The HSBC share price is in the spotlight as the bank earning season gets underway. The stock ended the day at 412p, which was 1.65% above the lowest level last week and 10% below the highest level this week. Other bank shares like Lloyds Bank, Barclays, and NatWest are also in focus.
HSBC news. HSBC is the biggest European bank in terms of assets. While the bank’s headquarters is in London, the company makes most of its money in Asia, where it has a large presence. Indeed, the bank has done many moves to solidify its presence in Asia in the past few months.
For example, it recently shifted some of its leading executives from London to Hong Kong. It also sold its American retail branches to intensify its push on wealth management in China. It aims to compete with the likes of UBS, Credit Suisse, and Goldman Sachs there.
HSBC share price is also in focus as investors watch bank earnings. So far so good. Reports on Tuesday showed that Goldman Sachs and JP Morgan revenue surged in the second quarter. This performance was notable because it was led by investment banking as the number and volume of deals increased. The two banks also raised their forward guidance.
While HSBC is different from Goldman and JP Morgan, there is a possibility that these results will boost optimism of the overall banking sector.
HSBC stock price will also likely be boosted by higher inflation from the US and Europe. This is likely to fuel the possibility of higher rate hikes, which will benefit bank stocks. At the same time, as shown belowm, analysts think that HSBC stock is cheap. Those at UBS, Credit Suisse, and HSBC expect that the stock will keep rising from the current level. They have a target of 450p, 465p, and 600p, respectively.
The four-hour chart shows that the HSBC stock has struggled lately. It remains between the support and resistance levels at 412p and 456p. It is also hovering at the neckline of the previous double-top pattern. Further, the stock is below the 25-day and 50-day moving averages. Therefore, there is a possibility that the shares will breakout lower below 400p soon. However, in the longer term, the shares will likely resume the upward trend.