This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
We’re fast approaching the next round of quarterly reporting, which kicks off next week with the major US Banks like Citigroup JPMorgan get their latest report cards.
Historically these have been a pre-cursor to the retail investor’s favourite – the UK listed banks, the likes of Lloyds (20% from 2018 highs), Barclays (21% from 2018 highs), RBS (16% from 2018 highs) and HSBC (16% from 2018 highs).
In fact, last week it was reported that Lloyds shares are, on paper, the cheapest they have been, when taking into account all factors, since WW2! Could Q3 results, due soon, be the catalyst required to see them bounce back?
This week has seen a jump in US government bond yields, with 10yr paper backed by Uncle Sam now pretty much guarantee-ing a 3.2% annual coupon and the capital returned in its entirety at maturity! While this has provided competition for traditionally defensive stocks (consumer staples, Utilities, etc) it has boosted Banks which are a beneficiary of higher interest rates and yields, able to charge more for loans than they pay for what they take on deposits.
One thing is for sure, in these times it has never been more prevalent to have information at your fingertips. Here at Accendo we understand that the advantage of this in current market conditions is likely to be the difference between being one step ahead of other investors and thinking “if only”.
Hence why we are now providing our clients with even more information than before (See Mike’s blog for more on this ). Want to know about any upgrades or downgrades, or what major City institutions are thinking about a company’s shares? Would you like earnings previews before the UK Banks report? All of this contributes to you having the tools necessary to make informed decisions about your investments. Because it’s your money.
To put yourself at a competitive advantage click here for this type of information daily. I’m sure, like me, you are not only interested but even excited about what next week will bring in terms of US banks profits and outlooks, and the rea-across for the Uk’s big high street four.
Have a great weekend!
Chris Peters, Trader, 5 Oct 2018
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Prepared by Michael van Dulken, Head of ResearchComments are closed.