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US third quarter earnings will be crucial for market confidence
Thursday 20 Oct 2022Putting all the tumult in the UK to one side for a moment, markets are likely to be driven by US earnings over the next few weeks so investors should make a note in their diary of when major US companies are reporting. The third-quarter earnings season has actually already started with results from...
Why have property trusts been so badly hit during the sell-off?
Thursday 20 Oct 2022As investors in the property sector will know, REITs or real estate investment trusts have been one of the worst parts of the market as interest rates expectations have climbed in recent weeks. Since the middle of September, the average REIT has lost more than 20% with some racking up losses of...
Why Tesla faces a struggle to match high expectations in third quarter
Thursday 13 Oct 2022Since the start of the year analysts have upped their 2022 earnings forecasts for Tesla (TSLA:NASDAQ) by around 22% to $4.10 per share while 2023 EPS forecasts have shot up around 40% according to Refinitiv data. Higher expectations against a backdrop of slower global economic growth could prove a...
Renewables trusts and utilities stocks crash on price cap plan
Thursday 13 Oct 2022Stocks and trusts with exposure to the renewables sector have taken a big hit over legislation to set a temporary cap on their revenue to help lower wholesale energy prices. Announced on 11 October, the level of the cap is still a matter for consultation but had been expected to take a similar...
UK fund outflows surge to £2.6 billion as investors take fright
Thursday 13 Oct 2022According to figures from the Investment Association (IA), retail investors withdrew £2.6 billion from UK open-ended funds in August 2022 as the outlook for global economic growth continued to deteriorate, marking the seventh month of outflows this year. August’s heavy selling by fund investors...
Home improvement market grinds to a halt as consumers retrench
Thursday 13 Oct 2022Recent trading updates from various builders’ merchants and building supplies companies suggest homeowners are no longer spending as freely on ‘doing up the house’ as they were during the pandemic. When everyone was cooped up at home in the first half of 2020 with cash to spare and DIY stores were...
FTSE 100 firms set for record cash return in 2022 but pressures are mounting
Thursday 06 Oct 2022FTSE 100 companies are on course to return a record amount of cash to shareholders in the form of buybacks and dividends this year, but this generosity may not last given pressure on profit margins. AJ Bell’s latest Dividend Dashboard report shows that while the expected FTSE 100 aggregate dividend...
Find out which stocks surged and slumped during a turbulent third quarter
Thursday 06 Oct 2022The FTSE 350 index finished a volatile third quarter to September 2022 down 4.5% amid continuing worries over stubbornly high inflation and rising rates as well as geopolitical instability. A slew of profit warnings, notably from consumer stocks, and a sell-off following the mini-Budget, capped off...
Why dollar strength and foreign exchange volatility is bad for stock markets
Thursday 06 Oct 2022After a relatively calm period foreign exchange markets have become a source of stock market uncertainty. Sharp moves in exchange rates are not conducive to international trade which has already suffered from the effects of the pandemic. The recent 10% fall in sterling against the US dollar may...
Will Porsche shares surge like Ferrari or skid like Aston Martin?
Thursday 06 Oct 2022Shares in Porsche (P911:ETR) have made a steady start after the German sports car maker listed shares in Frankfurt on 29 September 2022. The shares climbed as high as €85.88 following the closely watched IPO (initial public offering), the largest listing in Germany in more than 25 years despite a...