HSBC Shares at Crucial Support Ahead of Earnings: Should You Buy?

  • HSBC has seen its share price outshining other global banks.
  • The bank will reveal its earnings Monday next week.
  • China’s slowdown will likely impact the earnings.

The HSBC share has experienced pressure as market players wait for coming earnings. It trades under LON: HSBA ticker. While publishing this post, it traded near 515p, approximately 7.7% beneath this month’s highest mark. The stock has lost nearly 10% from this year’s high, translating to correction conditions. Still, HSBC has outperformed global banks such as NatWest, Barclays, and Lloyds.

HSBC’s Upcoming Earnings

HSBC is a renowned global bank with more than $2.9 trillion. It’s the 18th largest bank worldwide. Moreover, it boasts operations in crucial regions such as the United Kingdom, China, the United States, Hong Kong, and Mainland China.

HSBC stayed in the transition phase within the last few years, increasing its focus on the China market. For instance, it moved its primary leaders from London to Hong Kong. Also, it has led several loss-making nations, including the United States and France.

Furthermore, HSBC shifted its dedication to its wealth management arm. It wants to compete with leading wealth managers in China, including Credit Suisse and UBS.

THE HSBC stock will respond to the anticipated earnings coming Monday next week. The firm’s quarterly results declined to around $12.5 billion in Q1. Its CETI ratio plunged to 14.1% though hovering beyond the 12% recommended level.

Analysts trust HSBC will present a lucrative report, backed by surged interest rates and offset by China’s slowdown. Standard Chartered Friday report revealed its underlying pre-tax return increased by 7% to $1.32B in the second quarter. Also, it declared a $500m share buyback plus a strategy to return $5b to stakeholders. Thus, HSBC might adopt similar moves.

HSBC Share Prediction

The daily chart indicates that HSBC shares maintained downtrends over the last few weeks. Meanwhile, the stock has printed an ascending trend line. The price sways at this channel’s lower side. Also, HSBC stock moves briefly beneath 25- and 50-day moving averages.

Thus, the HBSC share price exhibits a neutral stance. A decline beneath the channel’s lower side will confirm sellers’ dominance, welcoming a drop under 500p. Another case would mean a possible rebound and the channel’s topside retest at 560p.

Editorial credit: William Barton /

Leave a Reply

Your email address will not be published. Required fields are marked *