- Brief reprieve for UK stocks quickly fades away
- US market volatility continues
- Halma’s steady progress looks attractive
- Soft RICS Housebuilder survey
- Gold shines while traders remain cautious on Bitcoin
- Oil prices under pressure from trade tensions
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“UK markets may have ended a 6-day losing streak in yesterday’s session but that feeling of positivity looks set to quickly fade away, with the FTSE 100 opening 0.3% lower. Volatility is the name of the game after some major US market swings, and it looks like investors will need to strap in for more to come.
It was another rollercoaster ride on Wall Street yesterday, as investors grappled with mixed signals from softer-than-expected inflation data and lingering trade-war anxiety. The S&P 500 swung wildly – plunging over 2% before rebounding sharply – extending its streak to an eye-watering 14 straight sessions of intraday volatility not seen since 2022. AI-focused tech stocks, battered and bruised in recent weeks, enjoyed a welcome comeback as traders cautiously ventured back into high-growth names, betting that easing inflation might finally calm jittery markets – though that seems unlikely, with futures suggesting a reversal of yesterday’s gains when markets open later today.
Halma, a FTSE 100 leader in life-saving technologies, has delivered yet another robust trading update, putting it firmly on course for an impressive 22nd consecutive year of record profits. Despite navigating tricky economic and geopolitical conditions, Halma’s resilient business model and agile operations mean margins are better than expected, and that should mean profit expectations for the year can tick higher. In today’s volatile environment, steady and dependable businesses like Halma – while not always headline-grabbing – offer investors an attractive blend of quality and reliability when it’s needed the most.
UK housebuilders faced fresh headwinds in February, as RICS survey data suggested the property market might be losing some of its recent momentum. Fewer estate agents reported rising house prices than anticipated, with buyers and sellers both stepping back amid caution around looming stamp duty changes and wider global uncertainty. Yet it’s not all doom and gloom as other indicators, like strong demand data from Zoopla and upbeat comments from housebuilders themselves, paint a picture of a resilient market.
Gold prices are hovering near record highs, as investors flock to safe-haven assets amid rising global trade tensions and fresh tariff threats from President Trump against the EU. While weaker-than-expected US inflation provided some comfort, but the risk that prolonged tariff conflicts could reignite inflationary pressures is fuelling further appetite for stable assets like gold. Meanwhile, Bitcoin’s ongoing price fragility reinforced concerns about its reliability as a store of wealth, a stark contrast to gold’s enduring appeal in uncertain times.
Brent crude oil prices slipped below $71 per barrel in early trading, reversing earlier gains as traders once again grappled with escalating global trade tensions. Threats of additional tariffs by President Trump, combined with retaliatory moves from the EU and Canada, have intensified market concerns, overshadowing earlier optimism driven by strong US gasoline demand and easing inflation signals. Meanwhile, uncertainties over Chinese demand and OPEC+’s plans to increase production – including Kazakhstan’s quota breach – continue to cast a shadow over the energy market’s outlook.
