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...