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HSBC tipped for boost from US interest rate delays

Published 26/04/2024, 12:33
© Reuters.  HSBC tipped for boost from US interest rate delays
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Proactive Investors - HSBC (LON:HSBA)'s full-year results were described as messy and noisy, so something more straightforward would be welcomed in next week’s trading update.

UK rivals' first quarter updates have been a mixed bag, but HSBC is more international with China and Hong Kong major parts of the business.

One hefty impairment has already been taken for Chinese associate BoCom due to the country's property crisis and an additional provision might be poorly received.

Some good news, for HSBC anyway, is that the rate of expected rate cuts in the US has slowed.

HSBC has said every point movement up earns it hundreds of millions of dollars with the reverse when rates start to come down.

In a recent note on HSBC analysts at UBS noted: “With the US$ rate curve now including two rate cuts rather than the six at the start of the year, there's room for an improved outlook to be shared at first quarter, we think, which may be powerful given the forthcoming 21c special dividend in quarter two."

The Swiss bank upped its price target to 630p from 620p.

Read more on Proactive Investors UK

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