18 July 2024
Russ Mould: What to expect from NatWest’s second-quarter resultsThe government continues to reduce its stake in the bank.
Shares & the stock market
17 July 2024
UK stocks fall as inflation data lowers chances of imminent rate cut, HSBC appoints new CEO, ASML riding high on AI, Adidas bounces back and Reckitt hit by tornado“UK stocks took a tumble after components of the latest inflation data lowered the chances of a near-term interest rate cut from the Bank of England,” says Dan Coatsworth, Investment Analyst at AJ Bell.
“Services inflation still looks too high for comfort. The Bank has long said it is data-driven and today’s numbers don’t look soft enough across...
16 July 2024
US markets continue their ascent, utility companies in the firing line and another activist tries to woo Match Group“Investors face a tricky situation. On one hand, the US economy is proving to be resilient, with better-than-expected retail sales in June boosting hopes for decent second-quarter GDP figures. On the other hand, a more resilient economy shows that the Fed’s current policy of keeping interest rates high isn’t destabilising the country and therefore...
16 July 2024
How did the AJ Bell funds perform in the second quarter?The second quarter of this year saw the majority of markets rise across the globe, but how did different markets perform and how did the AJ Bell funds react to those market changes? We caught up with James Flintoft, Head of Investment Solutions at AJ Bell, to discuss the outlook, key events that affected markets and how the AJ Bell funds performed...
16 July 2024
FTSE dragged down by Rio Tinto’s iron ore woes, Ocado rallies after pulling a rabbit out of the hat, B&M’s slow growth problem“The FTSE 100 took a step back after the index was dragged down by Rio Tinto and Experian,” says Dan Coatsworth, Investment Analyst at AJ Bell.
“Rio Tinto disappointed with its latest production update, with iron ore the biggest worry area after a weak quarter for output. Experian’s update was generally fine but didn’t deliver the earnings...
16 July 2024
Are UK equities ready for a return to favour?From the point of view of those investors with exposure to the UK equity market, the bad news is that aggregate consensus forecasts for the members of the FTSE 100 index fell by 4% in the first six months of this year, to £247 billion from £258 billion.
The good news is that £247 billion figure is still a record high, and it therefore helps to...
15 July 2024
Government sells more NatWest shares, Ocado slumps on broker U-turn, BlackRock falls short on revenue expectations and Marks & Spencer faces premium competition from Tesco“It looks increasingly unlikely that Labour will resurrect the previous government’s plans to hold a public sale of NatWest shares. Even since the general election was called on 22 May, the Treasury has been quietly offloading parcels of NatWest shares in either off- or on-market transactions,” says Dan Coatsworth, Investment Analyst at AJ Bell.
“...
15 July 2024
Bitcoin jumps as traders believe Trump’s chances of winning election have improved, China economy disappoints and Burberry CEO leaves“Markets were surprisingly calm given the assassination attempt on US presidential candidate Donald Trump,” says Dan Coatsworth, investment analyst at AJ Bell.
“While equities saw a small pullback in parts of the world, there was no panic on the markets as a result of the weekend of violence.
“The polls already implied Trump had a fighting...
12 July 2024
Weight of expectation for rate cuts shifts to Fed after stronger-than-expected UK growth figures and Tesla shares plunge over product delays“It’s hard to believe it has only been a week since Labour’s landslide election victory changed the UK’s political makeup. There’s been no shortage of big announcements from Number 11 but the main economic news impacting London markets is rooted in the past, with faster than anticipated economic growth in May slashing expectation of an August...
11 July 2024
US markets buoyed by inflation data, Pepsi loses fizz and Apple opens up tap-and-go in Eurozone“Investors seem to have been on the rate cut rollercoaster for an unhealthy amount of time, lurching between the highs of expectation and the lows of reassessing. But the latest set of US inflation figures suggest the first rate cut in the US could finally be nigh” says AJ Bell Head of Financial Analysis Danni Hewson.
“Expectation of a September...
11 July 2024
Pound at four-month high, water utilities in focus, Jet2 faces some turbulence, relief over Dr Martens and Hays sees profit at bottom end of guidance“The pound hit a four-month high after better-than-expected UK GDP figures. The new government has placed economic growth at the heart of its policies and it will be pleased to have inherited positive momentum with GDP,” says Russ Mould, Investment Director at AJ Bell.
“The bigger issue is whether the Bank of England will look at this data and feel...
10 July 2024
Russ Mould: What to expect from the mining sector’s next round of resultsCopper demand is heavily linked to the fortunes of the electric vehicle sector and the metal price has volatile lately.
10 July 2024
FTSE 100 higher following gains in US and Asia, Barratt Developments to build fewer homes, Direct Line succumbs to price comparison move, Travis Perkins hires industry heavyweights and record sales for Wetherspoons“The FTSE 100 regained some of the ground lost yesterday as a combination of airlines and precious metals miners helped give the market a lift,” says AJ Bell Investment Director Russ Mould.
“This followed gains in Asia and on Wall Street overnight, with Japan’s Nikkei 225 attaining a new record level.
“Testimony from Federal Reserve chair Jerome...
9 July 2024
Markets subdued despite US rate cut optimism, Dyson to slash workforce, Mulberry appoints new CEO, Aston Martin tops FTSE 250 after poaching Ferrari director, Hipgnosis investors accept Blackstone offer and Thames Water running out of time“Whilst Fed chair Jerome Powell’s comments that the US economy is no longer overheated will be welcome news for investors who are more than ready to hear the starting gun on rate cuts, that fizzy expectation couldn’t lift UK markets today,” says Danni Hewson, Head of Financial Analysis at AJ Bell.
“News that British appliance manufacturer Dyson is...
9 July 2024
FTSE gains limited by weak BP update, Indivior shares at three-year low on profit warning, PageGroup hit by deteriorating jobs market and Vistry sees cost pressures ease“The FTSE 100 ticked higher on Tuesday despite a weak update from index heavyweight BP acting as a drag on the market,” says AJ Bell Investment Director Russ Mould.
“Later today, Federal Reserve chair Jerome Powell is due to testify before the US Senate with investors alive for clues on plans for monetary policy. Recent data points have implied...
8 July 2024
US equities look to second-quarter earnings for next leg up“The second-quarter results season is upon us and investors will be looking for upbeat commentary, positive earnings surprises and optimistic outlooks for the second half of the year to help the headline American stock market indices set new all-time highs,” says AJ Bell investment director Russ Mould.
“Such good news may be needed, however...
8 July 2024
Markets volatile amid political uncertainty in France and US, Skydance to buy Paramount in major Hollywood deal, Carlsberg to buy Britvic and Marston’s brewing JV, Ocado scores in Japan“So much for the summer lull. Just as you thought the UK going to the polls was enough drama, political twists and turns in France and the US have put investors in a spin as they try to work out the lay of the land in those geographies,” says Russ Mould, Investment Director at AJ Bell.
“All the major European indices apart from Germany’s DAX were...
5 July 2024
Markets react to the UK's general election result“The general election has resulted in a significant political shift for the UK and investors appear to welcome the changing of the guard, judging by how the more domestically focused FTSE 250 got off to a very strong start,” says Dan Coatsworth, Investment Analyst at AJ Bell.
“There is always a sense of nervousness ahead of markets opening the day...
5 July 2024
How the market reaction to a new prime minister compares to historyThe UK stock market barely moved the last time the country switched from a Conservative to Labour government but the opposite happened when Keir Starmer’s party was declared victorious in the 2024 general election.
In recent months, markets had taken the prospect of a Labour government with equanimity, given the party’s manifesto promises not to...
5 July 2024
Five pensions and savings priorities for the new chancellorWith a stonking Parliamentary majority, new prime minister Keir Starmer has a serious mandate to pursue the reforms set out in Labour’s manifesto. The party has been crystal clear throughout the campaign it will prioritise economic growth and ‘wealth creation’ in government, although details of exactly how these will be achieved or what it might...
4 July 2024
Norwegian Air profit warning drags on EasyJet, Novo Nordisk hit as study links weight loss drug to eye condition“Whilst there’s been no sign of the record-breaking performance enjoyed over in the US and Asia over the past couple of days, London markets have taken election day in their stride.” says Danni Hewson, Head of Financial Analysis at AJ Bell.
“Sterling hit a three year high against the dollar as expectations that the Bank of England will act sooner...
4 July 2024
FTSE 100 and Asian markets higher as weak US data prompts rate cut speculation, activist Cevian takes stake in Smith & Nephew“The FTSE 100 made a strong start on election day but its gains had far more to do with events on the other side of the Atlantic,” says AJ Bell Investment Director Russ Mould.
“Broad-based gains across the index followed weak jobs data from the US and a soft reading from the country’s services sector.
“This was taken as an indication the Federal...
3 July 2024
Markets steady as UK election campaign nears end, Topps Tiles sees shares dip, GSK strikes vaccine deal with CureVac“And just like that, the election campaign that started on a rainy May afternoon, whimpers to an end.” says Danni Hewson, Head of Financial Analysis at AJ Bell.
“London markets have been left un-shaken and un-stirred, largely because the polls haven’t deviated from their initial indications.
“Investors like stability, they like clarity, and by...
3 July 2024
Takeovers and buybacks supplement flatlining dividend forecastsAfter flirting with a new all-time high in May, the FTSE 100 is now paddling sideways, as it awaits both the result of July’s general election and, perhaps more importantly, the Bank of England’s first interest rate cut. Surprise cuts from Sweden and Switzerland, and an early move from the European Central Bank, are helping to set the tone but...
3 July 2024
Russ Mould: Why recruitment consultants are having a tough timeDifficult trading conditions could lead to lower dividends and share buybacks in the sector.
