Jump to content

Natwest in strong form ahead of earnings


Recommended Posts

UK banks have been bolstered by recent UK rate rises, and despite some weakness thanks to Ukraine tensions the overall move higher is intact.

bg_natwest_1200853.JPGSource: Bloomberg
 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 15 February 2022 

As the first of the big UK banks to report, NatWest will give us a flavour of how the sector is faring.

Higher rates have been a boon for the sector generally, and in the UK of course the sector has already benefited from the Bank of England (BoE)’s decision to hike rates. Further increases are expected, so this source of improving profitability should strengthen as time goes on.

A boost to the dividend and even a share buyback programme appear to be on the cards, providing a justification for the rise in the shares over the last year. However, with much good news now in the price and worries about the impact of inflation (especially high energy and fuel prices) on consumer spending continuing to rise, the shares might be entering a tougher patch.

The ongoing ascent of the share price has seen it reach levels not seen since the end of 2019. Gains have stalled recently at 250p, but the broader long-term uptrend is certainly intact, as is the one from late November 2021, with the dip yesterday and today’s lows both testing and holding rising trendline support.

A deeper retracement below 240p would bring 230p and then 218p into view, while a more bullish view requires a bounce back above 250p.

NWG%20150222.pngSource: ProRealTime
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,046
    • Total Posts
      88,077
    • Total Members
      69,037
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    leothayyil
    Joined 29/09/22 16:55
  • Posts

    • Asian markets headed lower after yet another miserable session on Wall Street. Tech stocks were hard hit following the downgrade of Apple stock by Bank of America, and in Japan the Nikkei lost over 2%. Losses in China were much more limited, as the official PMI figures from Beijing helped to provide a steadying influence. Nonetheless, stocks globally remain under pressure, and this seems unlikely to change for the time being. In FX markets, news that the UK prime minister will meet the head of the Office for Budget Responsibility prompted a further recovery in sterling against the dollar, with the pound recouping almost all its losses against the dollar seen over the past week. After German inflation yesterday today sees the release of eurozone inflation figures, along with US monthly personal consumption price data, the Fed's preferred inflation measure, which is expected to see a 6.1% year-on-year.   
    • For more up to date news on how markets will open, the latest earnings and economic news, watch IGTV live in the platform at 07:30am UK. Today’s coverage:   Indices: Global declines continue Europe expected to open down FX: USD remains the big story and a retracement continues – look for  better point to buy the dip. Despite chaos GBP looking at best week in 2yrs   Equities: NKE fell after poor earnings last night. DIS regroups Florida parks after hurricane Ian. META warns of restructuring Commods: Gold up for a 4th day. Oil drifting after Wednesday’s big gains. Lumber another new lower low. Aluminium up after LME proposal to limit Russian aluminium on its books      
    • Stock Market SP 500, NASDAQ 100 NDX, Russell 2000 RUT. Dow Jones Industrial (DJI) Elliott Wave Technical Analysis and Trading Strategies. US Markets News Today:S&P 500 closes at new 2022 low, as Apple sells off Elliott Wave Market Summary: The current trend down into Wave (1) is not completed, any move up is a corrective bear market rally Elliott Wave count: (ii) of v) of 3 of (1) Day / Trend Trading Strategies: Day traders look to short Wave c of (ii) Video Chapters 00:00 S&P500  14:08 NASDAQ 100 (NDX) 15:35 Russell 2000 (RUT)  20:17 End. Thanks for supporting! Analyst Peter Mathers TradingLounge™     
×
×
  • Create New...