There have been several consistent themes running in 2018, each shifting in level of importance as events unfold.
None of these possible game changers has fulfilled its potential yet, but none has been resolved either, so investors continue to factor in risk around trade with China, nuclearization of North Korea, conflict in the Middle East, rising bond yields and monetary policy mistakes.
US 10-year Treasury yields above 3% could eventually convince equity investors to switch allegiance, and even two-year money in the UK is becoming more attractive and might be an area of concern for equity markets further down the line.
Ocado (OCDO) was a marmite stock for years, and only last November, when it struck a long-awaited international deal in France, did attitudes change. Further overseas deals cemented share price gains, and soothed valuation concerns.
Today’s deal with US colossus Kroger goes even further, and Ocado is so confident it’s picked the right partner that talks with other American retailers are off. This is the big one for Ocado!
Source: interactive investor Past performance is not a guide to future performance
Thomas Cook (TCG) should still meet expectations for the full-year, but it lost another slug of money in the first half. UK margins are under pressure, too, and with Cook shares having tripled over the past two years, investors will have plenty of spending money for the summer holidays
That Cook is pulling the plug on its Club 18-30 holidays is welcome news and inevitable, as younger holidaymakers are a more discerning bunch these days. A tacky, hideously outdated and increasingly unprofitable franchise even when Cook bought the business in the late 90s, Club 18-30 should have been scrapped years ago.
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Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company’s or index name highlighted in the article.