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August 24, 2015 in
Sussex & the City: The China effect – sell in May and go away?
Our main UK stock market index, the FTSE 100, has fallen more than 10% since its peak of 7,104 on 27th April. The worst performing stocks have been...
July 14, 2015
Sussex & the City: A rollercoaster week in the markets
in Research
Volatility has been high over the last week and investors have had to endure a rollercoaster ride in the financial markets. At first, oil prices, Greek woes and a deepening Chinese stock market crisis weighed on the main UK market, the FTSE-100, sending it swiftly towards correction territory. Next we had trading on the New York Stock Exchange suspended over an apparent technical glitch. Then we had some recovery in the UK as investors digested the far-reaching summer budget. We ended last week with further recovery in share prices as investors sought trades that saw Eurozone leaders vote on a package of reforms tabled by Greece to resolve its debt crisis.
Markets are expected to remain volatile – Euro zone leaders are likely to demand key reforms from Greece to restore trust and before they will open talks on a financial rescue to keep it in the European currency area.
Moving onto stocks: British Airways and Iberia owner International Consolidated Airlines Group received a welcome boost on news that is offer for Ryanair’s 29% stake in Aer Lingus had been accepted. Among other risers, housebuilders Taylor Wimpey and Barratt Developments climbed after the government announced measures to remove obstacles to building new homes.
Joining the upward trend, Standard Life was one of the top movers after Barclays raised its price target. In a bullish note on European insurance, the bank said it expects flows in life insurance to remain positive and subsequently upgraded a slew of insurers, among them RSA Insurance, which has sizeable operations in Horsham.
Elsewhere, mid-cap miner Lonmin fell to its lowest level since listing in 1982 as falling platinum prices and Glencore’s disinvestment of its shareholding continued to weigh on sentiment. Sports Direct International was on the rise after hedge fund Odey Asset Management disposed of just under 1.3m shares. Finally Guildford based, ReNeuron, a cell therapy and expanding British biotech company received a boost when it raised another round of funding to help in its work into stroke, blindness and cancer.