5 things to watch on the FTSE 350 on Monday

How will the FTSE 350 respond to last week’s mini-budget?

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Woman using laptop and working from home

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

We’ll see this week how the FTSE 350 settles down to last week’s mini-budget and the latest interest rate hike.

UK stock market

New chancellor Kwasi Kwarteng’s tax cuts have shaken the markets. They’ve shaken the pound, too, and it’s fallen to a 37-year low.

On Friday, the FTSE 100 fell 141 points (2%), to end the week at 7,019. During the day, it briefly dipped below the 7,000 level. A similar percentage drop took the FTSE 350 down 78 points to 3,882.

Traders are expecting a volatile day Monday, and it’s anyone’s guess where the FTSE 350 might go on the day and through the week. Not that daily movements mean much to long-term investors, though. Except maybe short-term bargain buys.

US markets

US stocks also had a tough day Friday. The S&P ended 1.7% down on the day, on 3,693 points. The Nasdaq dipped another 1.8% to finish below 11,000 on 10,868 points. If UK shares have a tough morning, US stocks might follow them later in the day.

Dividend payments

Monday is a quiet day as far as company news goes. But Legal & General shareholders will have first-half dividend cash coming their way. The insurance firm lifted its interim payment by 5% to 5.44p per share, and analysts are forecasting a full-year yield of close to 8%.

It’s interim dividend payment date from private equity firm Bridgepoint Group too, at 4p per share. Since IPO in July 2021, Bridgepoint shares have fallen 55%.

Week ahead

With little happening on the company front Monday, investors’ eyes will be cast to the week ahead.

We should have interim figures from boohoo Wednesday, and Next on Thursday. Boohoo shares have been struggling, dropping nearly 85% over the past 12 months, so any sign of uptick would be welcome there. Analysts are expecting earnings to grow over the next couple of years, but it looks like the market might take some convincing yet.

Interim results from troubled cinema chain Cineworld are due on Friday. The actual results, though, are likely to be overshadowed by any update on the possibility of a company rescue.

Economics

We await a few economic updates during the week. Right now, analysts are warning that the UK’s credit rating could be negatively affected next month by the tax cuts from the mini budget and the falling pound. And they’re urging the Bank of England to intervene.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

£10,000 invested in Barclays shares 1 month ago is now worth…

Barclays shares have carried on where they left off in 2024, by climbing far faster than the FTSE 100. Harvey…

Read more »

Investing Articles

I’ve been watching the easyJet share price like a hawk. Here’s what it did last week

Harvey Jones can't take his eyes off the easyJet share price. He thinks it looks good value and ready to…

Read more »

Investing Articles

A £10,000 investment in Nvidia stock 6 months ago is now worth…

Nvidia stock's shown a lot of volatility for a mega-cap company in recent weeks. Dr James Fox explores how an…

Read more »

Investing Articles

4 reasons Ferrari could continue to be a stock market winner

The global luxury goods market may have struggled in recent years, but you wouldn’t guess that from Ferrari’s soaring stock.

Read more »

Investing Articles

5 perfect starter stocks to consider for a Stocks and Shares ISA in 2025

Wondering which shares to buy for a newly opened Stocks and Shares ISA? Our writer thinks these five investments are…

Read more »

Row of terrace houses.
Investing Articles

Thinking about buy-to-let? Consider these UK stocks instead

Owning UK property stocks could be a better way to invest in buy-to-let, though there are drawbacks. Royston Wild explains.

Read more »

Investing Articles

Here’s a plan to target £7,500 a month in passive income

This writer outlines a roadmap that someone could consider taking to try and aim for a substantial future passive income…

Read more »

Young female hand showing five fingers.
Investing Articles

5 FTSE 250 stocks Fools are backing for promotion to the FTSE 100 this year

Can Vistry make an imminent return from the FTSE 250? One Fool thinks so -- read on to find out…

Read more »