Proactive Investors -
- FTSE 100 sinks 64 points
- HSBC (LON:HSBA), down 7%, leads fallers
- easyJet (LON:EZJ) set to be promoted to FTSE 100
US markets to open lower as investors await Nvidia earnings
US markets are set to open lower on Wednesday, with the Dow Jones down around 75 points at around 38,500 points and the S&P around 30 points lower at 4,975.
However, the key focus for Wall Street investors will be how star-child Nvidia performs, with its results scheduled to be released at 21:20GMT/16:20EST.
Yesterday, the chipmaker became the US's most traded stock, overtaking Tesla.
However, some pre-earnings anxiety saw it trade around 4% lower, before suffering a further 2% drop in the aftermarket.
PRIMER: Nvidia (NVDA) scheduled to report Q4 FY24 earnings at 21:20GMT/16:20EST; conference call at 22:00GMT/17:00EST ???????? pic.twitter.com/0axQm7SpMM— Newsquawk (@Newsquawk) February 21, 2024
Beazley leads FTSE 100 risers after launching cyber risk management firm
Beazley, the insurance company, is leading the FTSE 100 risers on Wednesday after launching a new cyber risk management firm.
Shares lifted around 2% after the group revealed it had merged its own in-house cyber services team with its subsidiary and fellow cyber security firm Lodestone.
Beazley Security will look to combine its parent company's risk management services with the cyber security services offered by Lodestone.
Alton Kizzaiah, the current CEO of Lodestone, will take up leadership of the new firm, with him reporting directly to Beazley's head of cyber risks.
“Building cyber resilience is top of mind for business leaders and Beazley Security has been created to bring responsive cyber protections to the heart of the fight against ever-evolving threats. I’m excited to lead an outstanding team of specialists committed to providing clients with confidence and peace of mind,” Kizziah said.
FTSE 100 holds steady after morning's drop
The FTSE 100 is holding steady with its losses and is down around 65 points.
Leading the index fallers was HSBC, down around 7%, with the bank shedding value after its fourth-quarter profit slumped by around 80%.
“Exposure to Asia has given HSBC a different growth profile than its UK-focused counterparts but it brings risk too and that is writ large in its fourth quarter and full year results," said Danni Hewson, head of financial analysis at AJ Bell.
“The company has been stung by a $3 billion charge on its stake in a Chinese bank and write-downs associated with commercial real estate and the sale of its French business. That’s made the results a bit of a mess and led to a miss on full year forecasts."
Other fallers include Glencore (LON:GLEN) (-3%), Centrica (LON:CNA) (-3%) and BAE Systems (LON:BAES) (-2.5%).
On the other hand, strong risers have been few and far between, with a 2% jump for Beazley leading the way.
German economy in "difficult waters"
Germany has scaled back its growth forecasts as it continues to struggle with rampant inflation and a nearing recession.
The government now expects Europe's largest economy to grow by 0.2%, a strong cut from the initial 1.3% forecast.
It was approved by the cabinet on Wednesday during the government's annual economic report, with Robert Habeck, the economy minister, set to provide further details on the decision later today.
"The German economy continues to find itself in difficult waters at the beginning of the year," a draft of the report said, according to Reuters.
High inflation, loss of purchasing power, geopolitical crises and interest rate hikes are all said to be the causes of the reduction.
The FTSE 100 kept relatively steady on the back of the news, still down around 63 points.