Top Story

FTSE drops on Centrica, Barclays and Chinese numbers

The FTSE is struggling this morning, weighed down by losses at Centrica, Barclays’ missed profit and a new way of diagnosing the coronavirus.

Britain’s largest energy supplier Centrica blamed the cap on household energy bills for a loss of more than £1bn in the last financial year and the decline in commodity prices prompted the firm to write down the value of its oil and gas assets. Shares tumbled around 17% in early trade but still managed to hold above the 12-month low of 64p, a testament to a tumultuous year of trading for the stock.  

Barclays bank is facing a whole different set of problems now that its chief executive is being investigated by UK financial authorities over his links to the convicted financier Jeffrey Epstein.

Coronavirus spike in context

Latest reports from China indicate that the number of coronavirus-related deaths has risen to the highest level so far but these should be taken in context. China has changed the way it diagnoses infected patients and has broadened the parameters to include a wider range of symptoms. There has been no retroactive analysis yet that would show if there has actually been an increase in cases measuring like for like, but in the past epidemiologists have said that the peak of the spread is likely to happen at the end of February or in early March.

Oil firms and miners reacted the worst to the China numbers, among them the heavily traded Glencore, Shell and BP. The latter two were also affected by a report from the International Energy Agency saying that the outbreak of the coronavirus could reduce the demand for oil by as much as 30% this year, with the worst decline expected in the current quarter. Brent crude prices dropped around 1% on the news while WTI lost 0.6%. 

 

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

The markets are moving. Stop missing out.

Open an Account