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...
15 March 2022
Asian markets flash red again, miners slump and Ocado wins another technology deal“Asian markets were troubled for the second day in a row as investors weighed up the potential hit to corporate earnings and economic growth from new Covid lockdowns in China, particularly in the electronics manufacturing sector where disruption to production could lead to another supply chain crisis,” says Russ Mould, Investment Director at AJ...
14 March 2022
Chinese stocks sell off on new Covid lockdown and Rio Tinto bids for Mongolian project partner“China is at the centre of a new storm which threatens its economic growth and credibility with the Western world,” says Russ Mould, Investment Director at AJ Bell.
“Two forces have served to shake its markets, leading to a 5% slump in Hong Kong’s Hang Seng index and a 2.6% decline in the Shanghai SSE Composite index.
“First is renewed lockdown...
11 March 2022
FTSE ends the week on a brighter note, Ocado wins again, housebuilders in demand, and Cineworld jumps ahead of next week’s results“After a mid-week rally for stocks, Thursday’s session saw a bucket of cold water poured over markets in Europe, Asia and the US,” says Russ Mould, Investment Director at AJ Bell.
“The war rumbled on, new inflation figures gave a stark reminder how the cost of living is going up fast, and the European Central Bank implied that eurozone interest...
10 March 2022
FTSE drops after wild swings in oil prices, while Boohoo rallies but still faces big challenges“Wild swings in oil overnight reflect the febrile nature of markets right now and also just how little visibility investors have,” says AJ Bell Investment Director Russ Mould.
“The 17% drop in crude prices, after UAE signalled a willingness to increase production, would certainly help to reduce inflationary pressures which had intensified since...
9 March 2022
Most popular ISA investments of 2022 so farISA investors are keeping the faith with Fundsmith Equity and Scottish Mortgage, despite some lower performance in the first two months of this year. Scottish Mortgage fell by 25% and Fundsmith Equity fell by 13%, which compares to a 7% fall in the MSCI World Index over January and February. All active approaches will go through periods of...
9 March 2022
European markets rebound as investors fish for bargains, and slimmed down Prudential impresses“Markets across Europe saw strong gains on Wednesday following decisions by the UK, US and EU to ban or curb Russian oil and gas imports, thereby putting further financial pressure on Russia,” says Russ Mould, Investment Director at AJ Bell.
“After a strong run for commodity producers on the market, names like Rio Tinto and Glencore slipped back...
8 March 2022
Stagflation fears stalk markets and rising costs to take a bite out of Greggs’ expected“After a Lazarus-like turnaround yesterday the FTSE 100 was back under pressure on Tuesday as the war in Ukraine grinds on and approaches the end of its second week,” says AJ Bell Investment Director Russ Mould.
“It’s hard to believe that just a fortnight ago a full Russian invasion was considered the worst end of a range of scenarios, oil was...
7 March 2022
Commodity prices soar, more directors leave the boards of London-listed Russian companies, and manufacturing M&A deal is off“After a week of businesses around the world cutting ties with Russia in protest at its invasion of Ukraine, the market is now taking a serious look at what would happen if no-one bought the country’s commodities,” says Russ Mould, Investment Director at AJ Bell.
“So far there have been no country-level sanctions on Russian commodity products...
4 March 2022
Taking stock of events as markets continue to fall“With the invasion of Ukraine by Russia now into its second week, stock markets continue to battle the threat of even higher inflation and a potential economic slowdown,” says Russ Mould, investment director at AJ Bell.
“Since the invasion began on 24 February, Germany’s DAX index has fallen by 8.3%, Hong Kong’s Hang Seng index has dropped by 7.4%...
3 March 2022
Croda share price crumbles even as earnings and dividend grow“The pricing power conferred by Croda’s business model and its strong position in its chosen markets shines through the full-year numbers, as sales, profits, profit margins and the dividend are all higher. However, the share prices just does not seem interested,” says AJ Bell Investment Director Russ Mould.
“The latest slide means Croda shares are...
3 March 2022
FTSE lower despite resources strength as inflationary impact of war in Ukraine becomes clear, ITV shares slump as it reveals new streaming service, and Melrose holds back on capital return amid conflict“Not even continuing strength in the oil and gas market and the resulting upswing in BP and Shell shares could save the FTSE 100 from a fall on Thursday,” says AJ Bell Investment Director Russ Mould.
“Investor nervousness is perfectly understandable as we won’t know the full impact of the conflict sparked by Russia’s invasion of Ukraine for some...
2 March 2022
Oil hits $110, BP and Shell lift FTSE 100, Polymetal rebounds after ’going concern’ analysis, and MusicMagpie hit by margin pressures“The FTSE 100 made its latest attempt at a rebound on Wednesday despite the ongoing conflict in Ukraine,” says AJ Bell Investment Director Russ Mould.
“Index heavyweights BP and Shell were markedly higher as oil prices moved to eight-year highs above $110 per barrel.
“The latest surge in crude came despite the International Energy Agency...
2 March 2022
Stand out funds for this year’s ISA allowanceThe 5 April deadline for using this year’s £20,000 ISA allowance is rapidly approaching and with Cash ISA rates remaining low, many investors will be turning to the stock market to try and ensure their savings can outpace rampant inflation. Individuals will be looking for fund options that suit the amount of risk they want to take in their...
1 March 2022
Eerie calm in markets despite war in Ukraine, and Travis Perkins could find life harder“The fairly calm mood in the markets seems at odds with the escalating conflict in the Ukraine as the FTSE 100 ekes out modest gains on Tuesday following progress in Asian markets,” says AJ Bell Investment Director Russ Mould.
“Investors, like almost everyone else, have little insight into what happens next in Ukraine or how Russia might respond...
28 February 2022
BP to offload Rosneft stake, Russian companies sink on London market, Associated British Foods contends with margin pressures“In a move that feels seismic but at the same time completely unsurprising, BP has announced plans to offload its stake in Russian oil company Rosneft,” says Russ Mould, Investment Director at AJ Bell.
“Remaining invested in Rosneft could almost be literally construed as fuelling the Russian war effort and that would not have been a sustainable...
25 February 2022
FTSE 100 makes gains despite Ukrainian conflict, International Consolidated Airlines continues to lose money, and Rightmove to face a downturn test“Despite war continuing to rage in Ukraine the FTSE 100 managed decent gains on Friday as investors make slightly queasy calculations about the extent to which the economic and market impact of Russia’s invasion will be contained,” says AJ Bell Investment Director Russ Mould.
“The index took its cue from a dramatic reversal in the US overnight...
24 February 2022
How to inflation-proof your ISAInflation is now forecast to peak at over 7% in April, which naturally has many people worried about how that will affect their savings and investments, and as we head towards the end of the tax year, that concern will no doubt affect how savers allocate their ISA allowance. Current high rates of inflation mostly reflect price rises that have...
24 February 2022
Cash ISAs hit with record outflows as interest rates, urgency, appeal and spare cash dwindleCash savers pulled more than £7bn from bank and building society ISAs in the last six months of 2021 – marking the biggest outflows from ISAs since they were launched in 1999. Poor interest rates, the cost of living crunch and the dwindling appeal of cash ISAs have all played into these outflows.
ISAs generally see outflows in the second half of...
24 February 2022
Market reaction to Russia invading Ukraine, and Rolls-Royce slumps on weak results and Warren East departure“Markets across Europe and Asia dived on confirmation that Russia had invaded Ukraine. A 2.6% decline in the FTSE 100 paled into comparison to other markets including a 3.5% drop in Germany’s DAX and a 3.2% slump in Hong Kong’s Hang Seng,” says Russ Mould, Investment Director at AJ Bell.
“That is partially down to the UK market having a large...
24 February 2022
Antofagasta faces big cost increases in 2022 as copper price holds firm“Copper carries the nickname ‘Dr Copper’ because the malleable and ductile industrial metal is used so widely in so many industries that it is seen as a good guide to global economic health. In some ways investors should therefore be pleased to see copper trading near $10,000 a tonne, although the metal’s recent price strength could also be down to...
23 February 2022
FTSE higher on hopes for de-escalation in Ukraine, Rio Tinto declares bumper dividend, and Barclays beats expectations“The FTSE 100 managed a move higher on Wednesday despite the simmering tensions in Ukraine,” says AJ Bell Investment Director Russ Mould.
“The US seems to have ruled out any talks with the Russians until they pull back from the separatist regions in the Donbas region they occupied yesterday so the ball now appears to be in Vladimir Putin’s court....