Shares & the stock market

16 October 2024

ASML and Nvidia at the centre of a chip stock sell-off, inflation joy gives a lift to UK stocks and Whitbread profits decline amid UK challenges

“On a day when investors are dealing with the headache of a big sell-off in many tech stocks, the UK has come into its own and been a shining light on global markets,” says Russ Mould, Investment Director at AJ Bell.

“The FTSE 100 climbed 0.7% to 8,309 thanks to commodity producers taking centre stage, together with a healthy dose of gains from...

15 October 2024

Pair of increased takeover bids state the value case for UK equities

Frasers’ increased offer for Mulberry may well founder upon the blocking stake held by Challice but ABC Technologies seems to be winning over the board of TI Fluid Systems with its higher bid.

Both approaches suggest that trade buyers think there is value to be had in the UK equity market – a message that stock market investors still seem a bit...

15 October 2024

UK rate cut talk lifts housebuilders, banks and supermarkets, FTSE 100 hit by oil price retreat, De La Rue bounces on division sale, Nvidia at new record high and Bellway shares soar on upbeat outlook

“Domestic-focused UK stocks were in the spotlight as the latest economic data strengthens the argument for a drop in the cost of borrowing,” says Russ Mould, Investment Director at AJ Bell.

“The Bank of England is carefully engineering a soft landing as the UK economy loses momentum. A decline in the unemployment rate suggests the labour market...

14 October 2024

China rally losing steam, gambling stocks clobbered, higher bid for Mulberry and PageGroup downbeat with recruitment under pressure

“The devil is always in the detail and once again China has glossed over how it intends to accelerate economic growth,” says Russ Mould, Investment Director at AJ Bell.

“Investors were hoping Saturday’s event with China’s finance ministry would hold all the answers; instead, it was too top level to sustain the market’s optimism. While Chinese...

11 October 2024

Sainsbury’s biggest investor sells a chunk of stock, Tesla’s Cybercab fails to excite, BP hit by lower refining margins, Saga shares soar on Ageas talks and Revolution Bars changes name to hide the past

“European markets paused for thought at the end of the trading week, with the FTSE 100 flat at 8,236 as weakness in retailers, industrials and energy was offset by strength in pharmaceuticals, real estate and miners,” says Dan Coatsworth, Investment Analyst at AJ Bell.

“A lot of investors are sitting on their hands, waiting for tomorrow’s update...

10 October 2024

China shares resume rally, GSK higher after settling Zantac cases, Uniqlo reports big profit growth, Warren Buffett seen as preparing new Japanese investment spree and Tesla prepares to unveil robotaxi

“Is the renewed rally in Chinese shares a dead cat bounce or the real deal? That’s the key question investors will be asking after stocks resumed their upward path after a big pullback yesterday,” says Russ Mould, investment director at AJ Bell.

“The market is eagerly awaiting a briefing from China’s finance officials this weekend with the hope...

9 October 2024

Russ Mould: Will China’s economic stimulus give a long-lasting boost to miners?

What to expect when Rio Tinto, BHP and Antofagasta update next week.

9 October 2024

The FTSE 100 firm expected to have a total cash yield of 14% next year

Health campaigners and investors who run strict environmental, social and governance (ESG) screens may be frustrated by it, but income investors will be pleased to see shares in Imperial Brands trading near five-year highs after the company’s full-year trading update, which offers the tantalising prospect of an increased dividend and a further...

9 October 2024

Chinese equity rally fades away, US considers Google break-up, Rio digs deep for lithium takeover, Florida hurricane puts insurers in the spotlight, Marston’s toasts robust sales and Revolution Beauty’s ugly results

“The fizz seems to be coming out of the market as the Chinese rally fades away and futures prices imply a pullback when Wall Street opens later on,” says Russ Mould, Investment Director at AJ Bell.

“It’s natural to see some profit taking after such a strong rally for Chinese equities. Having shot up on hope of stronger economic activity, the proof...

8 October 2024

Housebuilders and miners drag on London markets, Shein overtakes Boohoo and Pepsi faces challenging consumer backdrop

“London markets have had a lot to contend with already this week,” says AJ Bell Head of Financial Analysis Danni Hewson.

“They’re dealing with disappointment that China’s fiscal stimulus potion might not have got the magic quite right, which has taken the shine off miners and luxury goods makers like Glencore, Anglo American and Burberry.

“Then...

8 October 2024

Minimal growth for FTSE 100 dividends, but share buybacks save the day

Any investor who sold in May, went away, and came back on St Leger day did not miss much, but they did not accrue any great benefit either, even allowing for August’s brief stock market squall. The FTSE 100 has broadly gone sideways, having set a new all-time high in May, as investors have considered the implications of the general election result...

8 October 2024

Cracks appear in China rally, Vistry warns, Rémy Cointreau, Pernod Ricard and Diageo hit by anti-dumping measures, Imperial Brands pleases, Greencore upgrades guidance and Motorpoint revs up

“Beijing’s ‘whatever it takes’ economic stimulus programme continued to drive a strong rally in Chinese shares. Shanghai’s CSI 300 index jumped another 5.6% as trading resumed after a week-long holiday, with healthcare, technology and industrials leading the charge,” says Russ Mould, Investment Director at AJ Bell.

“Some might find this rally quite...

7 October 2024

Oil price continues to rise, retailers make plea to chancellor on business rates and TGI Fridays to lose jobs and branches despite rescue deal

“As US investors wait for earnings season to shift into gear it’s impossible not to focus on the rising tensions in the Middle East,” says Danni Hewson, Head of Financial Analysis at AJ Bell.

“The price of Brent Crude is now flirting with $80 a barrel which, whilst still relatively low compared to prices seen earlier this year, is an indication...

7 October 2024

Why America has the same shrinking stock market problem as the UK

Its stock market listings are down by almost half since 1996, the number of new floats is down by nearly 90% from 2021’s peak and this year’s initial public offerings have left investors sat on an average loss of 7.1%. Yes, this deadbeat stock market is… the USA.

While the UK market is regularly pilloried for its lack of new joiners and shrinking...

7 October 2024

European markets flat as US jobs data joy fades away, UK property market springs back into life, BP reported to be rowing back on oil and gas cuts, Rio Tinto moves on lithium miner

“The party on the markets triggered by last Friday’s stronger than expected US jobs data seems to have fizzled out,” says Russ Mould, Investment Director at AJ Bell.

“European equities were lacklustre at the start of the new trading week despite the latest labour figures implying the US isn’t heading towards recession.

“The FTSE 100 was flat at 8...

4 October 2024

Wetherspoons bring back dividends, Watches of Switzerland goes shopping and Spirit Airlines’ shares dive

“All eyes are on US jobs numbers later today as the data could provide an important clue as to the Federal Reserve’s next steps with interest rates,” says Russ Mould, investment director at AJ Bell.

“The consensus forecast is for 140,000 jobs to have been added during September, roughly in line with the previous month. If that proves correct, it...

3 October 2024

Russ Mould: why property companies are back in fashion

Unite’s results next week come at an interesting time for the sector.

3 October 2024

FTSE 100 dips, sterling slips as Andrew Bailey signals Bank may become ‘more aggressive’ with interest rate cuts, yen eases as new PM dampens rate hike speculation and Tesco unveils bumper dividend increase as it gains share

“The FTSE 100 dipped on Thursday morning having held up better than many of its counterparts thanks to its strong energy weighting so far this week,” says AJ Bell Investment Director Russ Mould.

“The sluggish start for the index was particularly notable because it normally gets a boost when the pound is under pressure due to its dominant overseas...

2 October 2024

Middle East tensions put oil and defence stocks in focus, AO to buy musicMagpie in bid to strengthen electronics recycling position

“The FTSE 100’s large exposure to the oil and defence sectors meant the index moved higher in response to increased tensions in the Middle East,” says Russ Mould, Investment Director at AJ Bell.

“Brent Crude oil prices jumped 2.2% to $75.19 per barrel as traders worried about potential disruptions to supply from the region. That pushed up shares...

1 October 2024

Oil price jumps, Greggs shares fall, value of UK IPO deals up on previous year and Nike set for first update since announcing new boss

“No one will overlook the human cost that will be the result of rising tensions and increased violence in the Middle East but there will also be economic ramifications if things intensify further. The price of oil has jumped 3% and on London’s blue chip index big oil giants and defence stocks like BAE Systems have been in favour today,” says Danni...

1 October 2024

FTSE 100 higher, WPP rises on Unilever relief, Greggs’ growth slows, Mulberry rejects Frasers’ takeover bid, eBay in radical UK move and US dockworker strike could feed into higher inflation

“The FTSE 100 ticked higher on Tuesday morning with oil prices remaining steady despite Israel launching a ground offensive against Hezbollah in Lebanon,” says AJ Bell investment director Russ Mould.

“Gold prices ticked higher, within sight of record highs amid the Middle East turmoil, helping to lift precious metals miners on the UK stock market.

...

30 September 2024

Starter portfolios update - 30 September 2024

We recently carried out an in-depth review of our Starter portfolios. As a result, we’ve made them both simpler and lower cost for new investors.

Let’s start with the simpler approach. Each portfolio is now spread across two types of investments: global shares and global bonds. These are large, easily traded markets that have worked well together...

30 September 2024

Rightmove rejects fourth bid, Stellantis and Aston Martin warn and JPMorgan Global Growth & Income outperforms

“The weighting of Asia-focused financial stocks and resources companies in the FTSE 100 mean its fortunes have strong ties to the Chinese economy,” says AJ Bell investment director Russ Mould.

“The continuing excitement about the impact of Beijing’s stimulus efforts helped the index to a steady start on Monday, despite the downgrade to UK GDP.

“Fur...

27 September 2024

Blockbuster week for Asian markets, BP and Shell bounce back from oil price-driven sell-off and meat eaters out in force for Cranswick

“Having been one of the most unloved parts of the investment market for several years, investors have raced to buy Chinese shares in a blockbuster week for Asian markets,” says Russ Mould, investment director at AJ Bell.

“The fact the rally hasn’t run out of steam implies a sense of FOMO – fear of missing out on the big gains in Chinese shares we...

27 September 2024

Favourite funds update - 27 September 2024

The AJ Bell Favourite funds list is designed to lighten your research load. There are thousands of funds out there – so we’ve narrowed the field by selecting a high-quality 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 selection process.

What have we...