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Lull In Trading Ahead Of PMIs; Lloyds, Smith & Nephew, Moneysupermarket All Rise

Published 20/02/2020, 08:57
Updated 21/10/2020, 09:15

Following a couple of days of big movements, the European indices paused on Thursday morning, perhaps hesitant to do much until they’ve got a glimpse at tomorrow’s flash manufacturing PMIs.

Though the tone perhaps erred on the negative – there was, after all, a jump in coronavirus cases in South Korea – there was a definite lull after the bell.

The FTSE – which was one of the best performers on Wednesday, even if it remains well off the record highs seen elsewhere – scraped together a 0.1% increase, sticking its nose across 7460 to sit at a one-week peak. In contrast the DAX dipped 0.2%, with the CAC unchanged at 6100.

Helping keep the UK index in the green – just about – was Lloyds (LON:LLOY), which rose 3% despite a 26% drop in full year pre-tax profit to £4.39 billion. Investors may just be relieved that the PPI saga is now over, the bank finally reaching a settlement with the Official Receiver.

The index also benefited from a 8% increase by Smith & Nephew (LON:SN). Investors ignored the fact that its 2020 performance will be determined by the coronavirus, instead choosing to focus on a record revenue of $5 billion.

Elsewhere Moneysupermarket.Com (LON:MONY) – which saw CEO Mark Lewis announce he will be stepping down just yesterday – surged by 7.5% after posting a 10% jump in pre-tax profits to £97.9 million, off a 9% rise in revenue to £388.4 million.

The pound continued to fall on Thursday, slumping to a 10-day low against the dollar and one-week nadir against the euro, as tensions between the UK and EU showed no signs of abating. Brussels has accused Boris Johnson of ‘below the belt’ trade tactics – not great given that negotiations start in March.

The day’s UK retail sales could provide some relief for sterling, but only if they match, or exceed, analysts’ estimates of a swing from -0.6% to 0.7% month-on-month.

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