Posted by AdviserDirect on 08/09/2019

Where now for UK banks' share prices as they trade at critical levels?

Where now for UK banks' share prices as they trade at critical levels?

UK banks have been in the limelight over the past fortnight, with earnings season having provided updates across the board. With the Bank of England (BoE) slowly showing their hand as a no-deal Brexit grows increasingly likely, the prospect of lower rates also denotes smaller margins for banks.

The prospect of a no-deal Brexit also points towards a likely economic decline, with investment and borrowing taking a hit as a result. However, this is a global story too, with the global growth slowdown continuing to play into market sentiment of banking stocks. With global markets hit hard over the course of the past week, we are seeing a number of these UK banks drop into major support levels that many will see as a possible buying opportunity.

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