British bank Barclays reported a net profit of £1.6 billion ($2 billion) for the third quarter on Thursday, exceeding analyst expectations.

This result surpassed the £1.17 billion forecast in a poll by LSEG and marked a 23% increase from the same period in 2023.

Revenue for the quarter reached £6.5 billion, slightly above the predicted £6.39 billion.

Earlier in the year, Barclays introduced a strategic overhaul aimed at reducing costs, increasing shareholder returns, and ensuring long-term financial stability.

This strategy shifted more focus towards domestic lending while retaining its more unpredictable investment banking operations.

As part of the overhaul, Barclays acquired the UK retail banking business, Tesco Bank.

In the second quarter, Barclays experienced a slight year-on-year decline in net profit due to reduced income from its UK consumer and corporate banks.

However, its investment bank saw net profit rise 10% to £3.02 billion.

Barclays’ stock has surged 55% so far this year, rebounding from a dip in 2023.

Amid concerns over shrinking net interest margins due to falling interest rates, several banks have also announced restructuring efforts.

Earlier this week, HSBC revealed plans to consolidate its operations into four business units, while Deutsche Bank kicked off the third-quarter earnings season with higher-than-expected profits, driven by an 11% revenue increase in both its investment bank and asset management divisions.

Should you buy BARC stock?

Stephen Wright analyzes Barclays, highlighting its impressive performance in 2024, where the share price surged from £1.55 to £2.42, positioning it as a standout performer on the FTSE 100.

Currently, analysts have an average price target of £2.75, suggesting a potential upside of approximately 13.5% from the current price.

However, there is significant variance in predictions, with estimates ranging from £2 to £3.30, which introduces a level of uncertainty regarding future performance.

Wright points out the challenges in making accurate forecasts for Barclays, particularly due to the divergence in analyst opinions and the complex dynamics of the banking sector.

He notes that Barclays’ diversified structure, which includes a significant investment banking division alongside its retail lending operations, could yield benefits from increased investment banking activity as interest rates decline.

This contrasts with other banks, such as Lloyds and NatWest, which focus primarily on retail banking.

Despite the optimistic outlook for Barclays, Wright warns investors to consider its current valuation, as the stock trades at about 62% of its book value.

This valuation reflects positive investor sentiment regarding the bank’s potential to generate strong returns on equity.

However, Wright cautions that much of the anticipated growth from the investment banking sector may already be priced in.

Moreover, potential declines in lending margins could pose risks to the stock’s valuation, leading to a contraction if expectations are not met.

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The cryptocurrency market is facing sustained selling pressure, leading to a shift in overall sentiment towards a downtrend.

However, Solana (SOL), the fifth-largest cryptocurrency by market capitalization, is beating the trend as it gains attention from investors.

Despite the bearish environment in the crypto market, SOL prices jumped 5% over the last 24 hours.

This stability has piqued the interest of traders, who are closely monitoring its performance against major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

As Solana maintains its upward momentum, it stands out as a potential leader in the ongoing market dynamics.

Solana price movement

In a surprising twist, Solana has outpaced other major cryptocurrencies, including Bitcoin, Ethereum, and Binance Coin (BNB).

At the time of writing, SOL is trading at $173.5, marking a 5% increase in the past 24 hours.

This rise is notable against the backdrop of a 20% decline in trading volume, which suggests heightened caution among traders.

Source: CoinmarketCap

The dip in trading volume reflects broader market concerns, as investors remain wary amid uncertain market conditions.

Yet, Solana’s price action indicates strength, positioning it as a cryptocurrency to watch in the coming days.

From a technical standpoint, Solana’s recent price movements suggest a bullish outlook.

The cryptocurrency recently broke out of a tight consolidation range between $162 and $173.5, which had held for two days.

This breakout has set the stage for a potential 10% increase, with the next target being the $190 level.

SOL’s price remains above the 200 Exponential Moving Average (EMA) on the daily chart, which is considered a key indicator of an uptrend.

This trendline support suggests that SOL could continue to attract buying interest, especially if broader market conditions stabilize.

Short sellers retreat

The breakout in Solana’s price has triggered a wave of liquidations among short sellers.

Data shows that nearly $3.5 million worth of short positions have been liquidated, compared to $350,000 in bullish liquidations.

This disparity indicates that bearish sentiment is waning, with short sellers stepping back amid rising prices.

The liquidation of short positions often serves as a bullish signal, as it can prompt further price gains.

With the bears losing steam, Solana’s upward momentum may find further support in the coming trading sessions.

Bullish on-chain metrics support Solana’s rally

Solana’s bullish trend is further reinforced by favorable on-chain metrics.

Analysis from CoinGlass, an on-chain analytics platform, reveals that SOL’s Long/Short ratio currently stands at 1.02.

This ratio signals a predominance of long positions over short ones, indicating a positive market sentiment among traders.

Open interest for SOL has surged by 11%, reflecting a buildup of new positions following the recent price consolidation.

Traders often view rising open interest alongside a Long/Short ratio above 1 as a sign of growing confidence in the asset, which could drive further price appreciation.

With bullish technical and on-chain indicators aligning, Solana appears poised for further gains in the near term.

The cryptocurrency’s ability to hold above key support levels and attract new long positions could provide a foundation for a continued upward trend.

Broader market conditions and the overall direction of the cryptocurrency market will likely influence Solana’s trajectory.

As investors remain cautious amid the market downturn, SOL’s resilience could make it a compelling choice for those seeking opportunities during the current volatility.

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NatWest (NWG) share price has done well this year as the UK economy has remained more resilient than expected. It jumped to the year-to-date high of 365.2p in July, and then retreated to 303p as the Japanese yen carry trade unwind happened in August. It then bounced back and retested its highest level this year. 

NatWest has done well this year

The British economy has held steady this year and is doing better than most of its European peers. Data released last week showed that the country’s retail sales rebounded in September, while inflation continued falling.

The International Monetary Fund (IMF) decided to boost its economic forecast for this year. It expects the UK will grow by 1.1%, higher than the previous guidance of 0.7%. 

The agency, however, warned about the country’s substantial public debt as deficits continue rising. 

NatWest – and Lloyds Bank – are often seen as barometers of the UK economy because they are the biggest lenders. They also don’t have large operations outside the country, unlike other big banks like HSBC and Barclays.

NatWest does that through its ownership of its eponymous bank and other brands like Royal Bank of Scotland, Ulster, Coutts, Lombard, and Adam & Company. Its business has almost 20 million customers in the country. 

The next important catalyst for the stock will be its earnings, which will come out on Friday. These numbers will come two days after Lloyds Bank published strong results, which were better than estimates. Its profit jumped to £1.21 billion, while its return on tangible equity rose to 15.2%. 

Net interest income continued falling, moving to £9.6 billion, a drop from 8% in the same period last year. NII dropped because of the tightening of the spread between what it gives customers and what remains. 

NatWest earnings ahead

NatWest will publish its financial results on Friday. The previous numbers showed that its attributable profits rose to £2.09 billion in the first half of the year, while its return on tangible equity rose to 16.4%. 

Its net interest margin in the second quarter rose to 2.10%, while its net income came in at £987 million. 

Analysts expect that NatWest’s net interest income for the quarter will be £2.78 billion, higher than the £2.75 billion it made last quarter. They also expect that its profit for the period will be £1.059 billion. 

Looking ahead, analysts expect that NatWest’s net interest income will be £11.0 billion this year from £11.049 billion last year. It will then rise to £11.54 billion and £12.2 billion in the next two years. Its annual profit will hit £4.58 billion in 2026, higher than £4.7 billion last year. 

NatWest’s performance will be impacted by the next actions by the Bank of England (BoE). Like other big central banks, it has also started to cut interest rates this year. It slashed rates by 0.25% a few months ago and is expected to cut again in the next meeting. 

The BoE’s interest rates remain higher than other European countries, meaning that its NIM will be better than other European banks. 

The other potential catalyst for the stock will be the upcoming budget, in which Rachel Reeves is expected to announce measures to fill a large £22 billion gap. In her October 30th budget, Reeves is considering changing the definition of debt, a move that will help her cut some taxes.

In the past, as we saw during Lizz Truss era, the budget reading can lead to more volatility in the UK stock market. 

NatWest share price forecast

NWG chart by TradingView

The daily chart shows that the NWG share price has been in a strong bull run in the past few months. It has risen from a low of 157p in October last year to 365p. 

The stock has remained above the ascending trendline that connects the lowest swing since June 14. It has remained above the 50-day and 100-day Exponential Moving Averages (EMA), meaning that bulls are in control for now.

NatWest has also remained above the ascending trendline that connects the lowest swing since June 14. It has also moved above the 23.6% Fibonacci Retracement point.

However, there are signs that it has formed a double-top pattern, a popular reversal sign in the market. Therefore, the outlook for the stock is neutral as long as it remains below the resistance point at $35.

A break above that level will point to more gains, with the next point to watch being at 400p. The alternative scenario is where the stock retreats and retests the 50-day moving average point at 343p.

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At the time of writing, Shiba Inu (SHIB) has experienced significant volatility in its burn rate, with data from Shibburn revealing a dramatic -100.00% decline over the last 24 hours, indicating no SHIB tokens were burned during this period.

Source: Shibburn

Despite this sharp drop, the broader trend shows a decline in the weekly burn figures, with 58,389,212 SHIB burned this week—an 81.73% drop from the 320,186,507 SHIB burned the previous week.

This inconsistency in burn rates raises questions about the sustainability of ShibArmy’s long-term strategy to reduce the circulating supply of SHIB.

SHIB burn rate plunge shows challenges

The ShibArmy has remained resolute in its goal of reducing SHIB’s circulating supply through burning. This week’s burn rate initially surged, registering an 880.1% increase in the early days.

The momentum quickly waned, leading to a significant decrease by the end of the week, including the latest -100.00% drop.

While the community’s efforts are evident, a more widespread and sustained burning strategy may be necessary to achieve a meaningful reduction in supply.

The fluctuations in SHIB’s burn rate coincide with a significant rise in transaction activity on Shibarium, Shiba Inu’s Layer 2 scaling solution.

According to Shibariumscan, daily transactions jumped to an impressive 3.24 million on October 24th.

This surge in platform activity could potentially contribute to future SHIB burns, as Shibarium transactions include a burn mechanism.

Could Shibarium’s growth stabilize SHIB burn rates?

Shibarium’s increased activity presents an opportunity for a more stable and consistent SHIB burn rate, given its mechanism that integrates burns into each transaction.

If the platform’s usage continues to grow, it could help drive more regular and substantial SHIB burns, potentially offsetting the recent drop in weekly burns.

The link between Shibarium’s growth and SHIB’s supply reduction could play a crucial role in shaping the token’s future dynamics.

The unpredictable nature of SHIB’s burn rate makes it challenging to gauge its immediate effect on the token’s price.

While ShibArmy’s dedication to burning SHIB is clear, the lack of consistent burn rates could limit the potential impact of reducing the overall supply and, subsequently, driving price appreciation.

A more uniform burn rate would likely be necessary to produce a noticeable effect on the market value of SHIB.

As Shiba Inu navigates these volatile burn patterns, the community continues to explore ways to enhance SHIB’s utility and long-term value.

While Shibarium’s potential to support burn rates offers a promising avenue, it remains to be seen if it can deliver the consistency needed to influence SHIB’s price trajectory positively.

For now, the ShibArmy is focused on maintaining the burn effort, hoping for a longer-term shift that could support a rise in the token’s market performance.

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Bitcoin’s designation as a “Trump trade” is beginning to feel the pressure from broader global market shifts, spurred by the possibility of Donald Trump’s return to the White House.

With the Republican nominee leading Vice President Kamala Harris in prediction markets, bond yields, and the US dollar have jumped recently.

According to a Bloomberg report, investors are adjusting their bets, pulling back on expectations of looser monetary policy, as Trump’s pro-growth agenda could fuel an already strong US economy if he secures victory in the November 5 election.

This market shift has caused Bitcoin and stocks to fluctuate, as financial conditions tighten in response.

Bitcoin is facing its first weekly decline in three weeks. Although Trump has historically embraced the digital-asset industry, questions remain as to whether his broader economic agenda will negatively impact the cryptocurrency.

“Absolutely, yes, the selloff in stocks, higher US dollar, and higher yields all equal a tightening in financial conditions,” said Tony Sycamore, a market analyst at IG Australia Pty in the report.

He explained that the rapid pace of the tightening is creating pressure on risk assets like crypto.

Bitcoin’s performance under Trump remains uncertain

Bitcoin saw a 1% rise on Thursday, reaching $67,300, but its weekly decline still hovers around 2%.

Despite the recent dip, Bitcoin has surged by 60% this year, with a record high of $73,798 in March.

Demand for US spot bitcoin exchange-traded funds (ETFs) has been a key driver of the asset’s rally, but the market now faces uncertainty as financial conditions tighten.

Trump, in contrast to President Biden’s regulatory stance, has vowed to make the US the “crypto capital of the planet,” appealing to crypto enthusiasts.

Democratic candidate Harris has taken a more cautious approach, advocating for a regulatory framework for the sector.

These contrasting positions highlight the differing impacts each candidate could have on the industry.

Election result to influence Bitcoin’s future?

The race between Trump and Harris is statistically tied in key swing states, according to a Bloomberg News/Morning Consult poll.

The tight margins indicate that final campaigning efforts could play a significant role in deciding the winner.

If Trump wins, bond yields may rise further, negatively impacting risk assets like Bitcoin.

Caroline Mauron, co-founder of Orbit Markets, noted, “The expected regulatory softening of a Trump administration toward the crypto industry should still be the more important factor,” despite potential market tightening.

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