shares. "A higher oil price lifted Royal Dutch Shell and BP, which are among the top...
3 October 2018
Thai troubles take some of the gloss away from Tesco’s UK turnaround“An eleventh consecutive increase in like-for-like sales in the UK, a strong performance from £4 billion acquisition Booker and a 67% increase in the interim dividend are not proving enough for Tesco shareholders, as the (adjusted) operating profit figure has undershot analysts’ forecasts by some 5%,” says Russ Mould, AJ Bell Investment Director.
“...
3 October 2018
Crunch time approaches for Unilever’s Netherlands moveOn 26 October UK shareholders in consumer goods giant Unilever will vote on a plan which would see the business exit the FTSE 100 index as it abandons a dual UK-Dutch stock market listing and moves its headquarters to Rotterdam.
This meeting will follow one 24 hours earlier in the Netherlands where Unilever needs 50% approval from its Dutch...
2 October 2018
Ferguson and St Ives / Kin and Carta“Just as one market issue gets solved, with progress towards a new trade deal between the US, Mexico and Canada, so President Trump reopens old wounds with China and the EU. This led to weakness in Asian markets overnight and, combined with ongoing ructions over Italy, means the FTSE 100 is falling despite a weaker pound. “The negative correlation...
1 October 2018
Ryanair“The FTSE is sitting still at 7,511 as we start the final quarter of the year. Stronger action on the markets can be seen overseas where Japan’s Nikkei 225 has hit a 27-year high,” says Russ Mould, Investment Director at AJ Bell.
Ryanair“A cocktail of problems has left Ryanair looking very weak and its shares trading at a two-year low. A 12%...
28 September 2018
Serco and Funding Circle“Although the stock market is a bit juddery at the moment, the underlying trend is still pointing upwards despite some moments of weakness. While the FTSE 100 was flat on Friday morning at 7,539, it is on track to finish the week 0.6% ahead.
“A continuation of this trend would imply the FTSE 100 has a good chance of moving back into positive...
27 September 2018
Sunshine helps Next but retailer’s online expertise is the real ray of light“As many suspected after the May and August trading updates, Next had been doing its best to keep a lid on sales and profit forecasts but boss Lord Wolfson has now officially raised the company’s guidance for the year to January,” says Russ Mould, AJ Bell Investment Director. “As a result, Next now expects to hold pre-tax profits broadly flat in...
27 September 2018
TUI and Mitchells & Butlers“There is a sea of red on the markets today, with Continental Europe and Asia faring the worst. Europe was hit by concerns over Italy’s budget meeting, the latest US interest rate hike served to trouble investors, and Hong Kong’s Hang Seng index saw particular weakness in technology stocks. “On the London market, the FTSE 100 dipped 0.1% to 7,502...
26 September 2018
BooHoo and AA“It is a mixed day on the markets with a flat performance in the UK and Europe and a weak day in India, although Hong Kong bucks the trend with a strong day on the Hang Seng index (up 1.3%). The London market doesn’t have any clear patterns with none of the big sector constituents moving in unison. “In early trading, the best performer on the FTSE...
25 September 2018
Next and Card Factory“A stronger oil price gave a welcome lift to the FTSE 100 on Tuesday, pushing up shares in Royal Dutch Shell and BP whose movements have a large influence on the overall stock market index. A stronger showing from tobacco and pharma stocks also gave support to the FTSE,” says Russ Mould, Investment Director at AJ Bell.
Next“A big component of...
24 September 2018
Randgold Resources and Thomas Cook“The FTSE 100 has failed to sustain positive momentum seen last week, with the index falling 0.3% to 7,468 on Monday. Tech, banking and natural resources are among the sectors struggling to win over investors, despite the presence of two M&A deals in the FTSE 100 – being the market reacting to Sky’s auction at the weekend and news of Randgold...
21 September 2018
Just Eat, Uber, Deliveroo and Moss Bros“Every small step forward counts in the world of investing and so it is pleasing to see the FTSE 100 head into the weekend on a positive note. The blue chip index is on track to end the week up 1.7%, a decent result given that we’ve spent the previous few months with a miserable performance on the markets. The biggest movers on the week have been...