18 September 2020
Markets generally calm but travel and banking stocks weaker on new UK lockdown fears“With a whirlwind of political, economic, and healthcare activity creating a volatile backdrop, investors took time on Friday to take stock of events. Markets were relatively calm with the FTSE 100 trading 0.2% lower at 6,036, similar movements in many parts of mainland Europe, but small gains seen across Asia,” says Russ Mould, Investment Director...
17 September 2020
Central bank policy pummels banking stocks (again)HSBC, Standard Chartered, Barclays and NatWest are all toward the bottom of the performance list in the FTSE 100 in early trading after the latest monetary policy statements from the US Federal Reserve and the Bank of Japan, as both authorities promise to anchor interest rates at record lows. The Bank of England, already debating the merits of...
17 September 2020
Markets retreat after Fed guidance, Next fights back, and tough times for Trainline“It’s a miserable day on the markets as investors reacted coldly to the Federal Reserve’s latest comments,” says Russ Mould, Investment Director at AJ Bell.
“The lack of new economic support measures and simply to have guidance for rates to remain low for longer left markets disappointed.
“The FTSE 100 fell 0.9% to 6,026, Germany’s DAX index...
15 September 2020
Why has the UK stock market done so badly since the 2016 Brexit vote?Whatever their views on the political, economic and social rights or wrongs of Brexit, and whatever their views on the Government’s latest negotiating tactics and Parliamentary manoeuvrings on the topic, all investors have no choice but to agree on one thing – the UK equity market has been a terrible performer since the Brexit vote on 23 June 2016...
15 September 2020
FTSE starts higher with jobs and Brexit in focus, and Ocado and Marks & Spencer venture off to a strong start“As the US markets regained their poise overnight following the recent wobble the FTSE 100 made its own steady start, again looking to solidify its position above the psychologically significant 6,000 threshold,” says AJ Bell Investment Director Russ Mould.
“Providing a boost to the FTSE’s overseas earners was the continued weakness in sterling on...
14 September 2020
M&A splurge helps lift FTSE and BP predicts oil demand peak“Mergers and acquisitions activity showed there was still a bit of life in the market – helping the FTSE 100 to a positive start on Monday as it consolidated its position above the 6,000 mark,” says AJ Bell Investment Director Russ Mould.
“Along with US pharma giant Gilead buying a cancer specialist for north of $20 billion, Japanese investor...
11 September 2020
FTSE higher despite US losses as Brexit tensions build, and Rio Tinto CEO to depart after caves scandal“This was the week when Brexit returned as a live issue for the markets. In the short-term the increased chances of a messy exit from the EU have been a tailwind for the UK’s flagship stock market index which looks on course for a positive week despite investors being challenged elsewhere by heavy selling on US markets,” says AJ Bell Investment...
10 September 2020
International Consolidated Airlines goes cap in hand, and Games Workshop beats expectations yet again“After US stocks last night bounced back from a week of misery, this improved sentiment managed to extend to parts of Europe and Asia on Thursday. One exception was the FTSE 100 which slipped 0.4% to 5,990 with healthcare, mining and energy stocks all weak,” says Russ Mould, Investment Director at AJ Bell.
“ BP was among the top fallers on the FTSE...
9 September 2020
What could make ‘value’ stocks finally outperform tech and ‘growth’ once more?Warren Buffett once noted that ‘A pack of lemmings looks like a bunch of rugged industrialists compared with Wall Street when it gets a concept in its teeth’ and those investors who piled in to tech stocks must now ask themselves why they were buying and what they should do after three days of sharp falls.
If they were just buying because they...
9 September 2020
FTSE shakes off big US losses“The higher you climb the further you have to fall. The US market’s recent massive outperformance of the FTSE 100, which has been stuck in the foothills following the coronavirus correction, perhaps explains why the market wobble across the Atlantic hasn’t had quite the same impact in London,” says AJ Bell Investment Director Russ Mould.
“Also...
8 September 2020
Royal Mail gets parcel surge, and JD Sports comes out on top“It’s not often that we see the UK as being ahead of other markets in Europe, but that’s the situation on Tuesday. The FTSE 100 jumped 0.5% to 5,964 whereas all the other major European indices fell,” says Russ Mould, Investment Director at AJ Bell.
“Helping the FTSE once more was sustained weakness in the pound, giving a boost to the many overseas...
7 September 2020
FTSE makes gains after market wobble and Primark sales better than expected for Associated British Foods“After a difficult couple of weeks for investors, a measure of calm returned on Monday with the FTSE 100 enjoying solid gains to trade firmly above the 5,800 mark,” says AJ Bell Investment Director Russ Mould.
“While they may not all physically be returning to their desks, many City professionals will have returned to work this week from their...
4 September 2020
Relief as European markets stabilise following Thursday’s global sell-off, and housebuilders under the spotlight over leasehold scandal“Investors had a shock yesterday when a brutal sell-off in tech stocks caused a big wobble in global equities, with the tech-heavy US markets taking the worst hit. The FTSE 100’s 1.5% decline was nothing compared to the Nasdaq’s 5% slump because the UK market has very little tech exposure,” says Russ Mould, Investment Director at AJ Bell.
“Friday...
3 September 2020
Stimulus and vaccine hopes tip the scales in favour of the FTSE, and Jet2-owner Dart’s recovery hits new headwinds“The markets feel like they are being weighed on a set of scales at the moment with stimulus and vaccine hopes on one side and Covid-19 second wave fears and recession on the other,” says AJ Bell Investment Director Russ Mould.
“After positive signs that politicians in the US might agree a new package to reinvigorate the economy and news of...
2 September 2020
Barratt makes sure its balance sheet stays as safe as housesBarratt’s confirmation of its decision of 6 July to cancel both its planned second-half and special dividends for fiscal 2020, saving some £375 million in the process, may surprise some but the house builder’s reticence to lavish cash upon investors – at least for now – makes sense for several reasons. The early share price gains suggest that...
2 September 2020
Markets rebound after bad start to September, while Barratt prioritises balance sheet strength over dividends“After a brutal couple of sessions, the FTSE 100 has bounced back with investors flocking to a mixture of companies offering strong growth prospects such as Aveva as well as ones that have been beaten up and look cheap relative to history including ITV,” says Russ Mould, Investment Director at AJ Bell.
“ Rolls-Royce jumped 5.5% to 218p after...
1 September 2020
FTSE follows downbeat lead after Bank Holiday, while Saga finds a white knight“The FTSE 100 was nursing a hangover after the Bank Holiday as it caught up with yesterday’s downbeat sentiment in the US and Europe and fell further from the 6,000 level it held for much of the summer," says AJ Bell investment director Russ Mould.
“Europe appeared to have moved on from its Monday blues as it reacted to a positive update on Chinese...
28 August 2020
Fed policy overhaul fails to drive equity markets“Markets haven’t got over-excited by the US Federal Reserve’s new stance on letting inflation run higher, despite it implying that interest rates will stay lower for longer – normally something that would benefit equities. One could argue that the Fed following this path was already expected by the market, hence why stocks haven’t surged ahead,”...
27 August 2020
Markets subdued but volatility up, and Rolls-Royce still biding its time with regards to an equity raise“Markets continued to tread water ahead of a speech later today from Federal Reserve chairman Jerome Powell,” says Russ Mould, Investment Director at AJ Bell.
“Investors wants guidance on how the Fed might push inflation higher and what that means for monetary policy going forward.
“Interestingly, the VIX measure of implied stock market volatility...
26 August 2020
Markets pause ahead of important speech on Thursday from Fed chairman“Equities saw limited movement on Wednesday as investors took stock of events and paused ahead of a speech on Thursday by Federal Reserve chairman Jerome Powell,” says Russ Mould, Investment Director at AJ Bell.
“The market is eager for guidance on how the Fed might push inflation higher and what that means for monetary policy going forward.
“Powe...
25 August 2020
Another strong day for markets and DFS enjoys a sweet spot“A second strong day on the markets was most welcome news. Driving the latest gains in equities was renewed hope of an amicable trade deal between the US and China. While optimism has quickly turned to pessimism on this topic many times in the past, it’s encouraging to see the two sides talking rationally again", says Russ Mould, Investment...
24 August 2020
Equities soar and Wetherspoon braces for end of consumer spending incentive“Equities kicked the new week off with a bang thanks to renewed optimism over treating coronavirus. Stocks across Asia and Europe rallied following a decision by the US Food and Drug Administration to give emergency authorisation for the use of plasma to treat coronavirus patients. US President Donald Trump said the treatment could reduce deaths by...
21 August 2020
FTSE struggles to lift itself up as the trading week draws to a close“If there was hope the FTSE 100 could pick itself back up after Thursday’s big stumble then Friday has only brought disappointment as the index slipped back modestly to trade below the 6,000 mark for the first time since late July,” says AJ Bell Investment Director Russ Mould.
“Yesterday’s sell-off was accompanied by a plunge in oil prices, with...
20 August 2020
Woodford investors to receive a further £183mInvestors in the shuttered Woodford Equity Income fund will get their next tranche of money before the end of this month. Link has revealed that it will pay out just over £183m of cash to investors next week, following the sale of a number of assets. This payout adds to the £142m distribution made in March and the £2.1bn paid out in January and...
20 August 2020
Frasers holds up thanks to acquisitions and AO still enjoying a sweet spot“A sea of red greeted investors on Thursday with equities falling across Europe and Asia, mirroring the performance on Wall Street last night. Markets didn’t like the US Federal Reserve’s latest comments where it said there were still risks to economic recovery,” says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 fell 0.9% to 6,057 with...