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...
8 April 2022
FTSE 100 forecast to deliver a 5.4% total cash return in 2022The FTSE 100’s total dividend pay-out is expected to reach £81.2 billion in 2022, compared to £78.5 billion in 2021, equating to a yield of 3.9%. Total payments peaked at £85.2 billion in 2018 and 2022 is expected to get closer to that mark.
Ninety-seven FTSE 100 firms are expected to pay a dividend in 2022, against 91 in 2021 and 85 in 2020, as...
8 April 2022
Banks and commodities stocks put FTSE 100 on course for a strong end to the week as wages soar“The FTSE 100 looked set for a positive end to the week, taking its cue from a strong finish to a turbulent trading session on Wall Street overnight,” says AJ Bell investment director Russ Mould.
“Commodities firms and financial stocks, the latter boosted by expectations of faster rate hikes, helped lead the charge higher.
“Investors continue to...
7 April 2022
Gooch stumped by covid even as orders recover“It may be headquartered in Ilminster, Somerset, but Gooch & Housego has a worldwide reach and normally a profit alert from the electrical and electronic components expert would raise concerns about global growth,” says AJ Bell Investment Director Russ Mould.
“On this occasion, orders are still coming in and the problem seems to be that the AIM...
7 April 2022
Sober start for stocks as the Fed looks to get tough, and Entain's online dip won't diminish its takeover appeal“European markets started in fairly sober mood – with UK stocks no exception – unsurprising perhaps given some tough rhetoric from the US Federal Reserve on interest rates and the latest round of sanctions imposed by the West on Russia yesterday,” says AJ Bell Investment Director Russ Mould.
“Both the cure, higher interest rates, and the disease...
6 April 2022
Worries over Fed action trouble markets, and more housebuilders sign up to fire safety pledge“6 April marks the start of the new tax year and in theory eager UK investors flush with cash will be rushing to deploy their new £20,000 ISA allowance. However, early trading on Wednesday didn’t suggest a flood of money going into the markets, with the FTSE 100 flat at 7,613 and markets generally weak in Europe and Asia,” says Russ Mould...
5 April 2022
FTSE flat, Homeserve and Moonpig in the spotlight, and the market tries to guess who might buy Channel 4“After another decent showing on Wall Street, Asia tried its best to sustain the positive momentum including a 2.1% rally in Hong Kong’s Hang Seng and a 0.9% rise in China’s SSE index,” says Russ Mould, Investment Director at AJ Bell.
“Europe was mixed, including a 0.3% rise in Germany’s Dax and a flat performance from France’s Cac 40 index.
“Oil...
4 April 2022
Aviation sector in a mess as staff issues derail recovery, and FTSE 100 higher despite grim news from Ukraine“The airline industry has continued its run of bad luck, though some of its pain is self-inflicted,” says AJ Bell Investment Director Russ Mould.
“Hot on the heels of long delays at Heathrow and Manchester airports is news that EasyJet has cancelled 100 flights and British Airways owner International Consolidated Airlines also unable to operate...
1 April 2022
Chill in the air for markets ahead of important US jobs figures“With the weather having turned from blue skies to snow showers in the matter of a week, there is also a chill in the air for the markets,” says Russ Mould, Investment Director at AJ Bell.
“European markets have frozen still amid concerns about financial pressures on consumers and businesses, and growing concern about a slowdown in global economic...
31 March 2022
S&U posts another dividend increase as profits rebound“A huge drop in loan impairments, sensible lending policies and strong collections all mean that specialist finance provider S&U is making the most of an upturn in demand for both cars and property refurbishments in the UK,” says AJ Bell Investment Director Russ Mould.
“A £33 million drop in charges for bad loans underpinned a £29 million jump in...
31 March 2022
FTSE up, oil prices lower on reports Biden wants to flood the market, and Trainline shares soar on commission rate relief“It has felt a bit like the FTSE 100 was singlehandedly being kept afloat by the big oil stocks, BP and Shell, in recent weeks but Thursday’s modest move higher for the index shows it is more than a one-trick pony with both these heavyweights lower in early trading,” says AJ Bell Investment Director Russ Mould.
“BP and Shell fell thanks to a slump...
30 March 2022
Bond markets signal recession warning, contrasting fortunes for miners Polymetal and Petropavlovsk, and Team17 quantifies hit from Russia/Ukraine war“Recession is the word of the day after an important warning sign was triggered on the markets,” says Russ Mould, Investment Director at AJ Bell.
“Last night the yield on two-year US government bonds rose above that of the 10-year note, causing an inverted yield curve – something that has historically preceded a recession.
“Traditionally...
29 March 2022
FTSE 100 up on hopes for progress in Russia-Ukraine talks, AG Barr now ahead of pre-Covid earnings and Bellway lifts house price guidance“Having tripped over on Monday afternoon amid concern about China lockdowns and the conflict in Ukraine the FTSE 100 sprang back to its feet on Tuesday on hopes the latest round of peace talks between Moscow and Kyiv might yield tangible progress,” says AJ Bell Investment Director Russ Mould.
“Suggestions the Russian side are softening some of...
28 March 2022
FTSE up on Ukraine-Russia peace talks as Shanghai locks down, and Ted Baker fights off takeover interest“It almost feels like we’ve stepped back in time two years as lockdowns in China once again rock the markets,” says AJ Bell Investment Director Russ Mould.
“The two-day restrictions imposed in Shanghai are evidence that the pandemic is not yet over and inevitably, given the implications for global growth, have put oil prices under pressure.
“It...
25 March 2022
Big tech in spotlight as EU clamps down on anti-competitive actions, and Petropavlovsk could be facing a cash flow crisis“It’s going to be an interesting day on the markets when the US wakes up, given how the European Union has firmed up plans to get heavy on anti-competitive practices among giant tech firms,” says Russ Mould, Investment Director at AJ Bell.
“So far pre-market indicative prices show minimal change in the prices of Apple, Alphabet, Microsoft and Meta...
24 March 2022
What does US bond market blitz mean for stock markets (and the economy)?It was former US President Bill Clinton’s economic adviser James Carville who said that if he were reincarnated, he would like to come back as the bond market because then ‘you can intimidate everybody.’ Now that US bond yields are surging and prices are falling, stock market investors need to seriously think about whether it is time to be...
24 March 2022
Oil prices continue to rise, investors hide in defensive names, and Next downgrades guidance“Brent Crude oil at $122 per barrel is going to be a tough one for businesses to stomach as energy costs go through the roof,” says Russ Mould, Investment Director at AJ Bell.
“The cost of running factories, moving trucks and powering computers will put a squeeze on profit margins which means corporate earnings expectations may have to be reduced...
23 March 2022
FTSE up ahead of mini-Budget, oil prices continue to rise, tech stocks in vogue, and Saga and Dignity sink“The FTSE 100 has a spring in its step despite the UK inflation rate going up again, and a potential cut in the country’s economic outlook when Chancellor Rishi Sunak announces his mini-Budget at lunchtime,” says Russ Mould, Investment Director at AJ Bell.
“Headwinds for consumers and businesses linked to the rising cost of energy, raw materials...
22 March 2022
Western oil majors yet to ramp up capex despite higher crude prices“Saudi Aramco is increasing its capital investment budget for 2022 to around $45 billion, compared to analysts’ consensus expectations of around $36 billion, as it recycles higher profits into efforts to increase oil output, but its Western oil major equivalents are being so much more careful,” says AJ Bell Investment Director Russ Mould.
“Although...
22 March 2022
FTSE 100 closes on pre-invasion levels, Nike finds some air on strong trading, banks higher on Powell's rate hints“The FTSE 100 extended its recent strong run and is now not too far off the levels it reached before the Russian invasion of Ukraine and only marginally lower year-to-date,” says AJ Bell Investment Director Russ Mould.
“This doesn’t mean investors have shrugged off the first major war in mainland Europe in a generation but it reflects an index...
21 March 2022
FTSE 100 claws back most of its 2022 losses and Evergrande’s shares suspended“After bouncing back last week, the FTSE 100 is now within a whisker of clawing back all the losses incurred year to date. This resilient performance has helped to put the UK back on the map for overseas investors looking to diversify their holdings,” says Russ Mould, Investment Director at AJ Bell.
“To put its performance into context, the FTSE...
18 March 2022
Dramatic week on the markets draws to a close, private equity interest in Ted Baker and JD Wetherspoon faces costs challenge“Investors have been subjected to significant forces this week. Heightened geopolitical tension, rising interest rates in the US and UK, and China’s pledge to stabilise markets have all been on the agenda and served to shake equities,” says Russ Mould, Investment Director at AJ Bell.
“Fortunately, the week looks like it will end on a calmer note...
17 March 2022
Ferguson fails to fire up investors despite bumper earnings and more buybacks“ Ferguson’s chief executive Kevin Murphy must be wondering quite what he has to do to make investors happy, as huge jumps in first-half sales and profits, a 15% boost to the dividend and a $1 billion expansion of the company’s buyback programme is making no difference to the share price at all,” says AJ Bell Investment Director Russ Mould.
“May’s...
17 March 2022
FTSE higher after Fed rate hike, Deliveroo and Cineworld up despite big losses, Ocado hit by margin warning“The FTSE 100 eked out some gains Thursday morning after the US Federal Reserve moved to raise interest rates for the first time since 2018,” says AJ Bell Investment Director Russ Mould.
“The Fed could not really have telegraphed the move any more if all its representatives had been holding quarter point raise banners everywhere they went for the...
16 March 2022
Chinese stocks surge, markets await US interest rates, and Restaurant Group is beating its rivals“It could be a rollercoaster of a day on the markets as events in China and the US dominate the agenda,” says Russ Mould, Investment Director at AJ Bell.
“After a big sell-off in Chinese stocks on Monday and Tuesday, Beijing has stepped in with pledges of support to try and stabilise markets. This has resulted in a big rebound in the Hong Kong...