11 May 2022
Gas prices surge in Europe, TUI reports strong recovery and Compass lifts revenue guidance“Another day, another reminder of the energy crisis facing Europe as Ukraine stems the flow of Russian gas,” says AJ Bell Investment Director Russ Mould.
“Prices surged on this latest threat to supply which will concentrate European minds on the need to find alternative energy sources. In the meantime it only adds to the inflationary concerns...
10 May 2022
Dividend stocks to the rescue as European stocks avoid US slump“After yet another miserable session in the US yesterday, Europe and pockets of Asia managed to avoid the rout and push ahead on Tuesday. This is unexpected given market sentiment is weak and the VIX ‘fear’ index yesterday jumped to its second highest closing price in the past 12 months,” says Russ Mould, Investment Director at AJ Bell.
“Stocks in...
9 May 2022
FTSE 100 weighed down by US, Chinese and Russian risks, Rightmove boss steps down, and Shaftesbury and Capital & Counties in merger talks“The optimism that followed the US Federal Reserve meeting last Wednesday feels a long way off on Monday morning as the FTSE 100 dropped to its lowest levels since mid-March,” says AJ Bell Investment Director Russ Mould.
“The continuing impact of Beijing’s zero-Covid policy in China and concerns about the Fed’s next moves are helping to pile the...
6 May 2022
Why Wednesday’s post-Fed rally may have been a bear trapWhen Jack Nicholson was playing The Joker in Tim Burton’s first Batman film in 1989, he was so well paid that he reportedly told a fellow cast member after just a week’s shooting, ‘Ah well, that’s another Matisse.’ Financial markets are starting to rack up some big numbers, too, but in this case the money is flowing out, not in.
After Thursday’s...
6 May 2022
What higher interest rates have meant for US stocks“The US Federal Reserve’s determination to continue tightening monetary policy, via both higher interest rates and sterilisation of Quantitative Easing, is likely to make life more difficult for investors, if history is any guide,” says AJ Bell Investment Director Russ Mould.
“Given that benchmark 10-year US Treasury yields are still running well...
6 May 2022
Market mood changes amid heavily selling in US, while IAG and IHG still face a fragile comeback“The market mood seems to have turned on a sixpence,” says AJ Bell Investment Director Russ Mould.
“Investors had initially taken Fed chair Jay Powell’s guidance that a 0.75 percentage point increase in rates was unlikely as a reason to be positive.
“However, Wall Street seemed to change its mind overnight having had time to chew it over, and...
5 May 2022
Tough times ahead for Next and Shell profit beats expectations amid windfall tax talk“Markets have been fearing interest rate hikes for some time, so it is understandable to question why equities soared after rates went up. It’s also more confusing when you consider the Federal Reserve pushed through twice the level of rate hikes you would normally expect from a central bank meeting,” says Russ Mould, investment director at AJ Bell...
4 May 2022
FTSE lower ahead of crunch Fed meeting, Joules and Aston Martin change CEOs, everything’s going wrong for Boohoo, and Wetherspoons faces costs pressures“The FTSE 100 was lower on Wednesday as investors anticipated the latest decision on interest rates from the US Federal Reserve – where a half percentage point rise is widely expected,” says AJ Bell Investment Director Russ Mould.
“Given the quantum of the raise is almost an open secret at this stage, all the attention will focus on any guidance...
3 May 2022
BP’s numbers to boost windfall tax talk, FTSE dips after bank holiday break BP“ BP’s first quarter results will do nothing to quell talk of a windfall tax on oil and gas companies,” says AJ Bell Investment Director Russ Mould.
“The oil giant might have hoped attention would focus on an apparent $20.4 billion loss – created by impairments linked to its exit of interests in Russia – but the strongest underlying profit in a...
29 April 2022
Amazon and Apple disappoint the market, NatWest’s gloomy outlook, AstraZeneca sees waning vaccine sales, AO World delays results and Reckitt posts sales growth Amazon / Apple“The latest updates from tech giants Amazon and Apple contained enough negative material to spook investors, with shares in both stocks down in after-hours trading,” says AJ Bell Investment Director Russ Mould.
“They round off what’s been a testing week for investors in US stocks or global funds, given they are popular investments...
28 April 2022
Meta gives markets a lift, Unilever’s weak pricing power, Argos becomes a thorn in Sainsbury’s side and Barclays’ beat overshadowed by structured products hit“If you were looking for candidate to come to the tech sector’s rescue it might not have been Meta Platforms given its reputation has taken a real battering of late,” says AJ Bell Investment Director Russ Mould.
“Apparently though, expectations for the company behind Facebook, Instagram and Whatsapp were pitched at such a level that merely doing...
28 April 2022
Five questions that Amazon must answer in its first-quarter resultsAmazon’s fourth-quarter results for 2021 were weak, guidance for the first-quarter of 2022 was poor and the gambit of a stock split coupled with a $10 billion share buyback has subsequently failed to support the shares.
They are down by more than a fifth from their all-time high of last July, to technically leave them in a bear market, and in...
27 April 2022
Lloyds focuses on vulnerable customers, tech stocks slump and energy prices jump again Lloyds“ Lloyds’ first quarter update reveals a lot about the state of the UK economy. The country has been getting back on its feet, which is reflected by an increase in lending and savings deposits for Lloyds. However, the outlook is less than rosy,” says Russ Mould, Investment Director at AJ Bell.
“It’s serious when a bank talks about...
27 April 2022
What could happen to markets if Apple posts a rotten quarter?“Name changes mean that the sextet of Meta, Amazon, Apple, Alphabet, Netflix and Microsoft are no longer the FAANGM stocks but MAAANM and it’s not just the acronyms that are starting to jar. They have lost $2.1 trillion in combined market value between them since December, a drop sharp enough to leave five of the six in ‘bear market’ territory...
26 April 2022
Twitter takeover still not a done deal, HSBC falls as inflation bites, Taylor Wimpey sees strong demand, ABF to take Primark margin hit“The fact Twitter’s share price is trading below Elon Musk’s offer price shows that parts of the market remain skeptical over whether this deal will complete,” says Russ Mould, Investment Director at AJ Bell.
“The social media platform is currently trading at $51.92 despite the board agreeing to sell the company for $54.20 per share. This...
25 April 2022
FTSE 100 slumps amid Beijing lockdown talks, Anglo American takes a hit in Chile and activist investor attacks Just Eat management“The markets have fallen out of bed in a big way on Monday after a big sell-off in Asia amid fears of a Covid lockdown in Beijing,” says AJ Bell Investment Director Russ Mould.
“The prospect of further restrictions in China could lead to a poisonous mix of further inflationary pressure, as supply chains in the so-called ‘factory of the world’ get...
22 April 2022
Barclays first-quarter results: 28 April"The big US banks have, to some degree at least, set the tone for the Big Five FTSE 100 firms, with a return to taking loan loss provisions (rather than writing back 2020’s provisions in 2021), increased investment in digital services and lower levels of income from investment banking operations weighing on earnings, but with higher interest rates...
21 April 2022
Tesla outpaces quarterly expectations, miners drag on FTSE and THG becomes a bid target Tesla“While all the focus may be on its founder’s attempt to takeover Twitter, Tesla shares unsurprisingly charged up after market hours in the US yesterday as it comfortably outpaced quarterly expectations,” says Russ Mould, investment director at AJ Bell.
“The electric vehicle manufacturer saw a seriously impressive gear change in sales and...
20 April 2022
Netflix sees radical changes to business model, markets dip and Just Eat mulls Grubhub sale Netflix“Signs of trouble have been growing stronger in recent months for Netflix and now we’ve had the full warning that growth is below expectations,” says Russ Mould, investment director at AJ Bell.
“Its reaction? We’ve got the full kitchen sink. Likely pricing changes, the prospect of advertisements when you use its platform and a new strategy...
19 April 2022
Stocks muted in London while across the pond Netflix prepares to release quarterly results“There was a muted return to trading after the Easter break in London with little to excite investors and plenty of nagging worries bubbling away in the background,” says AJ Bell investment director Russ Mould.
“Energy levels may pick up through the course of the week as the quarterly results season in the US gets into full swing.
“All eyes will...
14 April 2022
FTSE 100 grounded despite strong US cues, Dunelm impresses against a tough backdrop“Despite the tailwind of a US market which flew higher amid strong numbers for Delta Airlines, the FTSE 100 was firmly grounded ahead of the Easter break, trading modestly lower on Thursday morning,” says Danni Hewson, Financial Analyst at AJ Bell.
“The top riser was British Airways owner International Consolidated Airlines which took heart from...
13 April 2022
How to navigate the ESG mazeThe performance tide has turned against ESG funds of late, as growth stocks have floundered, and oil and gas companies have profited from rising energy prices. That won’t stop money flowing into responsible investments though. There is genuine consumer demand for these products, and the investment industry has sunk a lot of marketing dollars into...
13 April 2022
Inflation news boosts miners and weighs on retailers, while Tesco’s results are overshadowed by earnings warning“The latest UK inflation figure makes for ugly reading, but it shouldn’t really be a shock to the markets. If anything, inflation could get even worse from here,” says Danni Hewson, Financial Analyst at AJ Bell.
“When investors see high inflation figures, they typically look to put money into companies that thrive in an inflationary environment...
12 April 2022
FTSE slips again, European banking names slump and ASOS is in the doldrums“Another day, another decline for key equity indices. European stocks were in the doldrums as investors fretted about inflation, politics, consumer spending and more,” says Danni Hewson, Financial Analyst at AJ Bell.
“Corporate news flow is picking up which is giving investors a reason to want to trade the markets, but mixed messages from these...
11 April 2022
Markets jump around amid election and interest rate jitters, Ascential eyes potential break-up“It’s a difficult time to be an investor given how markets stubbornly refuse to break out into a decent rally. So far this year we’ve had enough ups and downs to make anyone owning shares and bonds travel sick,” says Danni Hewson, Financial Analyst at AJ Bell.
“The new trading week got off to another mixed start, with markets initially down across...