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...