21 August 2024
Which funds outperformed high inflation?Inflation started to rise three years ago, firing the starting gun on the cost of living crisis. In August 2021 the CPI measure of inflation jumped to 3.2%, up from 2% in July of that year, before hitting a peak of 11.1% in October 2022. It has since dropped to 2.2% at the latest reading. But which funds and sectors fared best during that high...
21 August 2024
Three years into the cost of living crisis: which investments performed best?In August 2021, the inflationary crisis began to take off with the CPI measure of inflation jumping to 3.2%, up from 2% in July of that year. Consumer price inflation then climbed all the way up to a peak of 11.1% in October 2022 before gradually, and painfully, falling back to current levels. The latest inflation figure crept up a touch to 2.2%...
21 August 2024
Russ Mould - What to expect from Nvidia's second-quarter resultsWhy it is worth paying attention to the latest results from the world's third-largest company by market capitalisation.
21 August 2024
Mining stocks tick higher on iron ore rebound, FTSE 100 stuck in the mud, breakthrough for Barratt’s takeover of Redrow“The mining sector was a rare bright spot on the FTSE 100 on Wednesday as names including Rio Tinto and Glencore pushed higher amid stronger metal prices,” says Dan Coatsworth, Investment Analyst at AJ Bell.
“Just days after iron ore prices hit their lowest level in two years, the metal staged a small recovery amid hopes that stimulus measures in...
20 August 2024
Number of people paying dividend tax doubles in three yearsThe number of people expected to pay dividend tax in the current tax year has almost doubled since 2021/22, a Freedom of Information request from AJ Bell can reveal. HMRC is set to take in just under £18 billion in this tax year alone, with nearly 3.6 million taxpayers subject to tax on dividend income.
The number of people paying dividend tax has...
20 August 2024
FTSE 100 dragged lower by oil stocks despite US gains, BT down amid rumours of Sky and CityFibre link up and Palo Alto Networks beats expectations after rival CrowdStrike’s big outage“The FTSE 100 started off Tuesday on the back foot despite gains in the US and Asia overnight as its heavy weighting towards oil stocks proved a headwind,” says AJ Bell Head of Financial Analysis Danni Hewson.
“Hopes of a ceasefire in Gaza and continuing concerns about Chinese demand combined to drive oil prices to their lowest levels since the...
19 August 2024
FTSE 100 dips ahead of Jackson Hole and Asian central bank action, Barratt and Redrow to press ahead with tie-up“The FTSE 100 started the week in sluggish fashion, starved of catalysts either from a macro-economic or corporate point of view,” says AJ Bell Investment Director Russ Mould.
“The attention in terms of central bank action will centre on Asia over the next week. Bank of Japan governor Kazuo Ueda is due to appear before the country’s parliament to...
16 August 2024
Favourite funds update - 16 August 2024The 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...
16 August 2024
FTSE 100 dips despite global gains, pound higher after raft of upbeat UK economic data and GSK gets positive Zantac ruling in Florida“The market’s short, sharp shock at the start of August is starting to feel like a distant memory as global indices claw back their losses and the VIX volatility index falls back to the sort of levels it has seen for much of the last year or so,” says AJ Bell Investment Director Russ Mould.
“Yesterday’s stronger-than-expected US retail sales and...
15 August 2024
FTSE 100 ticks higher after GDP release, Cisco Systems beats forecasts and unveils job cuts and Admiral impresses as it delivers bumper dividend increase“The FTSE 100 ticked higher on Thursday morning after decent gains in the US and Asia overnight and as UK GDP figures came in as expected,” says AJ Bell Head of Financial Analysis Danni Hewson.
“Gains in the US followed inflation figures which were a smidge lower than anticipated, solidifying expectations the Federal Reserve will cut interest rates...
14 August 2024
Russ Mould: What to expect from Antofagasta's first half resultsRuss Mould explains what latest developments in the copper price could mean for the wider economy. He also runs through what to look out for in copper miner Antofagasta's latest financial results.
14 August 2024
Just Group keeps it simple as it raises earnings guidance again“Higher interest rates might not be to everyone’s taste but a relative normalisation in the headline cost of borrowing, bond yields and returns on cash continues to benefit Just Group, as its bulk annuities business continues to gather momentum and retail annuity sales grow strongly after years in the doldrums,” says AJ Bell investment director...
14 August 2024
UK inflation comes in lower than expected as markets await US figure later today, TUI maintains guidance and Balfour Beatty optimistic as profits creep up“A lower-than-expected jump in UK inflation has boosted market expectation that the Bank of England could deliver another rate cut next month,” says AJ Bell Head of Financial Analysis Danni Hewson.
“Though what investors are really waiting to hear is whether today’s US inflation number is cool enough to push the Fed to act more aggressively, with...
13 August 2024
FTSE 100 makes steady start, unexpected drop in unemployment lifts pound, Dowlais profit and cash flow plunges and Genuit hit by weak construction market“The FTSE 100 ticked higher on Tuesday morning as the calm which returned to markets in the latter half of last week persists,” says AJ Bell Investment Director Russ Mould.
“The calmer waters partly reflect the steadier showing of the yen after interventions from the Bank of Japan. This means less pressure on the yen carry trade where traders...
12 August 2024
London markets steady, JD Sports shares down, Burger King UK serves up strong numbers, hospitality sector warns of riots impact“London markets have been steady this Monday, a vastly different story from last week’s meltdown. comments Danni Hewson, AJ Bell Head of Financial Analysis
“But the difference in fortunes between the more robust blue-chip index and the sluggish FTSE 250 hints at a degree of investor trepidation as we head deeper into a data fuelled week.
“Will UK...
12 August 2024
FTSE 100 makes steady start to the week, JD Sports hit by downgrade, India’s Bharti to buy Drahi’s stake in BT, Marshalls profits slump“After a volatile week last week investors will be relieved to see the FTSE 100 start off on Monday with steady gains,” says AJ Bell Investment Director, Russ Mould.
“A variety of companies were making progress, with only 15 names on the index in negative territory in early trading. The worst performer by a distance was JD Sports, which was victim...
9 August 2024
Why people have been taxed £1.3bn too much on their pensionsNew figures show that people have been taxed £57m too much on withdrawals from their pensions in the past three months, as the total amount of over-taxation hits almost £1.3bn.
Data from HMRC shows that in April, May and June over 16,000 reclaim forms were processed during the quarter from people who had been hit with higher tax bills than...
8 August 2024
Russ Mould: What could have caused the stock market summer stumble?Russ Mould takes a deeper look at three possible reasons for the recent stock market downturn.
8 August 2024
Persimmon sees completions at top end of guidance, Warner Bros Discover slashes valuation of cable channels and Deliveroo delivers profit and cash flow“The FTSE 100 gave back a big portion of the gains chalked up on Wednesday as global markets remain jittery after the recent sell-off,” says AJ Bell investment director Russ Mould.
“There will be concern that a positive start to trading on Wall Street on Wednesday faded fast with all eyes now turning to today’s session and whether last night was...
7 August 2024
Why the UK stock market has been less volatile than AmericaThe much-maligned UK stock market is having a less turbulent summer than America, and ultimately that comes down to two factors: valuation and relative levels of expectation.
Investors may view the fact that the headline FTSE 100 index has dropped less than the US S&P 500 as cold comfort, but one possible explanation for the FTSE 100’s greater...
7 August 2024
FTSE 100 higher with US and Asian stocks in recovery mode, Novo Nordisk hit by supply issues and competition, Glencore sticks with coal, Legal & General lifts dividend and WPP cuts guidance“The FTSE 100 took succour from a continued recovery in Asian and US stocks overnight to trade appreciably higher on Wednesday morning,” says AJ Bell Investment Director Russ Mould.
“Although with warnings that the unwinding of carry trades – seeing people borrow at low cost in one currency to achieve higher returns from investments in another –...
6 August 2024
Three reasons why markets may be creaking - and three trends to watchA market storm is emerging from a seemingly cloudless summer sky. The question now is whether this is just a tempest in a teapot, and the result of thin trading volumes as the big hitters head to the beach and leave deputies and juniors in charge, or whether it is the harbinger of a more serious – and bearish – shift in market sentiment.
Tracking...
6 August 2024
Markets recover from Monday’s rout, Domino’s lowers guidance, InterContinental Hotels posts strong second quarter and YouGov makes AI acquisition“There will be some relief this morning as the FTSE 100 and other European indices arrested the recent market rout and eked out some solid gains after stocks rebounded overnight in Asia,” says AJ Bell Investment Director Russ Mould.
“Fears about a sharp recession in the US, engendered by weak jobs data, remain and the unwinding of the yen carry...
5 August 2024
Markets fall sharply, Clarkson profits dip and John Wood shares slump as Sidara walks away“Friday’s brutal sell off has continued into the new week as investors mull the prospect that the much-touted US soft landing looks like being a whole lot bumpier than markets had hoped,” says AJ Bell Head of Financial Analysis, Danni Hewson.
“Circuit breakers have been firing on Asian markets as stocks tumbled, with investors scurrying to price...
2 August 2024
US recession fears trigger global market sell-off, Japanese stocks among the biggest losers and British Airways owner International Consolidated Airlines brings back dividends“So much for the big equity rally when interest rate cuts take centre stage,” says Russ Mould, Investment Director at AJ Bell.
“Investors thought rates cuts – which have just happened in the UK and looked poised to take place next month in the US – would energise stock markets. The opposite has happened with a bad day on Thursday and weakness...