3i, Fever-Tree and Thomas Cook

“Concern over the effects of a possible US interest rate rise sent jitters throughout markets with blue-chips firmly entrenched in negative territory in early afternoon trading,” says AJ Bell Investment Director Russ Mould.

“Venture capital group 3i was the FTSE 100 stand-out performer despite warning that market volatility and the EU referendum will weigh on sentiment with reduced mergers and acquisitions and delays in capital investment likely to persist while the uncertainty remains. 3i’s selective investment approach and balance sheet strength positions it well to deal with these uncertain economic and financial conditions.

“A bullish update from drinks group Fever-Tree saw its shares fizz. Sales for its premium mixers for alcoholic drinks are ahead of forecasts and results for the year are set to be materially ahead of market expectations. Strong sales and a favourable foreign exchange environment have driven gross margin improvements.

“Travel giant Thomas Cook’s shares plunged as terrorist attacks took their toll on bookings to Turkey, the group’s second largest market last year. Thomas Cook is facing a bleak summer and while it has seen increased demand for some destinations, including Spain and the US, this will not be enough to make up the shortfall. But holidaymakers who like to leave bookings until the last minute could snap up some cut-price deals to Turkey and give Thomas Cook an unexpected fillip.”

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