The NatWest share price rose by more than 1.70% on Wednesday after the latest strong UK inflation data. The stock rose to a high of $204, becoming the best performing FTSE 100 stock. It is followed by Lloyds and Barclays. HSBC and Standard Chartered share prices have also done well.
NatWest news. The NWG share price bounced back on Wednesday after Moody’s upgraded the company from Baa2 to Baa1. This happened a day after the Bank of England removed restrictions on banks paying dividends and returning funds through buybacks. Therefore, analysts expect that NatWest will boost its returns in the near term.
The NatWest stock also bounced back after the latest UK inflation data. The numbers showed that the country’s headline CPI increased to 2.5% in June. This is substantially higher than the BOE estimate of 2.0%. Therefore, investors expect that the BOE will likely turn hawkish in the upcoming meeting. Banks tend to benefit when interest rates rise.
Further, the NatWest share price is rising as the bank earning season continues. Goldman Sachs and JP Morgan have already published relatively strong results, helped by deal-making. While these results are of American banks, there is a possibility that they will have a positive impact on global banks. NatWest will publish its half-year results on July 30th.
The daily chart shows that the NWG stock has been in a bullish momentum recently. The stock has managed to rise by 123% from the lowest level in 2020. This makes it one of the best performing banking stocks in the UK. The stock is also above the 25-day and 50-day moving averages. It is also between the ascending channel shown in blue.
Therefore, the stock will likely keep rising as bulls target the next key resistance level at 220p. However, a drop below 193p will invalidate the bullish view.
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