6 May 2021
UK market shrugs off tech slide as investors opt for ‘jam today’ over ‘jam tomorrow’“The UK equity market seems unconcerned by the latest stumble in big technology stocks in the USA which dragged down the headline NASDAQ and S&P 500 indices on Tuesday night but it is interesting to note that it is cyclical and recovery plays, such as building materials play CRH, the miners, banks and plumbers’ merchant Ferguson which are leading...
6 May 2021
Positive updates lift FTSE with Scottish poll in focus, Next stays cautious despite bumper sales, and momentum is building at Barratt“The FTSE 100 built on yesterday’s gains to reach a new 14-month high helped by positive corporate updates,” says AJ Bell Investment Director Russ Mould.
“Sterling is likely to be in focus over the next 24 hours with the outcome of the Scottish elections front and centre.
“If the SNP can secure the outright majority it says will be a mandate for...
5 May 2021
FTSE 100 dividend payments swamp cuts and cancellations in AprilHSBC may have disappointed a few optimists who had been hoping for a first-quarter dividend, and BP unveiled a fourth straight year-on-year cut. But the oil major’s move surprised no-one, the bank dangled the possibility of an interim payment, and overall in April UK-listed firms that made or restored payments to investors hugely outnumbered those...
5 May 2021
US sell-off fails to derail European stocks and the advertising market is heating up for ITV“Despite last night’s sell-off for US tech stocks including a near-2% decline in the Nasdaq index, European markets were in fairly decent mood on Wednesday thanks to well-received updates from the likes of Deutsche Post and FLSmidth,” says Russ Mould, Investment Director at AJ Bell.
“Weakness in US stocks can be explained by various reasons...
4 May 2021
Post-break bounce for the FTSE as travel stocks boosted by EU travel plans“Bank Holidays seem to be having a restorative effect on the FTSE 100, after coming back from Easter full of vim and vigour, today saw the index make another strong post-break advance, reclaiming the 7,000 mantle,” says AJ Bell Investment Director Russ Mould.
“The catalyst for this latest move higher is chatter about a commodities supercycle with...
30 April 2021
Barclays’ shares slump, FTSE strengthens, AstraZeneca reveals Covid vaccine sales and Darktrace pops on IPO Barclays“It may be boom time for the UK economy according to Barclays chief executive Jes Staley but not for the company itself judging by the reaction to its latest trading update,” says Russ Mould, Investment Director at AJ Bell.
“The decision not to adjust its previous bad debt estimates, unlike most of its peer group, appears to have spooked...
30 April 2021
How to spot the next round of market winners (and dodge the losers)“Fund management legend Sir John Templeton once asserted that ‘Bull markets are founded on pessimism, grow on scepticism, mature on optimism and die on euphoria’ and investors could perhaps use this framework to work out where are now in the (bull) market cycle,” says AJ Bell Investment Director Russ Mould.
“It might just help them spot where...
29 April 2021
Fed and US tech help lift FTSE 100, BT could kick sport into touch, and Unilever beats sales growth goal“Continuing strong numbers out of the US technology sector, together with the US Federal Reserve’s latest attempts to allay fears of any imminent rate rise, laid the foundations for the FTSE 100 to mount its latest assault on the 7,000 level,” says AJ Bell Investment Director Russ Mould.
“ Apple announced a bumper share buyback plan and Facebook...
28 April 2021
Lloyds beats expectations and helps drive up the FTSE alongside WPP“The market has been pricing in a brighter outlook for Lloyds and the bank has certainly delivered some impressive numbers in its first quarter update,” says Russ Mould, Investment Director at AJ Bell.
“Net interest margin is better than expected, being the difference between what it earns from interest charged on loans and interest paid on...
27 April 2021
HSBC is doing better than expected and BP hits debt target early“ BP did its best to lift the FTSE 100, but the index struggled with headwinds from Aveva, where CEO Craig Hayman has quit, and various mining stocks,” comments Russ Mould, Investment Director at AJ Bell.
"The UK index was flat at 6,966, albeit still giving investors hope that it will soon break through the 7,000 level again.
“We’re now in a very...
26 April 2021
IMI share buyback takes total this year to over £4bnIMI’s announcement of a £200 million cash return to its investors, alongside an upbeat trading statement, takes the total value of share buybacks announced in the UK this year over the £4 billion mark. A bounce in IMI’s shares suggest that shareholders are happy about the prospect of the windfall and the confidence in the future that it signifies...
26 April 2021
Tate & Lyle break-up in focus and Pearson gets digital learning boost“A strong pound set the tone for an important week on the UK stock market as the banks start reporting their first quarter results. NatWest and Barclays will be in focus later in the week, with investors keen to hear about future dividends,” says Russ Mould, investment director at AJ Bell.
“The pound advanced 0.4% against both the US dollar at $1...
23 April 2021
Investor sentiment remains fragile as FTSE falls, while FirstGroup shares soar on US disposals“Consumer sentiment may be surging in the UK as covid restrictions are lifted but investor sentiment remains pretty fragile after Tuesday’s big sell-off,” says AJ Bell investment director Russ Mould.
“Friday’s market open was the latest reminder that the FTSE 100 is in no way a proxy for the UK economy. In fact, in the short-term good news for the...
22 April 2021
Taylor Wimpey sees robust demand, and Rentokil’s rat delight may not be enough“Stock markets across Europe and Asia were generally in positive territory on Thursday, thanks to positive earnings reports from some big-name companies and a strong showing from miners and industrials,” says Russ Mould, investment director at AJ Bell.
“ Nestle has enjoyed strong demand for coffee, dairy products and pet food, helping it report...
21 April 2021
FTSE 100 gets back on its feet after big fall, while Netflix’s problems pile up“After suffering its most substantial fall in two months, investors will be relieved to see the FTSE 100 dust itself off and get fight back on Wednesday as it looks to regain some of the big losses,” says AJ Bell investment director Russ Mould.
“The move higher comes despite one of the market’s big fears – inflation – ticking up in the UK. It...
21 April 2021
A big week for the big five FTSE 100 banksAll of them are back on the dividend list, three are already buying back shares and the sector ranks as the third-best performer within the FTSE 350 in the year to date, so next week’s results from the Big Five banks will be a key test of their apparent return to favour, and whether it can last. All of this quintet are due to report first-quarter...
20 April 2021
FTSE 100 surrenders 7,000 level after US tech sell-off, and Primark sees record sales“The FTSE 100 opened slightly lower, falling back below 7,000 after mixed trading in Asia and a fall in the US as tech stocks slumped,” says AJ Bell Investment Director Russ Mould.
“Investors seem to be struggling to make up their minds on where we are with the Covid-19 pandemic, unsurprisingly as this is a global picture with plenty of moving...
19 April 2021
Markets keep rising as they laugh off Archegos drama“As a new trading week begins, the FTSE All-World index stands at a new all-time high, as does America’s S&P 500, while the FTSE 100 is holding firm above 7,000. All three benchmarks are being buoyed by vaccination programmes, fiscal stimulus from Government and ultra-loose monetary policy from central banks, a combination which is enabling markets...
19 April 2021
FTSE 100 consolidates gains above 7,000“The FTSE 100 consolidated its position as investors balanced reopening optimism with a need to take stock after the index closed above 7,000 for the first time post-Covid,” says AJ Bell Investment Director Russ Mould.
“Sunny weather should have given retailers and hospitality businesses in England a boost over the weekend and this helps explain...
16 April 2021
FTSE 100 breaks through 7,000, China’s economy soars, and FTSE 250 continues to achieve new record highs“The FTSE 100 jumped through the 7,000 level for the first time since February 2020, rising 0.4% to 7,013,” says Russ Mould, Investment Director at AJ Bell.
“This represents a massive milestone in recovering from the terrible pandemic and shows how investors’ confidence has completely changed since just over a year ago.
“The market was...
15 April 2021
What would help the FTSE 100 get above 7,000 and keep goingAt face value, it does seem odd that the FTSE 100 is trading above its pre-pandemic levels, even if the number of daily new covid-19 cases are back to where they were last March and last September and the vaccination programme continues apace.
But it does make sense if you think that the consensus earnings forecasts for the index are going to be...
15 April 2021
Deliveroo fails to win over the market and UK stocks continue to shine Deliveroo“Troubled investors who backed Deliveroo at its IPO will have been keeping their fingers crossed for a bit of kangaroo action with the share price following its latest trading update. Alas there is no hopping forward on this news, despite impressive growth figures,” says Russ Mould, Investment Director at AJ Bell.
“Chief executive Will...
14 April 2021
From Pfizer to freedom – the vaccine effect on marketsIt’s now six months since Pfizer announced the success of its vaccine trials, a moment which marked a hugely significant victory in the battle against the coronavirus. Here in the UK, the economy is now beginning to open up, and a strong recovery is expected this year. Looking back, the arrival of vaccines clearly prompted an inflection point in...
14 April 2021
Tesco’s hard work isn’t enough to stop profits falling, while luxury goods provide a small sparkle to a flat UK market Tesco“ Tesco must be frustrated at the fact it has pulled out all the stops to serve the nation during the pandemic, yet earnings have gone into reverse,” says Russ Mould, Investment Director at AJ Bell.
“Falling profit reflects the significant extra costs it has had to stomach to keep shelves stocked, staff and customers safe in-store, and...
13 April 2021
Babcock pushes back on fears of rights issue“It may seem odd that Babcock’s shares are up by quite so much when the firm is flagging £1.7 billion of asset write-downs, more than had been rumoured, but plans for £400 million of asset disposals and a clear statement that the firm will not need to raise money from shareholders are raising hopes that the worst may be over for the embattled...