Source: Sharecast
The FTSE 100 was called to open flat at 8,659, having closed unchanged on Monday.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "The major US indices traded in the red on Monday, and selloff accelerated into the session end. The S&P500 slipped below the 50-DMA and closed below the 6000 mark. Nasdaq 100 also cleared its own 50-DMA.
"Microsoft fell more than 1% on news that they cancel some leases for US data centre capacity raising concerns that the company could be in an oversupply position - and overestimated demand previously.
"That obviously casts a terrible doubt in AI investors’ minds given that the past two years’ rally is mostly based on the expectation that the demand will explode, and the companies would rather struggle with limited capacity rather than overcapacity. As such, Nvidia took a 3% hit yesterday. The company will report its Q4 earnings tomorrow."
In UK corporate news, consumer goods giant Unilever announced that its chief executive was leaving “by mutual agreement” after just 19 months at the helm.
Hein Schumacher, who became CEO in July 2023 after serving as a board member for one year, is to step down on 1 March and will exit the firm on 31 May. He will be replaced by Fernando Fernandez, who has been the company’s chief financial officer since January 2024.
Medical equipment maker Smith & Nephew posted a sharp jump in full-year profit and revenue, driven by a rebound in its US knee and hip implant unit, which offset continuing headwinds in China.
Revenue jumped 4.7% to $5.8bn, while operating profit surged 54.6% to $657m. The results follow a profit warning after a third-quarter trading update and pressure from shareholders to break up the group.
Unite Group reported a strong financial performance for 2024, with adjusted earnings rising 16% to £213.8m and IFRS profit surging 331% to £441.9m, supported by rental growth of 8.2% and high occupancy rates.
The FTSE 100 student property specialist said it was optimistic about 2025-2026, expecting 4% to 5% rental growth, continued strong demand from students and university partners, and a fully funded £1.05bn development pipeline focused on Russell Group cities.
Strengthening its portfolio through acquisitions, disposals, and sustainability initiatives, Unite also improved its balance sheet, reducing net debt-to-EBITDA to 5.5x and lowering its loan-to-value to 24%.
