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Unless something happens between now and 8.00am Monday, I think there will be a sharp bounce upwards and more volatility thereafter. Maybe some more decent sell and buy-back opportunity - but I'd prefer things to settle and head in a general northerly direction! I have to say that current market sentiment concerns me for the results coming up. Surely a modest
The volatility we are seeing, in my opinion, is nothing to do with inflation, Russia, Covid or any such like. The media and analysts have, for a while, been spooking the American market by suggesting a correction / crash is overdue, which then becomes a self-fulfilling prophecy. When it then unfolds, the markets and media look to current world events for an explanation - but they are looking in the wrong place. In truth, the NASDAQ has tripled in value in the last 5 years and markets cannot keep heading north at that pace without some check along the way. The irrationality of it is, how it impacts in the UK. The FTSE is pretty much where it was 5 years ago. Everyone on the global stage is saying how cheap UK stocks are. American banks have doubled in value in the last 5 years - Barclays is minus 10% where it was 5 years ago! Yet now the correction is hitting American banks, the contagion is hitting our own financial sector - as we see again this morning. Totally irrational. What this shows to me is that the UK stock market is pretty insular and investor faith and trust in it, and in particular the finance sector, reflects the tradition of British reserve. Yet our inferiority complex does not stop us panicking when we witness what is going on across the pond. What is happening in America is understandable. Given the FTSE's position is as it was 5 years ago and the fact that the British market has only just recovered from the pandemic, what correction is required to the FTSE? Barclays which is -!0% where it was 5 years ago, taking the same hit as American banks which have doubled in value in 5 years, is simply perverse.
Falling like a stone again!
I now realise its probably due to Deutsche Bank cutting their Barclays recommendation from 'Buy' to 'Hold'.
Does anyone have a view as to why Barclays, which fell sharply at last bell last night, is losing ground this morning when the FTSE and financials generally, are powering on?
Another bad day on the cards. Dropped 3p since opening and I cannot see investors taking chances on Omicron bad news over the weekend. So more sell off expected today.
8 months of progress slowly climbing back up the ladder wiped out in a day - and still falling! Curse the day my path crossed with a Barclays recommendation.
Except Barclays effectively took ownership of Staley's declaration to the FCA. If it transpires that Staley did have a personal relationship with Epstein and God forbid had some knowledge of what he was up to, then it will have a serious impact on the board at Barclays and undoubtedly the company's share price.
I think confidence is ebbing away again. A few months ago inflation worries were hurting Barclays as much as any other stock. Suddenly the markets decided inflation meant interest rate hikes and banks were loved again. Barclays powered on and beyond £2. Then Staley left - Standard Chartered turned in a foul set of results that caused collateral damage & Bailey did a U-Turn on interest rates. Now in general terms, without imminent rate rises, inflation is hurting Barclays as much as the next stock again and the markets are worried about the effects of Covid across Europe this winter. Specifically, I think there is an under-current as to what Staley might have in his closet re. Epstein that might do further Barclays damage and 7/9 of the last sessions has seen Barclays close lower. If this share price drips down into the £1.80's for any significant time I think it might fall away altogether. We need a quick confidence boost from somewhere to get back to mid-£1.90's and beyond.