5 things to watch on the FTSE 350 on Wednesday 5 Oct 2022

The FTSE 350 regained ground on Tuesday, as US markets climbed…

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.

Lady wearing a head scarf looks over pages on company financials

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.

The FTSE 350 steadied on Tuesday, despite continuing political and economic uncertainty.

FTSE bounces back

First we thought Chancellor Kwasi Kwarteng was going to bring forward the publication of his fiscal plans. But then he confirmed he wasn’t, and was sticking to his original date of 23 November. Oh, and then he later said he will release it all early after all. Confused? You will be.

The FTSE 100 still put in a positive day, gaining 178 points (2.6%) to close back above the 7,000 level at 7,086 points. Banks and insurers were among the day’s winners, while utilities companies were among the few fallers.

The FTSE 350 added 101 points (2.7%) to end Tuesday at 3,909 points. It’s sometimes possible to gauge market sentiment and guess were things might go the next day. But trying to figure what the market might do Wednesday is not easy.

US support

We might see a UK boost Wednesday after US markets recorded another day of gains. The S&P 500 put on 113 points (3.1%) Tuesday to close at 3,791. At the same time, the Nasdaq closed above 11,000 at 11,176 points, for a 361-point (3.3%) gain.

The S&P 500 and Nasdaq are now both up 5.7% in the first two days of the week.

Tesco results

Tesco heads the market news Wednesday, with the supermarket giant set to deliver first-half results. The first quarter saw a small like-for-like sales fall in the UK and Ireland, excluding Booker sales. But Tesco’s market share increased a little.

The Tesco share price is down 15% over the past 12 months, and 12% down over five years. But the company has been paying progressive dividends, forecast to yield around 5.5% this year.

Interim dividend

Wednesday is another thin day on dividend news, but shareholders in international property services company Savills should be getting their interim dividend payments. A modest full-year yield of 2.4% is forecast, after weakness has sent Savills shares down 37% in the past 12 months.

Brokers’ updates

Brokers are remaining mostly positive in their recommendations on FTSE 100 stocks. Deutsche Bank has just reiterated its buy stance on AstraZeneca, setting a share price target of 12,000p — 20% ahead of the current price. It follows a day after Citigroup also reiterated its buy recommendation on the pharmaceuticals giant.

Barclays, meanwhile, is bullish on Reckitt with a target of 8,900p, hoping for a 49% gain.

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.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool UK has recommended Barclays, Reckitt plc, and Tesco. 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

Up 20% in a month, should investors consider buying Marks & Spencer shares?

Shares in retailer Marks and Spencer have surged ahead over the last month, despite a cyberattack. Roland Head takes a…

Read more »

Charticle

Here are the latest growth and share price targets for Nvidia stock

Ben McPoland checks out the latest forecasts for Nvidia stock to assess whether it might be worth considering for a…

Read more »

Growth Shares

Yikes! This could be the most undervalued growth stock in the FTSE 100

Jon Smith flags up a growth stock with a low price-to-earnings ratio and a share price back at 2020 levels…

Read more »

Abstract bull climbing indicators on stock chart
Investing Articles

3 beaten-down FTSE 250 shares to consider buying before the next bull market

Paul Summers thinks brave investors should ponder buying some of the FTSE 250s poor performers before they recover strongly.

Read more »

Investing Articles

Gold prices soar while the Fresnillo share price slumps. What gives?

With a gold bull market in full swing, this Fool argues that the falling Fresnillo share price may not remain…

Read more »

Investing Articles

2 FTSE 100 shares I’m avoiding like the plague right now

While the FTSE remains packed with opportunity, many of the index's blue-chip shares could be at risk as trade tariffs…

Read more »

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

Here’s how an investor could aim for a million buying under 10 shares

Christopher Ruane explains why doing less, not more, of the right things could be the key to success as an…

Read more »

Investing Articles

Could this new risk cause a stock market crash?

Tariffs and a potential recession are two major stock market risks right now. But there’s another risk that concerns Edward…

Read more »