FTSE 100 Falls as Traders React to China Lockdowns, Ukraine War

The FTSE 100 falls 1.5% to 7089 points as investors react to lockdowns in parts of China to stem rising coronavirus cases and the latest Russia-Ukraine headlines. Asia-focused insurer Prudential shares slip 4.9%. Standard Chartered and HSBC drop 4.2% and 2.5% respectively as Asia accounts for a large proportion of earnings for both lenders. Mining shares decline as China is a major consumer of commodities. Energy stocks fall as oil prices drop on hopes that talks between Russia and Ukraine will resolve the conflict. "A sense of caution continues to shroud financial markets due to ongoing geopolitical tensions, rising Covid-19 cases in China, inflation fears, and looming U.S monetary policy tightening," FXTM says. (renae.dyer@wsj.com) 


 
Companies News:

Old Mutual Swung to 2021 After-Tax Pft Following Pandemic Recovery

Old Mutual Ltd. on Tuesday reported a swing to an after-tax profit for 2021 and an increased dividend following a strong recovery from the impact Covid-19 had on its operational and financial performance.

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Informa Posts 2021 Profit, to Resume Dividends in 2022

Informa PLC on Tuesday reported a profit for 2021, launched a second buyback tranche of 200 million pounds ($260.0 million), and said that it will resume the ordinary dividend this year.

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Ocado Group to Develop Auchan Retail Poland's Business

Ocado Group PLC said on Tuesday that it has signed an agreement with Auchan Retail to develop Auchan Retail Poland's business, without providing financial details.

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Ferguson 1H 2022 Pretax Profit Rose on Higher Revenue; Increases Buyback to $2.0 Bln

Ferguson PLC said on Tuesday that pretax profit and revenue for the first half of fiscal 2022 rose, and that it was expanding its share buyback program by $1 billion to $2.0 billion.

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Imperial Brands Is In Talks to Sell Russian Assets, Operations

Imperial Brands PLC said Tuesday that it has started to negotiate with a local third party regarding the transfer of its Russian assets and operations due to the continuing invasion of Ukraine.

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Inchcape Says it Is Leaving its Business Interests in Russia

Inchcape PLC said Tuesday that it has started a process to leave its Russian retail-only business as a result of the invasion of Ukraine.

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DFS Furniture 1H Profit Fell; To Return GBP80M to Shareholders

DFS Furniture PLC on Tuesday reported a lower profit for the first half of the fiscal year, and said it intends to return 80 million pounds ($104.0 million) of cash to shareholders over a 12-month period.

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Wickes Group Says Publication of FY Results Delayed

Wickes Group PLC said Tuesday that the publication of its preliminary results for the year to Jan. 1 have been delayed as its auditors have requested more time to complete the process.

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TI Fluid Systems' 2021 Pretax Profit, 2022 Revenue Outlook Strong

TI Fluid Systems PLC reported on Tuesday a rise in pretax profit for 2021 and said that it continues to expect to close 2022 with revenue-outperforming global light vehicle production volumes.

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Gresham House Profit, Assets Under Management Rose in 2021

Gresham House PLC on Tuesday reported significantly higher profit and assets under management for 2021, and said it was acquiring Burlington RE Property Management Ltd.

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Smart Metering Systems 2021 Adj Pft Beat Expectations; Raises Dividend

Smart Metering Systems PLC said Tuesday that 2021 adjusted pretax profit was above the board's expectations, and that it is confident of meeting 2022 guidance.

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Redde Northgate's FY Underlying Pretax Profit Seen Ahead of Views on Continuing Strong Performance

Redde Northgate PLC said Tuesday that it has continued to perform strongly and it currently expects to post a full-year underlying pretax profit comfortably ahead of consensus.

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Corporation Financiere Gets Low-Level Acceptances for CIP Merchant Offer

Corporation Financiere Europeenne SA said Tuesday that it has received acceptances for its mandatory 30.3 million-pound ($39.4 million) offer for CIP Merchant Capital Ltd. from shareholders owning 1.92% of CIP's issued share capital to which the offer relates.

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TP ICAP 2021 Pretax Profit Fell on Higher Significant Items

TP ICAP Group PLC said Tuesday that 2021 pretax profit fell after booking higher significant items, and that the recovery in volumes experienced in the second half has continued into 2022. 


 
Market Talk:

Ukraine Crisis Drives Sterling Even as Jobs Data Support BOE Rate-Rise Case

The latest U.K. jobs data released Tuesday support the case for the Bank of England to raise interest rates further on Thursday but sterling is likely to remain driven by the Russia-Ukraine war, ING says. "A 25 basis points [rate] hike was already fully priced in by the market, so the jobs data had no positive impact on GBP," ING analysts say. Optimism over Russia-Ukraine talks aimed at resolving their conflict should prevent GBP/USD from falling below 1.3000 but will likely continue to put upward pressure on EUR/GBP given the euro's higher sensitivity to the conflict, they say. GBP/USD strengthens 0.2% to 1.3028 but the pound falls against the euro, with EUR/GBP rising to a five-week high of 0.8456, according to FactSet.

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Russia's Invasion of Ukraine Seen Hurting UK GDP in 2Q, 3Q

The war in Ukraine is expected to hit the U.K.'s economic performance in 2Q and through the early part of 3Q, before healthy consumer and business fundamentals reassert themselves and lift momentum through 2H, according to Berenberg. In such a scenario, Berenberg forecasts two more interest rate increases this year, in May and August. Berenberg also expects the Bank of England to begin active bond sales in November as part of its quantitative-tightening program. The German bank forecasts two increases a year in 2023 and 2024 to take the bank rate to 2.0% by end-2024. (maria.martinez@wsj.com)


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(END) Dow Jones Newswires

03-15-22 0609ET