A decent start to the week for markets in Europe and Asia hopefully sets the tone for a better five-day trading session for investors, given the carnage we’ve seen for most of January,” says Russ Mould, investment director at AJ Bell.
Chatter about Vodafone being the next activist investor target put the telecoms company at the top of the FTSE 100 leaderboard, with several tech-related names close behind.
“The fact that Scottish Mortgage Investment Trust and Ocado are pushing ahead might suggest investors haven’t completely gone off tech investments,” said AJ Bell’s Russ Mould.
“Some of the value stocks which have done well during the recent market rotation were among the biggest fallers on Monday, including Imperial Brands and Anglo American.
“However, it is far too early to firmly state the value rally is over, particularly as we would need to see significantly more than just a day’s trading to define a trend.
“The big event on the calendar this week will be the Bank of England’s interest rate decision, where it is almost certainly going to raise rates. This is widely expected by the market and unlikely to prompt any volatility among UK stocks unless the central bank is aggressive with the amount by which it puts up rates.”