Investors turn to safe-haven assets amid escalating tensions between Russia and Ukraine, Walmart delivers another crowd-pleasing update

“It’s been a tough day for markets as investors rushed for safe-haven assets, rattled by escalating tensions between Russia and Ukraine,” says AJ Bell Head of Financial Analysis Danni Hewson.

“It’s hard to believe there have been a thousand days since this conflict began and for much of that time investors have been able to push concerns aside, but today nerves were evident. Defence stocks like BAE Systems and Rheinmetall were up, gold rallied and, though still below last week’s all-time highs, Bitcoin was also on the up.

“On both sides of the Atlantic retail has been in focus. In the UK almost 80 well-known names have added their support to a letter from the BRC warning that the cumulative impact of measures announced in the Budget will likely result in price rises and job losses.

“Retail and hospitality are both sectors which operate on pretty thin margins and employ a large number of staff, many of them part-time. The changes to National Insurance, particularly the lowering of the thresholds, coming at the same time as a hike in the national minimum wage and changes to business rate discounts will significantly affect profits.

“Consumers in the UK and US alike are inflation weary and fed up with price rises, so any cost increases passed on will do nothing to revive already stagnating consumer confidence.”

Walmart

“Walmart has played a blinder when it comes to understanding what the consumer is willing to pay. It’s delivered another crowd-pleasing set of results, having tempted in those looking to trade down and securing more of their shopping budget.

“The impact of higher prices on living standards was a key decider in the US election, with the incoming president consistently asking people how they felt about their financial situation today compared to the last time he was in office. But there is concern that one of Donald Trump’s pledges could actually have the opposite effect on disposable incomes, with Walmart’s CFO John David Rainey warning that new tariffs could force retailers to hike prices again.

“When it comes to the US consumer, ‘resilient’ seems to be the most common word used to describe them. They are savvy and hunt out the best prices, which is something Walmart’s been able to capitalise upon. But they’re also putting record amounts of spending on credit and that could potentially spell trouble down the road.”

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