Outlook is key
We are just days away from learning how one of the UK’s most important sectors fared in terms of financial performance in the three months to end-March (Q1). More importantly, we’ll find out how their key “outlook” statements stack up versus investor expectations for the rest of 2018.
Banks are an important barometer of growth given they grease the wheels of the economy, providing financing and a home for money. How much growth they report offers a gauge of business and consumer confidence, which can influence investor sentiment and – key for us - share prices.
Well off their Brexit vote share price lows of June 2016, the sector has staged an impressive recovery (+55%), even if off their best levels of early 2018, caught up in the recent market correction. Might Q1 results be the catalyst for the shares to turn north?
This preview looks at the drivers/trends in play for the UK banks, what their share price charts look like, how US Banks are influencing, and what to look out for in next week’s first quarter updates.
With an average 3-6% share price range for sector constituents reporting quarterly results since 2012, will we get the same, or better? Could you trade the early 8am response to results? What about the traditional rally in the run-up to results?