Market News & Analysis
FTSE drops on Centrica, Barclays and Chinese numbers
Fiona Cincotta February 13, 2020 6:02 PM
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%.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.