Markets Overview:

UK 100 called to open -33 points at 7501 (18.4 points of the fall are dividends); U.S. equity futures dropped along with most stock markets in Asia on Thursday as investors mulled over the implications of a surge in the number of coronavirus cases in China’s Hubei province, after it deployed a revised methodology. In Asian sharp initial falls were somewhat pared by the close, with the Nikkei closing down 33 points at 23,827 and the Hang Seng closing down just 71 points at 27,752. This followed on from a very buoyant trading session in the US which saw the Dow Jones trading once again towards record highs having added 275 points to close at 29,551, the S&P saw a similar percentage gain to close at 3,379, a gain of 21 points and the Nasdaq completed the green sweep, adding 87 points to close at 9,725.  Oil picked up further after hours to trade at $56 per barrel, whilst global concerns saw safe haven gold rally back to recent high of $1575.

In corporate news this morning:

Barclays reported a better than expected profit before tax of £6.2bn for 2019, which was above the average analysts forecasts of £5.7bn. Barclays also stated that the FCA are investigating their CEO’s (Mr Staley) ties to Mr. Epstein. The investigation is ongoing and Mr Staley retains the full confidence of the board during this period. 

Centrica announce that their annual profit drops 35% hurt by government introduced price cap on energy bills as well as lower natural gas prices. Operating profit fell to £901m from £1.39bn. Centrica says it expects 2020 profit from its core divisions to be in line with 2019, but warned upstream earnings may be hit hard by lower commodity prices. 

Coca-Cola HBC posts higher profit and sees faster growth in 2020. Profits rise +11.9% to 715.3m euros helped by demand in emerging markets like Nigeria and Romania.  

Indivior posts quarterly loss and had forecast lower 2020 revenue after its opioid addiction treatment lost more than half of its market share to rivals in the US, its biggest market. The loss came in at $55m compared to a profit of $24m a year earlier.

Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Reporting Today:

Bank Of Georgia, Barclays, Centrica, Coca-Cola HSBC, Indivior, Relx, MJ Gleeson, Great Portland Estates, Just Eat, Lancashire Holdings, SolGold

Reporting Tomorrow:

Astrazeneca, Royal Bank Of Scotland, Segro

In Focus Today:

EU - German Harmonised index of consumer price

US -  Consumer Price Index

Todays Ex Dividends:

UK 100 :

Royal Dutch Shell A

Royal Dutch Shell B

BP

Polymetal

Hargreaves Lansdown

:

PZ Cussons

Greencoat UK Wind

Rank Group

Upgrades/Downgrades

Mondi Downgraded to Add by Investec (Bloomberg: 10 Buys/ 5 Holds/ 1 Sells)

NMC Health Downgraded to Sell by Societe Generale (Bloomberg: 4 Buys/ 0 Holds/ 2 Sells)

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