The FTSE 100 Index has slipped from its recent peak, trading around 10,670 after touching 10,891 earlier this month. The pullback comes as major constituents report earnings and crude oil prices climb. Investors now turn attention to a batch of heavyweight results due next week, including HSBC, Lloyds, NatWest, and BP.
Lloyds: Earnings and Strategy in Focus
Lloyds Banking Group, the UK's largest retail bank by customer numbers, has seen its shares fall sharply this year, dropping from 117.80p in August to around 100p. The decline extended this week after Barclays reported results and announced significant job cuts. Bulls hope Lloyds' upcoming earnings will provide a catalyst. Analysts expect net interest income to rise to £3.8 billion, supported by higher interest rates, with total income projected at £5.1 billion.
The bank is also expected to update on its Accelerate 2030 strategy, which focuses on cost efficiency, AI and digital transformation, and expansion into wealth management. Technically, the stock has fallen below its 50-day and 200-day moving averages, raising the possibility of a death cross pattern.
HSBC: Wealth Management and Cost Pressures
HSBC shares have also been under pressure, sliding from a June high of 1,608p to around 1,350p. The bank will release its quarterly results on Monday. Key areas to watch include cost levels, which have remained elevated despite cost-cutting efforts, partly due to China's capital requirements. The results will also shed light on its wealth management business, a key earnings driver. In the first half, international wealth and premier banking contributed $2.61 billion, up from $2.13 billion a year earlier. Hong Kong operations generated $5.13 billion, while the UK added $3.32 billion.
NatWest: Earnings Expected to Show Growth
NatWest has also experienced a notable sell-off, with shares falling from 726p to 626p. The bank is scheduled to report on Friday. Analysts forecast net interest income of £3.6 billion for the third quarter, with total income reaching £4.6 billion and profit around £1.61 billion. Like its peers, NatWest's stock is nearing a death cross, a technical signal that could attract further selling.
BP: Oil Price Surge Lifts Shares
BP stands out as a potential winner, with shares hitting a record high of 624p, buoyed by a rally in crude oil. Brent crude has climbed to $114 per barrel, and the upward momentum may continue ahead of the US midterm elections. Investors anticipate stronger future profits, and BP's upcoming earnings will provide further insight into its performance.
Beyond these four, other FTSE 100 companies to watch include Unilever, GlaxoSmithKline, Standard Chartered, and Haleon.
This article is for informational purposes only and does not constitute financial advice.
