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...
6 July 2022
Pound slides after Sunak and Javid quit, oil rebounds, AO seeks more cash and Trainline soars“In theory a weaker pound is good for the large number of companies on the UK stock market that do business in foreign currencies, as their earnings benefit when translated back into sterling. Yet the recent slump in the oil price is bad news for some of the biggest names on the UK market, principally BP and Shell,” says AJ Bell Investment Director...
5 July 2022
Aussie rate hike, Saga looks to steady the ship and Sainsbury’s gets a new chief bean counter“Unable to take a lead from Wall Street, which was closed yesterday for the Independence Day holiday, London is off to a quiet start after Asian markets took a one-half percentage point from the Reserve Bank of Australia in their stride,” says AJ Bell Investment Director Russ Mould.
“The Aussie rate hike followed a similar increase by the Bank of...
4 July 2022
Oil bounce lifts FTSE, Hipgnosis enjoys royalty success and Pets at Home hit by broker downgrade“A small bounce back in the oil price was enough to give BP and Shell a lift and provide welcome support to the FTSE 100 index, up 1.1% to 7,245,” says Russ Mould, Investment Director at AJ Bell.
“Oil supplies have been watched closely in recent weeks amid concerns about a slowdown in the global economy.
“Fundamentally supplies continue to be...
1 July 2022
Millions hit by stock market weakness and ITV in the picture as TV advertising rules under review“We already knew this year’s stock market performance had been miserable but when we see headlines flashing about the worst first-half for US equities since 1970 and the worst month for the FTSE 100 since the pandemic-induced market crash in 2020, the brutal severity of the losses really hits home,” says Russ Mould, Investment Director at AJ Bell....
30 June 2022
What will the bouncy buck break next?“Whether it is because the US Federal Reserve is raising interest rates faster than other Western monetary authorities, or because investors are seeking a haven in the form of the globe’s reserve currency, the dollar is trading at its highest levels since late 2002,” says AJ Bell Investment Director Russ Mould.
“Oddly, the US stock market rarely...
30 June 2022
European stocks dive, Aston Martin’s funding fears, Uniper’s big warning and Royal Mail faces strike disruption“Stock markets were in a terrible mood across Europe, with the FTSE 100 down 1.7%, the CAC 40 dropping by 2.3% and the Dax falling 2.5%. There really is a lack of good news for investors to cling onto, and the near-term outlook looks bleak which is shattering confidence,” says Russ Mould, Investment Director at AJ Bell.
“The list of risers on the...
29 June 2022
Utilities digest price control proposals, falling sales for B&M and Nio under fire“Utility companies are not exactly jumping with joy at Ofgem’s new electricity distribution price control proposals, with SSE calling them ‘tough and stretching’,” says Russ Mould, Investment Director at AJ Bell.
“Energy providers would argue they are under pressure to invest heavily to improve infrastructure, make sure the supply network is...
28 June 2022
Miners storm ahead and give a lift to the FTSE 100“Boom! Periods when the FTSE 100 rises in the region of 1% in a day should be celebrated given how this year has been so gloomy for investors. Today, the fireworks are most definitely lighting up the sky and the UK market is regaining its mojo,” says Russ Mould, Investment Director at AJ Bell.
“Miners revved their engines yesterday following the...
27 June 2022
Markets move higher, miners in vogue, new bid for CareTech“A good start to the week for European equities bodes well for investors hoping for their portfolios to be repaired after a damaging start to the year,” says Russ Mould, Investment Director at AJ Bell.
“Germany’s DAX index jumped 1.6% thanks to strength in consumer-facing companies, miners, industrial groups and healthcare names. The top performer...
24 June 2022
Sifting through the market carnage, Barclays goes big on mortgages, and Lamprell in rescue talks“A 0.5% rise in the FTSE 100 to 7,056 is a step in the right direction and rounds off what’s been yet another volatile week on the markets,” says Russ Mould, Investment Director at AJ Bell.
“As we approach the halfway point for 2022, investors continue to cross their fingers that markets will have a better second-half than the first six months of...
23 June 2022
Markets flashing red, Polymetal reassures, Tandem has an inventory problem and slowing growth at Naked Wines“Red was the dominant colour on the markets across Asia and Europe, following a similar showing on Wall Street last night. Investors just cannot find a good enough reason to shift their bad mood and so the selling continues,” says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 fell nearly 1%, thanks mainly to weakness in commodity...
22 June 2022
Berkeley shares brush aside latest cash bonanza“An increase to profits forecasts for the next three years and strong hints of even greater cash returns to shareholders are failing to move shares in high-end housebuilder Berkeley,” says AJ Bell Investment Director Russ Mould. “Investors are focusing instead on rising interest rates, falling consumer confidence and fears of a recession...
22 June 2022
Inflation dominates market sentiment, big cash outflow at Berkeley and JD Sports’ record results overshadowed by gloomier outlook“There may have been a bit of relief this morning that UK consumer price inflation, while still at decades-long highs, was nonetheless bang in line with expectations,” says AJ Bell Investment Director Russ Mould.
“However, this relief will have rapidly dissipated as it dawned that retail prices are now experiencing double-digit increases and...
21 June 2022
Ocado gets a cash injection, EasyJet goes plane shopping, and bullish results from DS Smith, Gear4Music and Telecom Plus“Despite the company still searching for sustainable profit, investors have been quick to back Ocado’s latest cash call. A share placing at 795p is a near-10% discount to last night’s closing price and 62% below the level at which the stock traded last September,” says Russ Mould, Investment Director at AJ Bell.
“Ocado remains a jam tomorrow story...
20 June 2022
How Brexit vote has shaped markets six years onIt is almost six years since the UK’s Brexit vote on 23 June 2016. As the Government prepares to scrap its own Northern Ireland protocol, GDP growth figures totter and energy and food security become hot topics, investors and savers are still trying to pick through the noise to work out whether they are better off or not.
The pandemic, Russia’s...
20 June 2022
FTSE stabilises, EasyJet gives more clarity to travellers, Euromoney takeover approach, and Primark trials click and collect Markets / Easyjet / Euromoney“Following last week’s brutal session for stocks globally, a 0.2% rise in the FTSE 100 is a good enough reason to be more optimistic about the equities market. Stability often comes before recovery and markets being more composed would suggest investors are no longer panicking,” says Russ Mould, Investment Director at...
17 June 2022
Tesco drives a hard bargain while Asos and Boohoo bounce back as investors await end to chaotic five days“The sun is shining bright, the weekend is here, yet all investors can think about is medicine to calm the motion sickness after one of the most chaotic five days for stocks and shares in a long time,” says Russ Mould, Investment Director at AJ Bell.
“Rising inflation, rising interest rates and a rising chance of a recession have all served to...
16 June 2022
How UK shares have fared during rate hike cycles as Thursday's BoE decision awaitsThe Bank of England may be moving more slowly than the US Federal Reserve when it comes to raising interest rates, but the UK’s central bank is still expected to raise the cost of borrowing for the fifth time when it meets on Thursday,
There have been eleven previous upcycles for UK interest rates since the inception of the FTSE All-Share index in...
16 June 2022
US equity bear markets: how long do they last?“There is an old market saying that, ‘first they come for the lieutenants and then they come for the generals,’ and this is exactly what we are seeing in US equities right now,” says AJ Bell Investment Director Russ Mould.
“The more speculative small-cap and earlier-stage indices of the Russell 2000 and NASDAQ peaked and entered bear market...
16 June 2022
Fed decision sees sigh of relief from markets, ASOS and Boohoo stuck in the gutter and 'nice try' Halfords“The initial market reaction to the largest rate hike by the US Federal Reserve in nearly 30 years was a sigh of relief,” says AJ Bell Investment Director Russ Mould.
“After last week’s US inflation shock the market had steeled itself for a big rise. Although the extent of the hike was so widely predicted ahead of time that you could be forgiven...
15 June 2022
Investors await Fed decision, Possible FTSE return for ARM, Premier Inn owner invests and WH Smith's customers see through the chaos“The FTSE 100 made a positive start to what could be a pivotal day in determining the next move for global markets,” says AJ Bell Investment Director Russ Mould.
“Investors seem to have anticipated the US Federal Reserve will deliver a 0.75 percentage point increase in rates tonight so the focus is likely to be on whether it goes even further...
14 June 2022
S&P 500 in bear market, Fed fears, ITV’s clever deal, housebuilder sector shines and Games Workshop still a winner“The S&P 500 is now in a bear market based on its year-to-date losses of 20%,” says Russ Mould, Investment Director at AJ Bell.
‘The US stock market has generated a lot of wealth for investors over the past decade, but this year has been a bucket of iced water – a shock to the system, leaving people cold, soggy and miserable.
“Unfortunately...
13 June 2022
Sterling slide boosts exporters, US inflation casts shadow over markets and Fresnillo shines as investors look for safe havens“Once again in 2022 the FTSE 100 is doing a smidge better than other global markets but, before UK investors get too excited, a big slide in sterling is a significant contributing factor to the outperformance,” says AJ Bell Investment Director Russ Mould.
“The mood out there is pretty grim, with the relief rally seen in late May starting to feel...
10 June 2022
UK banks pass key test, ProCook pared back with shares down 67% since IPO and Shanghai lockdown hurts commodity producers“The UK’s eight biggest banks have all passed a Bank of England test that show they could fail without hurting taxpayers or customers, although shareholders would be first in line to bear the costs,” says Russ Mould, Investment Director at AJ Bell.
“With a gloomy near-term economic outlook, the resolvability test will provide some relief that the...
10 June 2022
Inventory woes as Target misses again, highlighting risk to US profit forecastsA second profit warning in three weeks from US retailer Target would have been no surprise to anyone who could read a balance sheet, because the firm’s inventories were growing so much faster than its sales.
Unless customer purchases picked up speed – a risky bet, given surging fuel, food and energy costs – Target was in danger of having to...
8 June 2022
Zara owner Inditex impresses, Wizz Air sales soar, and Melrose boosted by buyback“Despite a strong showing on Wall Street yesterday, the FTSE 100 was heading nowhere fast on Wednesday,” says AJ Bell Investment Director Russ Mould.
“The UK market appears to have stalled, just as many rail travellers will if the nationwide strike planned for later this month goes ahead.
“Investors are nervously eyeing US inflation figures due...
8 June 2022
Why oil shares are shrugging off both OPEC and the windfall tax“A mild profit warning from Microsoft and reports about job cuts at Tesla will hardly be welcome headlines for investors in growth stocks as they return from the long holiday weekend, whereas those who own a lot of oil shares may be pleasantly surprised to see crude prices staying firm despite OPEC’s promises to increase output,” says AJ Bell...
7 June 2022
FTSE shrugs off political machinations as retail sales struggle, JD faces more regulatory trouble, UK stocks continue to be bid targets in the Great British Take Off“The survival of Boris Johnson in a confidence vote of Conservative MPs is met by a shrug on the markets on Tuesday,” says AJ Bell Investment Director Russ Mould.
“Sterling was stable, the FTSE 100 was broadly unchanged and, while political turmoil might eventually start to spook investors, for now the focus remains firmly on inflation.
“At the...
6 June 2022
FTSE gets post-Jubilee bounce, ECB and US inflation in focus and Eve Sleep up for sale“Many of us might be nursing a bit of a hangover but the FTSE 100 got a post-Jubilee bounce on Monday morning,” says AJ Bell Investment Director Russ Mould.
“Appropriately following a platinum-themed celebration, the move higher was powered by the mining sector as investors look for a rebound in demand for metals now China is relaxing its Covid...
1 June 2022
FTSE up ahead of Jubilee weekend, big step up in profit at Dr Martens, Ashley swoops for Missguided, Tullow and Capricorn to merge“Weak trading in the US may have seen the FTSE 100’s advance stall on Tuesday but the index was doing its best to eke out gains ahead of the Royal Jubilee Bank Holiday on Wednesday morning,” says AJ Bell Investment Director Russ Mould.
“By the time investors have returned after the festivities they could be facing a big hangover depending on the...
31 May 2022
FTSE slightly higher, Unilever shares surge as Peltz gets board seat, B&M hit by rising prices“The FTSE 100 just about kept up its run of recent gains in early trading as Russia turns off gas to the Netherlands after it refused to pay in roubles for imports and the EU banned most Russian oil,” says AJ Bell Investment Director Russ Mould.
“As we head into summer Russia has less leverage with its oil and gas supplies but the Netherland’s...
30 May 2022
FTSE builds on recent gains, oil hits $120 as Shanghai reopens, S4’s strong first quarter, housebuilder Countryside attracts offer“Risk is back in business it seems. Oil prices hitting $120 per barrel for the first time since March as Asian stocks followed Wall Street’s strong lead from Friday,” says AJ Bell Investment Director Russ Mould.
“A reopening of key economic hubs in China and suggestions the US Federal Reserve might slow the pace of interest rate hikes are helping...
27 May 2022
FTSE fails to join market rebound“Having bucked the negative market trend this year with a positive performance, the FTSE 100 fell on Friday as the rest of Europe rose,” says Russ Mould, Investment Director at AJ Bell.
“A 0.2% drop to 7,548 was nothing too serious yet it does hint at a change in tone for investors, who might perhaps be feeling confident enough to revisit higher...
27 May 2022
Snap share price badly bruised by Apple’s new privacy policyYou can tell a share price is in trouble when even a drop of 25% is hard to spot on the chart and Snap’s pre-market plunge is just such an example.
The self-styled camera company’s stock now trades below the March 2017 flotation price of $17 and is down by some 80% from its September 2021 peak after a profit warning for the second quarter that...
26 May 2022
FTSE flat, energy firms dip ahead of cost-of-living announcement, JD extends losses on Cowgill exit and Serco delivers positive surprise“The FTSE 100 reacted with a shrug to a £10 billion package from the UK Government to support households struggling with the cost of living,” says AJ Bell Investment Director Russ Mould.
“There were suggestions in some quarters this could add to inflationary pressures if the support is not sufficiently well targeted – it feels like governments and...
25 May 2022
So far, so bad: why (so far) this looks like a classic bear marketThis year’s swoon in share prices, let alone cryptocurrencies, may be a nasty surprise to some investors but those with longer memories could be forgiven for thinking, ‘Here we go again.’
The bear market that is threatening to chew up a lot of the past few years’ gains so far looks like so many other downturns that have gone before it. Investors...
25 May 2022
Marks & Spencer and Pets at Home show resilience while utilities stocks bounce back Marks & Spencer“There was a chance that Steve Rowe would leave Marks & Spencer on a sour note, given the pressures on household finances and how that might have hurt sales. Fortunately, the retailer has pleasantly surprised with its full-year results showing resilience which the company arguably lacked before Rowe became the boss,” says Russ Mould...
24 May 2022
Snap warning to derail US stock market, windfall tax threat for renewable energy firms and SSP back in fashion Snap / Social Media Companies“ Snap, crackle, pop, watch as shares drop in companies reliant on advertising income. A warning by Snapchat’s owner has sent ripples across the market for social media companies, triggering fears that advertising spend has peaked for now,” says Russ Mould, Investment Director at AJ Bell.
“We’ve already seen cracks in...
23 May 2022
Global markets bounce back, Kingfisher posts resilient sales and Moonpig snaps up Red Letter Days’ owner“The FTSE 100 is now within a whisker of its January 2022 starting position, meaning that anyone who owns a fund tracking this index will be smiling given how the performance is better than most other major stock markets in the world,” says Russ Mould, Investment Director at AJ Bell.
“Commodity producers have been the FTSE’s saviour and they are...
20 May 2022
UK markets stand firm, positive retail sales surprise lifts ASOS and Boohoo, and M&A juggernaut keeps trucking“Investors may feel as if they’ve been soaked by a torrential shower given the state of the markets this year. Look closer and it’s clear that the FTSE 100 is the one with the best umbrella,” says Russ Mould, Investment Director at AJ Bell.
“A nice rise on Friday gave welcome ballast to portfolios and put the UK blue-chip index a mere 1.4% down...
20 May 2022
Passive Favourite fund updates - May 2022 What is the AJ Bell Favourite funds list?The AJ Bell Favourite funds list is designed to lighten your research load. There are thousands of funds out there – we’ve narrowed the field by selecting a shortlist of funds we believe can deliver their objectives over the long term. To make the list, each fund needs to pass our robust, independent...
19 May 2022
Would-be buyers on the dip face their next test“The VIX, or ‘fear index,’ trades near 30 and CNN’s Greed and Fear index at just 12, so with near-term sentiment seemingly washed out this could be a key test of investors’ appetite for buying tech and meme stocks and cryptocurrencies on the dip, a tactic that has served them so well since the market bottom reached in the wake of the Great...
19 May 2022
US margin debt falls again as investors’ appetite for risk recedesAccording to the latest set of data from American market regulator FINRA, margin debt – the amount of money borrowed by either professional or private investors in the US – has just fallen for the seventh time in ten months. Even the pandemic could not force such a retrenchment, so perhaps this is a sign that the mood music is changing.
Meme...
19 May 2022
KKR fires up a bid for power plant play ContourGlobalPower utility ContourGlobal has hardly blown out the lights since its listing on the London Stock Exchange in November 2017 but a bid from private equity for the power utility offers a reminder of valuable lessons for investors.
First, cash flow is king. Second, investing for yield and income can bring its long-term reward to patient portfolio...
