HSBC Holdings Plc gains as the Hong Kong-based bank continues its volatile week of trading
- NYSE:HSBC adds 1.32% on Wednesday even as broader markets sell off throughout the day.
- HSBC continues to recover as China economy strengthens on fading COVID-19 concerns.
- HSBC shows an upward trajectory following its most recent earnings report beat Wall Street estimates.
NYSE:HSBC has had a tough year alongside much of the global banking sector as low interest rates and financial volatility have ravaged banks around the world. Shares of HSBC on the New York Stock Exchange fell by 1.32% on Wednesday to close the most recent trading session at $25.24. The move comes following a tumultuous week in trading that has seen HSBC spike nearly 5% on Monday following Moderna’s (NASDAQ:MRNA) news about the efficacy of its coronavirus vaccine candidate, which was followed by a 4% drop on Tuesday.
China and much of Asia have seen a somewhat return to normalcy as the COVID-19 pandemic continues to ravage the West. Hong Kong accounts for over 90% of HSBC’s profits and as the island and mainland China begin to slowly open their economy back up, we can reasonably expect HSBC to follow suit in its top-line revenues. HSBC is rebounding over on the London Stock Exchange as well as the company, like many others, were forced to stop paying a dividend to its investors. At its most recent quarterly earnings call, HSBC forecasted a return to dividend payments starting in 2021.
HSBC stock price and quote
News of potential COVID-19 vaccines have resurrected sectors that were hit the hardest by the pandemic, and the global banking industry is starting to rally. Despite expected low interest rates over the next couple of years, a re-opening of the economy in China and inevitably the United States, should help HSBC climb back from its current low trading levels.
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Stocks Reporter
FXStreet
