A couple of the City’s largest listed companies are propping up the market this morning.
Banking giant HSBC has jumped 5% to a two-month high at the start of trading, after beating profit forecasts today.
Pre-tax profits fell by a third to $3.1bn (£2.4bn), down from $4.8bn a year ago.
That’s better than analysts had expected, with HSBC predicting smaller-than-forecast losses from bad loans. It’s also promising to shake up its business model - suggesting that it could start charging for certain products...
BP is also among the risers, up 1.4%, after beating expectations in the last quarter.
It made a profit of $86m (on the underlying replacement cost profit method favoured by oil firms), up from a $6.7bn loss three months earlier. [overall, losses narrowed to $450m from $16.8bn]
But.. BP also warned that trading remained tough due to the pandemic:
“The ongoing impacts of the COVID-19 pandemic continue to create a volatile and challenging trading environment. The gradual recovery in oil demand seen since the spring looks set to continue, led by strengthening demand in Asia.
The refining margin outlook remains challenging, given record high inventory levels and a leveling off in demand recovery for gasoline and jet fuel due to COVID-19.”