FTSE in the red as earnings disappoint

Adam Vettese, analyst at investment platform eToro, says: “The FTSE has pulled back around 0.9% today, after some noticeable disappointments on the reporting front, and as investors attempt to parse clues from central bankers on the timing of potential rate cuts.

“Glencore slid sharply in the immediate aftermath of announcing a large drop in earnings, as conditions in the energy market that fueled huge profits last year have eased, and also announced a cut in its dividend. It’s worth noting, though, that the company’s earnings are still historically strong, and compare very favourably to years before the price distortions of the Russia-Ukraine war.  After falling 5% in early trading, its shares had recouped much of their losses by the afternoon in London.

“Investors have one eye on the granular detail of companies reporting and another on the big picture of what steps central banks will take to alter financial conditions. Various policy makers are speaking today, including Dr Swati Dhingra, a member of the BoE’s Monetary Policy Committee, and minutes from the January Fed meeting are due later.”