26 August 2022
Markets poised for Powell at Jackson Hole, UK energy crisis deepens, Micro Focus catches $6 billion bid“The energy crisis continues to escalate in the UK as the latest price cap is announced but for the markets all the focus is on Jackson Hole where, this afternoon UK time, Federal Reserve chair Jerome Powell is set to outline his position on interest rates,” says AJ Bell investment director Russ Mould.
“Gains on Wall Street overnight have helped to...
25 August 2022
UK mortgage approvals and US jobs data UK mortgage approvalsJune’s mortgage approvals figure was 63,726 according to the Bank of England. That undershot economists’ forecasts, representing the seventh time in twelve that approvals had fallen month-on-month and the eleventh consecutive year-on-year decline.
Perhaps most tellingly, that figure also undershot the 12-month average that...
25 August 2022
Bunzl first-half results"After rising by around a sixth over the past year, Bunzl’s share price stands only a fraction below its all-time high, buoyed by June’s trading update, when chief executive Frank van Zanten raised the company’s guidance for 2022 for a second time. Bunzl now expects ‘very good’ revenue growth, compared to a prior forecast of ‘moderate’ growth, and...
25 August 2022
FTSE up after strong trading in US & Asia as Jackson Hole begins, energy producers in focus, CRH delivers double-digit price increases“The FTSE 100 took its cue from strong trading in the US and Asia to make gains on Thursday morning as investors await the crunch Jackson Hole summit in Wyoming,” says AJ Bell investment director Russ Mould.
“There’s a lot riding on US Federal Reserve chair Jerome Powell’s address tomorrow. Speculation is running so hot ahead of his remarks that it...
24 August 2022
Markets lose momentum, Whitbread plans major new hotel on the Strand and Allied Minds heads for the door“Markets seem to have lost their momentum following the rally since mid-June. Investors have become nervous once again, with all eyes on Federal Reserve chair Jerome Powell and what he says this coming Friday,” says Russ Mould, Investment Director at AJ Bell.
“Investors are worried that the US central bank will continue to raise interest rates at...
23 August 2022
FTSE lower as European gas prices surge, Wood Group revenue dips and BT in the clear over Drahi investment“The FTSE 100 was under pressure on Tuesday amid a gloomy global market outlook,” says AJ Bell Investment Director Russ Mould.
“The hopes earlier in the summer that inflation might have peaked, and the Federal Reserve might, in turn, ride to the market’s rescue, are looking increasingly forlorn.
“European natural gas prices saw a renewed surge...
22 August 2022
FTSE downbeat as Jackson Hole looms into view and Cineworld confirms possible bankruptcy filing“The FTSE 100 began Monday in downbeat mood ahead of what could prove to be a critical moment for markets at the end of this week,” says AJ Bell Investment Director Russ Mould.
“The Jackson Hole summit of central bankers and finance ministers is widely expected to see US Federal Reserve chair Jerome Powell take to the floor and puncture optimism...
19 August 2022
Weak consumer backdrop punishes pound, Just Eat gets cash injection from Brazil sale, and Joules goes from bad to worse with another profit warning“The FTSE 100 was broadly flat on Friday after a mixed set of retail sales, and with inflation driving the cost of servicing government debt higher,” says AJ Bell Financial Analyst Danni Hewson.
“The consumer backdrop feels increasingly gloomy and that’s bad news because consumer spending is such an important contributor to the UK economy.
“The...
18 August 2022
Inflation takes a record-breaking bite out of wagesAnother month, another chance for inflation to nibble away at the nation’s pay-packets. Whilst wages are rising, they’re no match for red hot prices and in real terms people’s regular pay fell by 3% in the three months between April and June.
Once again people working in the private sector fared far better than those employed by the public sector...
18 August 2022
FTSE dragged down as several stocks go ex-dividend, Made.com faces emergency fundraise, and AO shares jump“After yesterday’s UK inflation figure shock, it’s no wonder investors weren’t feeling too hungry for equities on Thursday. European markets didn’t want to get out of bed, with minimal movements across the main indices,” says Danni Hewson, Financial Analyst at AJ Bell.
“The FTSE 100 was dragged down by some big names trading without the rights to...
17 August 2022
FTSE flat on inflation reading, Persimmon suffers labour shortages and Boohoo buys stake in Revolution Beauty“The FTSE 100 was flat on Wednesday as UK inflation came in higher than expected,” says AJ Bell financial analyst Danni Hewson.
“Unlike the US, where there is evidence surging prices have started to peak, inflationary pressures look pretty entrenched in the UK with further increases in energy prices still to come.
“The inflation reading will only...
16 August 2022
BHP posts bumper profit, Ted Baker and Darktrace takeover news, Watches of Switzerland customers keep spending and FTSE higher despite signs of economic turmoil“The FTSE 100 enjoyed steady gains despite continuing signs of economic turmoil in the UK,” says AJ Bell Financial Analyst Danni Hewson.
“In a sign of the weaker backdrop, the number of job vacancies fell for the first time in two years, although it is not a clear picture, with serious issues filling roles in certain sectors.
“This makes life...
15 August 2022
FTSE higher, Rightmove flags fall in house prices, weak Chinese data hits miners and Joules hires new boss“Signs that some of the inflationary pressures in the economy may be easing continue to drive gains for stocks, with the FTSE 100 higher on Monday,” says AJ Bell Financial Analyst, Danni Hewson.
“While in global terms surging prices may be starting to ease, spiralling energy costs in the UK mean it could take longer to get over the peak of...
12 August 2022
Billions wiped off the value of GSK, Haleon & Sanofi, Flutter shares jump as customers keep betting and markets enjoy that Friday feeling“Many people consider healthcare companies to be saviours of the world, with their products helping to ease the pain of countless individuals. What’s often forgotten is when something goes wrong with one of their products, the fallout can be catastrophic,” says Danni Hewson, Financial Analyst at AJ Bell.
“Fears of a multi-billion-dollar lawsuit...
11 August 2022
UK stocks lag Europe & US, Disney subscriber numbers surpass Netflix, Entain expands again and Haleon continues to fall“The pleasant surprise on inflation figures across the pond gave US stocks a welcome lift and this positive sentiment extended to Europe on Thursday, except the UK,” says Danni Hewson, Financial Analyst at AJ Bell.
“The FTSE 100 was flat at the market open, with dollar weakness weighing on the large number of UK stocks which earn revenue in that...
10 August 2022
Tesla shareholders left in a spin, Deliveroo beats estimates, TUI remains resolute and Admiral sees profits drop“ Tesla shareholders may well be seething at Elon Musk’s latest share sale, no doubt arguing they didn’t sign up to such erratic behaviour. To be fair, they have every right to be furious,” says Danni Hewson, Financial Analyst at AJ Bell.
“Musk may argue it is better to have the readies at hand in case he needs to cough up for Twitter.
“If he...
9 August 2022
FTSE 100 flat as Abrdn and IWG see shares fall, while markets anticipate drop in US inflation figure“It was a muted session for European equities on Tuesday morning, with the FTSE 100 flat and the Dax slipping 0.4%,” says Danni Hewson, Financial Analyst at AJ Bell.
“Oil holding firm around $96 per barrel helped to lift shares in Shell and BP, while HSBC and AstraZeneca stock was also in demand. Alas, these gains were offset by a setback at asset...
8 August 2022
FTSE summer rally continues, Next eyes Joules stake, and BHP's offer for OZ Minerals marks return to big acquisitions“The summer is supposed to be a quiet time for markets as many people are sitting on the beach, rather than glued to a screen trading stocks and shares. So far, this summer is proving to be a decent session, and one that will provide a nice surprise when people get back to their desks after a bit of sun, sand and sea,” says Danni Hewson, AJ Bell...
5 August 2022
FTSE 100 lower, house price pressure looms, WPP down despite solid numbers, and Pets at Home enjoys resilient demand“After yesterday’s shocking assessment of the UK economy from the Bank of England, the FTSE 100 was down modestly this morning,” says AJ Bell Investment Director Russ Mould.
“Actually the resulting weakness in the pound is not a bad thing for the index as it flatters the relative value of its dominant overseas earnings.
“That is balanced out this...
4 August 2022
BP's bumper profits and a buyback bonanza for the FTSE 100The debate over the rights and wrongs of BP’s bumper profits will run and run but, from the narrow perspective of investment, the oil major’s latest share buyback means FTSE 100 members are on track to return record amounts of cash to their shareholders in 2022.
A forecast aggregate dividend pay-out of £85 billion almost matches 2018’s peak of £85...
4 August 2022
A strong Q2 for US earnings but what does the future hold?“The US economy may technically be in recession, after two straight quarterly drops in GDP, but corporate America seems to be coping well enough,” says AJ Bell Investment Director Russ Mould.
“According to research from S&P Global, 278 members of the S&P 500 index have already reported earnings. Of those, 209 have beaten earnings forecasts and...
4 August 2022
FTSE 100 dips ahead of rates decision, Next enjoys summer weather boost, and Rolls-Royce sputters“The FTSE 100 dipped ahead of a Bank of England meeting where it is expected to introduce a 50 basis point hike in rates,” says AJ Bell Investment Director Russ Mould.
“Attention is likely to be focused on the surrounding commentary and any signals it provides about inflation expectations and the trajectory of interest rates for the remainder of...
3 August 2022
HSBC ends reporting season for Big Five FTSE 100 banks in styleThe combination of rising interest rates - and therefore improving net interest margins – alongside cost control and low expectations means that HSBC’s second-quarter results are pleasing investors and adding a final polish on reporting season from the Big Five FTSE 100 banks.
Profits and cash returns have either met or beaten forecasts, and only...
3 August 2022
Taiwan trip tension rattles markets and Taylor Wimpey's first half results impress“Investors already have more than enough on their plate. Now they find themselves having to make room for one more worry, as tensions build between the US and China,” says AJ Bell Investment Director Russ Mould.
“After several trade spats during the Trump administration, things had largely calmed down under his successor. But Nancy Pelosi’s visit...
2 August 2022
Greggs delivers the goods, BP records bumper profits and FTSE in 'consolidation mode'“The FTSE 100 was in consolidation mode on Tuesday morning, trading broadly flat but avoiding the falls seen in Asia overnight,” says AJ Bell Investment Director Russ Mould.
“As if the market needed something new to worry about, there is now renewed concern about relations between the USA and China as Nancy Pelosi is primed for a visit to Taiwan....
1 August 2022
Strong results help FTSE move higher, HSBC resists break up call & pledges quarterly dividend and publisher Pearson profits“The FTSE 100 started the week higher following some relatively positive corporate updates, notably from index heavyweight HSBC,” says AJ Bell Investment Director Russ Mould.
“Education publishing specialist Pearson was among the winners on Monday as it stuck with full year guidance and reported a significant increase in profit following stronger...
29 July 2022
BA owner makes first profit since pandemic, and Apple and Amazon beat expectations“The FTSE 100 continued to grind upwards on Friday morning, putting it on course to end a pivotal week in positive territory,” says AJ Bell investment director Russ Mould.
“With many of the big US names reporting this week and the Federal Reserve delivering its latest decision on rates this always felt like a make or break week and fragile markets...
28 July 2022
Unilever's brand power helps it push through hefty price rises to consumersCompanies with strong brands are often seen by investors as a good hedge against inflation, because those brands command customer loyalty and sticky customers are more likely to pay up for the products and names they cherish.
Unilever’s first-half results go a long way to supporting that theory, because profits are up despite input cost increases...
28 July 2022
Barclays suffers from US debacle, Shell sees profits soar and Fed commentary does markets a favour“On a super Thursday for corporate results the FTSE 100 made solid progress in early trading as the US Federal Reserve helped give global markets a boost overnight,” says AJ Bell Investment Director Russ Mould.
“It wasn’t so much what the Fed did, since a 75 basis point increase in rates was widely expected, as what it said in noting that some...
27 July 2022
Walmart issues profit warning as it suffers from inflation, excess stock and pressure on consumer spendingWhen one of the world’s largest retailers dishes out a profit warning, investors really need to pay attention and Monday’s trading alert from Walmart offers evidence of three trends to ponder.
And all three may prove just to be just as important on this side of the Atlantic, so anyone with shares in leading UK-based and UK-listed retailers has some...
27 July 2022
Lloyds lifts dividend and profit guidance as it beats expectations“An increase in the first-half dividend, improved profit guidance for the year and very modest loan losses and litigation costs are all giving shares in Lloyds a boost, especially as a much gloomier outlook was already priced in,” says AJ Bell Investment Director Russ Mould.
“The shares trade at a one-fifth discount to the 54.2p tangible book...
27 July 2022
FTSE nudges higher ahead of Fed decision, Lloyds & Reckitt smash expectations, and Microsoft & Apple not as bad as some feared“The FTSE 100 was higher on Wednesday morning, buoyed by some positive corporate results and news from the US overnight as Microsoft and Alphabet reported numbers which were not as bad as some may have feared,” says AJ Bell Investment Director Russ Mould.
“US stocks had fallen ahead of the tech giants’ earnings thanks to Walmart’s profit warning...
26 July 2022
FTSE up as US big hitters poised to report today, Unilever feels the Nelson Peltz effect, and Easyjet hit by travel chaos“The FTSE 100 made some modest progress on Tuesday morning as earnings reports on both sides of the Atlantic turn from a trickle to a flood,” says AJ Bell Investment Director Russ Mould.
“Some really big hitters report in the US later today, including Coca-Cola, McDonalds as well as Microsoft and Alphabet.
“These could really define an earnings...
25 July 2022
Vodafone UK price hike helps as German revenue slips and Ryanair boss blames airports for travel chaos“There was a definite summer holiday lull feel to Monday morning trading as the FTSE 100 slipped back a little following overnight losses in Asia,” says AJ Bell Investment Director Russ Mould.
“In macro-economic terms, all the big action comes mid-week as the Federal Reserve serves up its latest decision on interest rates and, a day later, we get...
22 July 2022
FTSE 100 firms on track to pay £85bn in dividends & could surpass record set in 2018The FTSE 100 is now expected to yield 4.2% in 2022, thanks to the combination of share price falls and increases in dividend forecasts. The index’s total dividend pay-out is expected to reach £85 billion in 2022 excluding special dividends, up from £78.5 billion in 2021.
It means total payments could surpass 2018’s record, although the current...
22 July 2022
JD Sports resilient despite shock retail sales numbers, Snapchat owner faces TikTok challenge amid tough advertising market and BP tops the FTSE 100 leaderboard“The FTSE 100 eked out some gains on Friday to provide hope it may finish in positive territory for the week,” says AJ Bell Investment Director Russ Mould.
“A drop in the pound as retail sales disappointed probably helped since it boosted the relative value of the overseas earnings that dominate the stock index. Stronger oil prices also helped BP...
21 July 2022
Frasers shares jump, Dunelm sales slip, Moneysupermarket beats expectations, Howdens upbeat and M&S loses CFO“A barrage of mid-cap news has whetted the appetite of investors hungry for updates on UK companies.” says Russ Mould, Investment Director at AJ Bell.
“Overall, the FTSE 100 tried its best to push ahead at the market open, but momentum was quickly lost. Miners, consumer goods, utilities and tobacco stocks dragged the market down, which is a shame...
20 July 2022
Netflix beats expectations but subscriber numbers still fall, Royal Mail paints a bleak picture, and an encouraging update from Premier Foods“Expectations were so low in the run-up to Netflix’s results that it’s no surprise to see its share price jump in after-hours trading. Yes, it is still losing subscribers. But nowhere near as many as forecast, so there has been huge relief in the market,” says Danni Hewson, Financial Analyst at AJ Bell.
“Investors like it when companies under...
19 July 2022
All eyes on Netflix amid key US earnings season, made.com shares sink as it slashes forecasts & miners struggle on China woes“Speculation that Apple may slow hiring and spending took a bite out of any market momentum overnight and set the tone for a weak start in London on a scorching Tuesday,” says AJ Bell Financial Analyst Danni Hewson.
“The current second quarter earnings season in the US was always likely to be crunch time for markets as investors looked for signs...
18 July 2022
Haleon splits from GSK, Deliveroo cuts revenue forecast & FTSE 100 climbs“There was a decent start to markets on Monday, with the FTSE 100 jumping 1.1% higher to 7,238. Leading the UK market higher were oil stocks Shell and BP, banking group HSBC and the big miners,” says Danni Hewson, Financial Analyst at AJ Bell.
“Even cryptocurrencies managed to find some new friends after letting investors down in recent months...
15 July 2022
Netflix second-quarter results“ Netflix’s shares are down 70% in 2022 and are down by more than three-quarters from their autumn 2021 highs after a stunning fall from grace for a perceived winner during the pandemic and lockdowns,” says AJ Bell Investment Director Russ Mould.
“The combination of increased competition and consumers’ cutting back on discretionary spending as...
15 July 2022
China’s GDP & mortgage protests hurt Asian stocks, plus Fevertree warns on profits as costs bite“A barrage of news concerning China has given parts of the market something new to worry about,” says Danni Hewson, Financial Analyst at AJ Bell.
“The Shanghai SSE index fell 1.6% and Hong Kong’s Hang Seng dived 2.4% after China’s second quarter GDP figure came in significantly below expectations (0.4% growth versus 1.2% forecast).
“Although...
14 July 2022
Build costs rise for Barratt Developments, Dr Martens on track, Ericsson shares dive and Playtech jilted again“As Morrissey woefully sang, ‘Stop me if you think you’ve heard this one before’. Investors are getting sick of hearing about inflation, interest rates and falling stock markets. While that tune is still playing loudly, some of the pains we’ve seen over the past year are starting to fade,” says Danni Hewson, Financial Analyst at AJ Bell.
“Commodit...
12 July 2022
Euro tumbles on Russian gas threat, FTSE dips, Anglo Pacific strikes deal with South32, Restaurant Group gets Barburrito, and Petropavlovsk files for administration“The FTSE 100 dipped at the open after weak trading in the US and Asia as investors continue to weigh the risks associated with war in Ukraine, stubborn inflationary pressures and Chinese lockdowns,” says AJ Bell Financial Analyst Danni Hewson.
“This cocktail of worries is preventing the markets from making any tangible progress. Dire retail sales...
11 July 2022
FTSE lower, markets await US inflation & China growth numbers, Wall Street earnings season in focus, and Wizz Air loses money again“After a tumultuous start to 2022 the past month or so has seen global markets largely in limbo as investors seek to make judgements about whether any sort of soft landing for the economy can be engineered while still bringing prices under control,” says AJ Bell Investment Analyst Danni Hewson.
“This week sees three catalysts which could shake...
8 July 2022
A change of Chancellor and what history tells us about their influence on marketsThe outgoing Chancellor, Rishi Sunak, may wish he’d been dealt a better hand. Brexit, covid-19 and the Russian invasion of Ukraine all meant that global events had a huge influence on the UK economy and the nation’s finances.
Given the events of recent days, it is hard to know precisely how long the latest appointment to 11 Downing Street, Nadhim...
8 July 2022
FTSE fights to sustain momentum, markets eye US banking season, JD's new chair and Vistry upbeat despite rising costs“It’s been a chaotic week for politics and a rollercoaster ride for investors as markets experienced yet more wild swings,” says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 is trying its very best to hold on to this week’s winning streak, but it looks touch and go as to whether the index will have the stamina to stay higher for the...
8 July 2022
Best and worst performing funds, shares and sectors for H1 2022The most notable thing about DIY investors’ behaviour in the last six months is their readiness to buy the market dip using tracker funds. Investors piled into passive funds focusing on the US and Global stockmarkets, areas which have seen some of the sharpest falls in 2022. Eight of the ten most popular funds bought on the AJ Bell Youinvest...
7 July 2022
How the stock market responds to a change of Prime Minister mid-termIn the end Boris Johnson should - just - outlast Theresa May’s stint as Prime Minister, but financial markets are now wondering who will come next and what policies they will bring with them.
The FTSE All-Share is up, and the pound is making minor gains against the dollar and euro as investors consider who the next PM will be and hope for greater...
7 July 2022
FTSE 100 makes gains despite political turmoil, Persimmon under pressure, Currys' sales stalling and Jet2 faces headwinds“The political situation in the UK remains highly febrile, with reports now indicating the Prime Minister is set to resign later today. Although investors will be watching closely to see who emerges as a potential successor and will be longing for some stability, the FTSE 100 is nonetheless putting on a decent show and delivered some strong gains...