29 July 2020
Smurfit Kappa packs a dividend punch"The decision to pay a first-half dividend of €0.8090 means the packaging play Smurfit Kappa becomes the second FTSE 100 firm to return to the dividend list, after Land Securities’ statement that it intends to do so in the autumn, and the eleventh overall", says Russ Mould, AJ Bell Investment Director.
"The total value of the restored payments so...
29 July 2020
Investment bank can’t help Barclays beat the bad-loan bluesWho on earth would want to be a bank in the current environment? Banks are the fourth-worst performing sector in the FTSE All-Share this year (out of 39) and Barclays’ interim results show many of the reasons why: rising bad loans thanks the pandemic and associated economic downturn, pressure on net interest margins thanks to record-low interest...
29 July 2020
Chinese stocks rally, investors await Fed decision and Next beats expectations“Parts of Asia rallied on Wednesday including a 2.1% rise in China’s SSE Composite, driven by tech and healthcare stocks. However, Japan’s Nikkei 225 fell 1.2% with utilities and basic materials among the sectors out of fashion,” says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 was flat at 6,125 as strength among consumer goods...
28 July 2020
Greggs’ slow road to recovery and Games Workshop provides the right kind of escape“Stocks pushed ahead on Tuesday amid progress with new US government stimulus efforts, including a 0.7% rise in the FTSE 100 to 6,149. Hong Kong’s Hang Seng jumped by the same amount, while Madrid’s IBEX 35 reversed yesterday’s decline with a 0.6% advance,” says Russ Mould, Investment Director at AJ Bell.
“The gold price briefly hit $1,980 per...
27 July 2020
Gold could shine brighter still as precious metal reaches new record highGold’s potential as an investment arouses strong emotions. Some investors love it as a potential hedge against inflation, some against deflation and some against unforeseeable disasters and market dislocations, while others detest it, viewing the precious metal as a barbarous relic or inert useless lump. But with gold reaching a new all-time high...
27 July 2020
UK’s new quarantine rules on arrivals from Spain derails travel sector comeback“Equities took a small step backwards at the start of the new week including a 0.4% decline in the FTSE 100 to 6,098. The UK market was dragged down by weakness in telecoms, consumer cyclicals and financials. Among the stocks rising, miners, utilities and technology firms were most in demand,” says Russ Mould, Investment Director at AJ Bell.
“The...
24 July 2020
Five tips for first-time investors spooked by the market crashMore than a quarter of young people have been spooked by this year’s market falls and put off investing altogether, our research shows*. The market volatility this year has created an age divide in how investors have reacted, with older savers being more likely to be unaffected by the crisis or deciding to invest more, while younger people have...
24 July 2020
Global markets retreat and Centrica finds new burst of energy from US deal“It’s a sour end to the trading week with hefty declines across Europe and Asia, echoing a miserable showing on Wall Street last night,” says Russ Mould, Investment Director at AJ Bell.
“Spooking investors was heightened tensions between Asia and North America whereby China ordered the US to close one of its consulates in Chengdu. Adding to the...
23 July 2020
Unilever rewarded for stability, short but sweet update from Tate & Lyle“The markets regained some poise on Thursday supported by positive news on a potential coronavirus vaccine – seen by many as the main route back to some form of normality – and positive corporate results on both sides of the Atlantic,” says Russ Mould, Investment Director at AJ Bell.
“Consumer goods giant Unilever did much better than expected with...
23 July 2020
AJ Bell funds – update to property holdingHere at AJ Bell Investments, we want our range of AJ Bell funds to offer a multi-asset approach to investing. That’s why we have kept property part of their asset allocation, despite periods of underperformance. Property offers something different within our funds, which are otherwise largely made up of bonds and shares.
Asset Class Index 5 Year...
23 July 2020
AJ Bell Favourite funds update – new ETFs addedOn 28 April 2000, the first ETF – which tracked the FTSE 100 – listed on the London Stock Exchange. Unlike an active fund, which aims to outperform a financial index such as the FTSE 100, an ETF (or tracker) aims to replicate an index’s return.
It’s proved a popular formula. Since that debut 20 years ago, ETFs have snowballed in number. By the end...
22 July 2020
Shareholders raise a (soft) drink to Nichols as firm returns to dividend list“Soft-drink maker Nichols’ declaration of a 28p-per-share interim dividend means the Newton-le-Willows firm will become the fourth in the UK to re-join the dividend list, following Focusrite, Palace Capital and Land Securities, having cancelled a previous payment,” says Russ Mould, AJ Bell Investment Director.
“Land Securities has yet to confirm...
22 July 2020
Kingfisher rides lockdown DIY boom and Melrose posts second quarter loss“It has been an interesting start to the second half for the markets as they swing between despair at the mounting number of Covid-19 cases across the globe and hope driven by financial stimulus and developments on a potential vaccine, says AJ Bell Investment Director Russ Mould.
“Today may not have been a day of despair but there was a downbeat...
21 July 2020
Tax take rises as nation weans itself off lockdown and Government supportIn the past three months the Government has borrowed more than double its entire borrowing for last year, with June marking the third highest month on record for borrowing. The cost of supporting the economy and businesses through the Covid-19 crisis in June came in at £35.5bn, five times the level seen last June.
However, at least the amount of...
21 July 2020
Markets rally on EU deal and GVC faces tax probe“Global markets were in risk-on mode on Tuesday after EU leaders struck a deal on a €750 billion recovery package and investors continued to be hopeful about a coronavirus vaccine following recent updates on various drug trials. The DAX jumped by 1.4% to 13,228, putting the European index at its highest level since February,” says Russ Mould...
20 July 2020
FCA to be given power to regulate cryptocurrenciesAfter a surge in cryptocurrency buying in the past year, the Government has decided to take action and proposed that the FCA be given powers to regulate adverts and promotions in the cryptocurrency market. The FCA has previously said that its hands were tied in some of its work on cryptocurrencies as it didn’t have the power to regulate much of the...
20 July 2020
Pharma/biotech sector in vogue on Covid-19 trial updates, and Future is delivering the goods“The world is desperate for a coronavirus vaccine and it seems that investors were only happy to put their money in one place on Monday – healthcare,” says Russ Mould, Investment Director at AJ Bell.
“Markets had a shaky start to the new week with mixed progress in Asia and declines across Europe including a 1% decline in the FTSE 100 to 6,224.
“On...
17 July 2020
Markets finish the week treading water and Homeserve demonstrates its resilience“Markets ended the week on a lacklustre note with the FTSE 100 only managing a 0.1% gain to 6,258, minor increases among European stocks, and a mixed performance from Asia,” says Russ Mould, Investment Director at AJ Bell.
“It’s a continuation of the push-pull factors influencing stocks. On one hand there is ongoing nervousness about the pandemic...
16 July 2020
GVC losses its architect and Hays hit by global job cut“The markets continue to demonstrate a one step forward, one step back behavioural pattern. Today is a backwards day with the FTSE 100 down 0.5%, Germany’s DAX index falling 0.7%, Japan’s Nikkei 225 sliding 0.8% and the Hang Seng in Hong Kong trading 1.7% lower,” says Russ Mould, Investment Director at AJ Bell.
“Weighing on global markets was new...
15 July 2020
First uptick in inflation since lockdownInflation edged upwards slightly in June – the first increase this year – with CPI rising from 0.5% to 0.6% as lockdown eased and the usual seasonal sales of items went out the window. Toys and games, clothing and some pharmacy items all served to push up prices in the month.
Clothing prices pushed up inflation, as they would usually follow a...
15 July 2020
ASOS struggles to meet casualwear demand and Burberry faces ongoing coronavirus impact“When the US sneezes the world gets a cold and when the US is feeling chipper it seems everyone else is in a better mood too,” says AJ Bell Investment Director Russ Mould.
“A positive start to the second quarter results season and a signal from the Federal Reserve that it will keep financial stimulus in place helped stoke a rally on Wall Street...
14 July 2020
M&G Property Portfolio enters eighth month of suspensionInvestors in the M&G Property Portfolio will have to wait at least another month before they can get their hands on their money, with the fund’s suspension extended for another 28 days. Investors have endured more than seven months of suspension so far and it now feels likely that the extension could continue until the end of the year.
This update...
14 July 2020
Ocado still loss-making and car retailers bounce back“UK, European and Asian shares followed Wall Street’s plunge last night with a weak session on Tuesday. Ongoing flare-ups with coronavirus in the US raised concerns that the country is struggling to get the pandemic under control. Making matters worse was heightened tensions between the US and China, this time over offshore resources in parts of...
13 July 2020
UK stocks rally ahead of defining week“The FTSE 100 was firmly higher on Monday morning, taking its cue from strong Asian markets to rise 1% to 6,161.87,” says AJ Bell Investment Director Russ Mould.
“This mini-surge comes ahead of a week which could determine whether the next leg of the market’s response to coronavirus is to move up or down.
“The US second quarter earnings season...
10 July 2020
Investor optimism fades as Covid-19 aftershocks continue“The markets have found it tough to make tangible progress since early June and that trend continued on Friday,” says AJ Bell Investment Director Russ Mould.
“The FTSE 100 was down 0.3% to 6,030.83, flirting with the 6,000 level for the first time since May and bringing to a close a week which has seen investor optimism fade as the global battle...