Bellway’s solid foundations are on shaky ground amid buyer affordability concerns
Mark Crouch, market analyst for eToro says: “On any other day, a 27% jump in operating profit would be met with jubilation. But for Bellway, Tuesday’s trading update reads more like a well-built house in a declining neighborhood, overshadowed by what’s going on outside. Completions are up, profits are up, the pipeline is packed, and legacy defect costs are being kept on a tight leash. What’s not to like? Yet despite all this, the housebuilder flagged a sluggish start to its new fiscal year, as affordability concerns and fading consumer confidence continue to choke buyer demand.
“With the housing sector still struggling for momentum and cost-of-living pressures leaving potential buyers unable, or unwilling, to dip a toe back in, Bellway finds itself caught between a rock and a hard place. A £150 million share buyback shows internal confidence. However, with the stock still skimming multi-year lows, the housebuilder faces an uphill task. And for all its solid foundations, Bellway can’t force the door open, it’ll need the market to step inside first.”
Rio pushing for strong year end to meet targets
Adam Vettese, market analyst for eToro says: “Rio Tinto’s Q3 production report was somewhat of a mixed bag, with standout performances in bauxite and copper, demonstrating the miner’s strategic pivot toward energy transition metals. The company upgraded its bauxite guidance after strong output at Amrun, with the Oyu Tolgoi copper mine ramping up as planned. However, iron ore, which is a core earnings driver, fell short of expectations due to operational challenges, and management flagged a need for a strong Q4 performance to meet the lower end of its guidance.
“For investors, the case for mining stocks remains compelling, offering diversification for tech-heavy portfolios, as well as exposure to metals integral to global infrastructure and the green energy transition, with copper, lithium, and bauxite seeing sustained demand. The sector also benefits from its role as an inflation hedge, but volatility persists due to regulatory, geopolitical, and supply chain risks.
“Rio Tinto’s disciplined approach and improving portfolio balance bodes well for long term shareholders, though short-term performance will hinge on commodity prices and iron ore delivery.”
Comments: Gold and silver hit fresh highs
With trade uncertainty once again being pulled into focus off the back of Trump’s new China tariffs, safe-haven assets are rallying. Nikos Tzabouras, Senior Market Analyst at Jefferies-owned Tradu.com, highlights the high demand for precious metals for data centres, AI and clean energy, and also remarks that the current peace process in the Middle East could cool the geopolitical landscape and reduce the appeal of risk-off strategies.
Gold
“Gold reaches fresh all-time highs on renewed risk-off flows, as trade tensions flared up after US President Trump vowed to impose new tariffs on China and introduce export restrictions on critical software.
“Political uncertainty in Japan and the ongoing US government shutdown play into bullion’s safe-haven appeal, while expectations of Fed rate cuts and the resulting US dollar challenges compound its strength.
“However, President Trump later toned down his rhetoric, and easing geopolitical tensions following the Gaza ceasefire agreement could temper risk-off sentiment and trigger pullbacks.”
Silver
“Silver continues its record-breaking run, supported by safe-haven flows amid renewed trade tensions, while supply dynamics provide a powerful underlying catalyst that could propel the metal even higher.
“Silver demand is being driven by structural forces – notably its use in semiconductors and data centres powering the AI boom. At the same time, the precious metal is essential to clean energy infrastructure such as solar panels, and plays a critical role in the defense industry amid swelling security budgets.
“However, global economic risks stemming from tariffs and Trump’s scaling back of clean energy projects can hurt industrial consumption. Moreover, the Gaza peace process lowers the geopolitical temperature, which can dampen its risk-off appeal.”
Bellway earnings – “Bellway builds a solid foundation”
Chris Beauchamp, Chief Market Analyst at IG: “While Bellway has seen a slow start to the year, its share buyback and improved cashflow point towards underlying strength in the business and a confidence in the months to come. The shares managed to find a short-term low in September, and these results seem to provide the groundwork for a further recovery in the price.”
BP earnings: “not as upbeat as that from rival Shell”
Garry White, Chief Investment Commentator at Charles Stanley, comments: “BP’s third quarter trading statement was generally positive, but not as upbeat as that from rival Shell, which is expecting a significant boost in the third quarter from gas trading. BP’s new chairman, former CRH chair Albert Manifold, has been in the role for just two weeks and he faces some significant challenges. He is expected to simplify the business now it has pivoted its strategy back to oil and gas after an attempt to rebrand itself with years of heavy spending on being part of the transition to cleaner energy. Any asset sales should help the company improve its elevated debt position.”
Rare earth stocks rally highlights investor shift toward assets with tangible strategic value
Lale Akoner, global market analyst, says: “Rare earth stocks are rallying as investors pivot toward assets with tangible strategic value. China’s new export restrictions have reignited concerns over global supply, but the real story is the shift in market sentiment. After months of chasing big tech, investors are rotating into sectors tied to real industrial demand, materials that power EVs, AI, and defense systems.
“The US supply chain angle strengthens the case: Washington’s renewed focus on securing domestic production could turn short-term momentum into a structural theme. Still, in our opinion, this isn’t a one-way trade. The sector remains exposed to policy shifts and cyclical demand from EVs and clean tech. Overall, rare earths offer exposure to long-term industrial and geopolitical trends, but volatility remains high. Prices are driven as much by policy and sentiment as by fundamentals.
“Investors should treat the current rally as a tactical opportunity within a broader diversification strategy: focusing on companies with solid balance sheets, downstream integration, and credible government backing.”
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