The FTSE 100 Index has pulled back over the past few days, falling from this month’s high of 10,891 to its current level of 10,670. The retreat continued this week as top companies like Barclays released their earnings and crude oil prices jumped. This article looks at some of the top Footsie shares to watch next week, including HSBC, Lloyds, BP, and NatWest.
Lloyds Bank in focus as it releases its earnings
Lloyds, the biggest British bank by users, has been in a strong sell-off this year, a trend that continued this week after Barclays published its earnings and announced large layoffs. The stock has dropped from a high of 117.80p in August to the current 100p.
Therefore, bulls hope that the company’s earnings will provide a bullish catalyst. Analysts expect the upcoming results to show that its net interest income rose to £3.8 billion, helped by higher interest rates. Its total income is expected to come in at £5.1 billion.
The company will also provide more information about Accelerate 2030, the strategy it is working on through 2030. This strategy has several pillars, including cost efficiency, AI and digital transformation, and expansion in other areas like wealth management.
Technically, the stock has already dropped below the 50-day and 200-day moving averages, meaning that a death cross may happen.
HSBC earnings to provide color on wealth management
HSBC stock has been in a strong sell-off in the past few months, moving from a high of 1,608p in June to the current 1,350p. Like Lloyds, the company will publish its financial results on Monday.
The most important aspects to watch will be its costs, which have remained at an elevated level despite the cost-cutting measures. Costs have also risen because of China’s capital requirements.
Most notably, the results will provide more color on its wealth management business, which has supported its earnings in the past few quarters. In its last earnings report, the company said that the international wealth and premier banking business made $2.61 billion in the first half of the year, up from $2.13 billion in the same period last year. Its Hong Kong business made $5.13 billion, while UK made $3.32 billion.
NatWest in focus as earnings loom
NatWest stock has also been in a strong sell-off in the past few months, moving from a high of 726p to 626p. The company will also publish its earnings report on Friday, which is expected to show that its net interest income rose to £3.6 billion in the third quarter, with its total income rising £4.6 billion. Analysts also expect the profit to come in at £1.61 billion.
Like the other banks, NatWest stock has been in a strong sell-off and is also about to form a death cross pattern.
BP in focus as oil prices rise and earnings loom
BP is another top FTSE 100 stock to watch next week. Its stock has jumped to a record high of 624p, driven by the ongoing oil price surge. Brent has already jumped to 114p, and the upward trend may continue towards the midterm elections. As such, the stock will likely continue rising as investors predict more profits in the future. The company’s earnings are also expected to provide hints on its performance.
In addition to these four, other top FTSE 100 companies to watch will be Unilever, GlaxoSmithKline, Standard Chartered, and Haleon.
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