The FTSE 100 fell by 0.2% this morning to below 6,690 as the index gradually retreated following heavy gains from Monday and the week before. Next Monday will provide a clearer indication of where the UK economy is at as an announcement is expected around the easing of lockdown restrictions.
“The latest day of destiny for investor sentiment feels like it is coming on Monday when Boris Johnson is set to reveal the pace at which coronavirus restrictions will be eased in England,” said Russ Mould, investment director at AJ Bell.
Barclays reported its end of year results, while on the FTSE 250, Moneysupermarket confirmed losses due to a slump in demand over 2020. Barclays is the first of the major banks to release results over the coming days, with Natwest posting on Friday, while HSBC and Lloyds will provide updates early next week.
The FTSE 100 movers
Rio Tinto (3.54%), Evraz (3.19%) and Ashtead Group (3.07%) head up the index as the day’s biggest risers so far.
Down at the bottom, Smith and Nephew (5.4%), Imperial Brands (4.8%) and Barclays (3.54%) have seen the biggest drops at mid-morning trade on Thursday.
Barclays
Barclays announced a 68% loss in Q4 net profit following the company’s decision to set aside funds as an insurance for bad loans. This offset strong results from the bank’s investment banking arm during the coronavirus pandemic.
Barclays’ profits dropped from £618m in the fourth quarter of 2019 to £220m a year on. However, the results exceeded analyst expectations of a small loss. Overall, the FTSE 100 bank announced a 30% dip in pre-tax profits to £3.1bn for the year, down from £4.3bn in 2019.
Moneysupermarket
On the FTSE 250, Moneysupermarket’s profit and revenue slumped in 2020 as lockdowns resulted in a fall in demand for the price-comparison website’s travel insurance and credit products. The company confirmed pre-tax profit had fallen to £69.3m in 2020, down from £94.9m the year before. Moneysupermarket also announced a dividend of 11.7p per share, which is the same level as 2019.