20 January 2021
Burberry shrugs off drop in tourist trade and WH Smith builds a cash buffer“The inauguration of President-elect Joe Biden later on Wednesday will draw focus on to the big stimulus plans outlined by the incoming administration but trading in Asia overnight and Europe suggests the course of the pandemic is still creating plenty of nervousness among investors,” says AJ Bell Investment Director Russ Mould.
“The FTSE 100...
19 January 2021
Premier Foods still in a sweet spot, and AO World counts costs from Covid despite record sales“After seemingly succumbing to the January blues, the FTSE 100 is feeling a lot brighter on Tuesday chalking up solid gains as investors look ahead to comments from Treasury Secretary nominee Janet Yellen on the US stimulus plan,” says AJ Bell Investment Director Russ Mould.
“Adding to the positive mood, Asian stocks were mostly higher overnight...
18 January 2021
Do silicon chip shortages mean the global economy is really motoring again“Any industry that can point to 8% compound annual revenue growth over a span of 40 year must be doing something right and the global semiconductor business is back in focus again as car makers confront disruption to production caused by a shortage of silicon chips,” says Russ Mould, AJ Bell Investment Director.
“The semiconductor industry is...
18 January 2021
FTSE 100 sluggish on ‘Blue Monday’“The FTSE 100 was struggling to get into motion on ‘Blue Monday’ – the so-called most depressing day of the year which in 2021 has the extra kicker of a global pandemic,” says AJ Bell Investment Director Russ Mould.
“The Blue Monday concept, covering the third Monday in January, was developed by a travel company in the mid-noughties to describe a...
15 January 2021
$1.9 trillion US economic relief plan puts markets into reverse“The market has given the classic reaction to any major announcement – rally ahead of the anticipated news and fall when the facts are released,” says Russ Mould, Investment Director at AJ Bell.
“Joe Biden has now released details of his proposed $1.9 trillion stimulus plan and while positive for helping to revive the US economy, financial markets...
14 January 2021
The FTSE 100 stocks that time forgotThe last ten years have not been especially kind to the UK stock market, though with an annual total return over 5%, the FTSE 100 has at least shown a clean pair of heels to both cash and inflation. The performance of the stock market in the last decade serves to highlight the importance of both diversification and dividends to investor returns.
T...
14 January 2021
Tesco is a Christmas winner and Boohoo faces cost headwinds“The FTSE 100 made modest gains on Thursday as a measure of calm returned to stock markets after a volatile start to the New Year,” says AJ Bell Investment Director Russ Mould.
“On a busy day for corporate news, investors were continuing to look past the current difficult situation with the second wave of the coronavirus to the brighter future...
14 January 2021
Persimmon shares fail to build any momentum after trading update“ Persimmon’s shares are sagging slightly after the company’s trading update, even though there are no great surprises in their either way. The slide probably reflects investors’ concerns over the current state of the pandemic and how it could impact near-term demand, the fast-approaching expiry of the Government’s stamp duty holiday and – just as...
13 January 2021
ASOS smashes expectations, and Just Eat Takeaway focused on market share over margins“The FTSE 100 managed to stem the losses of the last two days on Wednesday morning, though it failed to make any tangible progress either, sitting just a handful of points higher early on,” says AJ Bell Investment Director Russ Mould.
“Energy stocks did a lot of the heavy lifting after oil prices hit 11-month highs on continued reductions in...
12 January 2021
FTSE slips back and Kingfisher continues to ride the DIY boom“Banks and energy stocks were the flavour of the day on Tuesday, but sadly not enough to stop the FTSE 100 from slipping 0.1% to 6,791 as pharma and consumer goods stocks weighed on the index,” says Russ Mould, Investment Director at AJ Bell.
“After an impressive start to the year, equity markets are finding it harder to push ahead this week amid...
12 January 2021
easyJet joins British Airways as it gets state-backed bailoutFew industries have been as hard hit during the pandemic as the airline business and its leading players are still scrambling for months to shore up their finances so they can come through the turbulence unscathed. easyJet’s management and shareholders will therefore be very grateful for the new, five-year £1.4 billion loan provided by a group of...
11 January 2021
JD Sports smashes expectations, and Dr Martens readies stock market flotation“After such a strong start to the year, sadly the positive momentum failed to extend into the second trading week with shares across Europe in the red,” says AJ Bell Investment Director Russ Mould.
“The FTSE 100 fell 0.4% to 6,845, with miners, energy and consumer goods companies dragging down the index.
“The US dollar regained some strength...
8 January 2021
Food still the saviour for Marks & Spencer, and Barratt Developments reveals slower sales rate“The FTSE 100 continues to race back towards 7,000, a level that hasn’t been seen since February 2020 when the market was just beginning its big Covid-driven slump. Friday saw the blue-chip index advance a further 0.2% to 6,873, with gains seen across the rest of the European markets and in Asia following a very strong showing on Wall Street last...
8 January 2021
Fund added to our Favourite funds list – TB Amati UK Smaller CompaniesWhat is the AJ Bell Favourite funds list?
The AJ Bell Favourite funds list is designed to lighten your research load. There are thousands of funds out there – so we’ve narrowed the field by selecting a high-quality shortlist of funds we believe can deliver their objectives over the long term. To make the list, each fund needs to pass our robust...
7 January 2021
Sainsbury’s toasts stellar Christmas and B&M gives New Year present to shareholders“Equity markets have not been derailed by the violence on Capitol Hill yesterday, with small gains being recorded across parts of Europe and Asia. Yesterday’s trading session in the US saw gains being pared back slightly as the drama unfolded, but the main indices still ended the day ahead of where they started,” says Russ Mould, Investment...
6 January 2021
Markets react as Democrats on verge of full control in the US and Greggs beats full year expectations“The Democrats were in striking distance of full control of the machinery of government in the US on Wednesday, upending the market’s consensus view on the likely outcome and potentially disturbing the status quo,” says AJ Bell Investment Director Russ Mould.
“This was reflected in pressure on US tech stocks and an increase in the 10-year Treasury...
5 January 2021
Stock market reaction to new lockdown measures and Morrisons sees festive sales spike“The stock market reaction to a new lockdown in England could have been a lot worse, but it is fair to say there were plenty of signs in recent days that full lockdown was coming, such as similar restrictions being announced in Scotland yesterday,” says Russ Mould, Investment Director at AJ Bell.
“Quite a few UK domestic businesses saw their...
5 January 2021
Entain declines to entertain bid from MGM ResortsEntain is pushing back on an all-stock bid from MGM Resorts and even the prospect of an approach partially funded by cash does not seem to be moving the FTSE 100 firm’s board to recommend the proposal. But money talks even more loudly in the betting industry than it does in others and it would be no surprise if the predator were to put a bigger...
4 January 2021
FTSE starts 2021 with a bang, Entain rebuffs blockbuster bid from MGM“The FTSE 100 started 2021 with a bang. Surging more than 2% higher and closing on the 6,700 mark amid M&A news and confirmation that roll-out of the AstraZeneca coronavirus vaccine will commence today,” says AJ Bell Investment Director Russ Mould.
“MGM’s blockbuster bid for gambling group Entain and plumbing firm Ferguson’s sale of its UK...
23 December 2020
World Investment Outlook 2021: Chapter two – USA PoliticsDonald Trump continues to contest November’s election result but without much success at either state or Supreme Court level. He is unlikely to go quietly into the night but December’s Electoral College vote in favour of Joe Biden, by a score of 306-232, puts the Democrat in pole position for inauguration day on 20 January 2021.
Intriguin...
23 December 2020
World Investment Outlook 2021: Chapter three – Europe PoliticsFrench diplomat Jean Monnet, one of the European Union’ founding fathers, once asserted that "Europe will be forged in crises” and 2021 could be an interesting test of that.
Even if the EU appears to have staved off a major clash with Poland and Hungary over its €1.8 trillion budget plan and €750 billion COVID recovery scheme, relations...
23 December 2020
World Investment Outlook 2021: Chapter Four – Emerging Markets PoliticsAzerbaijan and Armenia may have signed a truce with Russian peacekeepers but this was a rare example in 2020 of tempers cooling rather than fraying. The EU applied sanctions to Belarus over the sixth consecutive election victory for President Lukashenko, the US hit Turkey with sanctions after Istanbul’s $740 billion arms deal with Moscow...
23 December 2020
World Investment Outlook 2021: Chapter Five – Asia PoliticsThe Chinese Communist Party’s removal from its constitution of limits to Presidential terms back in 2018 tightened Xi Jinping’s grip on power. His drives to enforce party and public discipline on the domestic front and reassert his country’s position on the world stage have both continued at full speed. A military spat with India in the...
23 December 2020
World Investment Outlook 2021 – Chapter Six: Japan PoliticsIt was doubtless a frustrating way to go, but politics has always been that way. One short year ago, Shinzō Abe was looking forward to hosting the Tokyo Olympics in July 2020, perhaps the crowning moment of his career, having just become Japan’s longest-serving, modern-day Prime Minister (PM). The Olympics were postponed and Abe had to...
22 December 2020
European markets bounce back after Manic Monday for investors“After yesterday’s carnage on the markets with approximately 2% declines seen across Europe, investors are in a better mood as we draw closer to Christmas,” says Russ Mould, Investment Director at AJ Bell.
“Yesterday’s declines were driven by investors getting a cold shower from covid-related setbacks. Optimism had been running high and so the...