The HSBC share price is trading lower this Wednesday as the New York stock market begins trading for the second day following Monday’s Labor Day holiday. The decline in the HSBC share price follows that of its parent stock on the Hang Seng index, which fell 2.63% on Wednesday as the Chinese lockdowns delivered a sucker punch to the markets.
The HSBC share price in the US-listed stock is now recovering from session lows after the bank got a reprieve from a US Appeals Court that held it not liable for the death of two US contractors killed in a 2009 suicide bombing in Afghanistan. The families of the slain individuals sued HSBC for dealing with Bank Melli and Bank Saderat, two Iranian state-controlled financial institutions, violating federal anti-terrorism laws. The court said there was no convincing evidence to show that the dealings directly aided and abetted terrorism or was it aware that it had any roles via its dealings with these banks.
The ruling is also coming off the back of the end of a 5-year enforcement action on the bank by the US Federal Reserve after the bank satisfied the strict anti-money laundering controls. When the Fed first took enforcement action, HSBC was forced to pay $1.92 billion in fines to US authorities in 2017.
The bounce on the 29.97 support preserves the integrity of this price level and allows the bulls to aim for the 30.45 price mark. A break above this level makes 31.10 available, being the site of a prior high of 11 May and 31 August 2022. 31.94 comes next if the bulls uncap 30.45, with 32.45 (25 April high and 2 August low) and 33.76 (27 May and 1 August high), forming the new targets to the north.
On the other hand, the breakdown of 29.97 makes room for a push toward 28.66 (25 March/23 April 2021 double bottom). If the bulls fail to defend this pivot, additional downside targets come in at 27.32 (2 August 2021 low) and 26.09, site of a former low of 29 January and 1 October 2021.
This post was last modified on %s = human-readable time difference 17:47