One of the most interesting things about the stock market is the wide variety of events that can impact the share prices. As we go into the new week, there are several events I’ve got my eye on that could impact individual names in the FTSE 100, as well as the entire index.
Here’s the brief rundown.
Finger on the pulse for US-related stocks
First up is the full-year results for Ashtead Group on Tuesday. With a market-cap of £23bn, it’s no small company. Over the past year, it’s been a strong performer in the FTSE 100, gaining 32% along the way.
I expect the results to be strong. After its guidance earlier this year, management said earnings should be ahead of expectations. Of course, some of this optimism is already factored into the current share price. Yet more good news on the day could see the stock jump.
The results are important, not just for Ashtead, but for investors that have exposure to US stocks. Ashtead generates around 85% of sales and 90% of profits from America. If it shows strong performance, it could help to reassure other investors that the US won’t enter a recession this year.
A pause in interest rate movements
On Wednesday, eyes will be focused back over to the US again for the Federal Reserve meeting. For the past 10 months, the central bank has increased interest rates.
There’s currently a 77% chance the Fed won’t raise interest rates. The pause in this sense should reflect that global monetary policy tightening could be coming to an end. This could be cheered on by investors, even here in the UK.
Given the correlated nature of stock markets around the world, the FTSE 100 could jump if there’s no hike on Wednesday. It could also help to influence the Bank of England if they see major peers deciding to halt further rate increases.
More full-year results due
Finally, Thursday will provide us with full-year results from Halma. Its group of 45 companies helps in a wide variety of life-saving technologies.
The results are expected to be positive, with existing income investors likely paying attention to an increase in the dividend per share. Expectation is for a 20.4p pay out. If delivered, it would be the 44th consecutive increase in its annual dividend of 5% or more!
However, with a current dividend yield of 0.78%, it’s all relative. It’s almost 3% below the FTSE 100 average, so is unlikely to cause new investors to want to jump onboard.
All three events have the potential to induce share price volatility, both for Ashtead and Halma. Yet the results could also impact similar stocks in the index. As for the Fed meeting, I expect this to move the FTSE 100 as a whole.
