CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

What will the election mean for the Barclays share price?

The UK General Election is a week away, but how will it impact the Barclays share price?

The UK General Election will take place on December 12, with analysts from Berenberg telling investors that Barclays could struggle more than domestically focused peers like Lloyds and Royal Bank of Scotland in the wake of the result next week.

However, the Hamburg-based investment bank also said that Barclays will see short-term gains from its investment banking division following the election, with the unit responsible for an 8% growth in income to £5.5 billion in its third quarter.

Looking to trade Barclays and other bank stocks? Open a live or demo account with IG.

Analysts upbeat about Barclays’ share price

Analysts at RBC, Deutsche Bank, and HSBC are all positive about the stock’s price trajectory, with them issuing target prices of 185p, 208p and 210p respectively.

Based on Barclays share price closing at 167p on Thursday, the three banks believe the stock has a potential upside of 10% to 25%.

You can go long or short Barclays with IG using derivatives like CFDs.

UK banking sector headwinds likely to persist in 2020

Speaking more broadly about the sector, Berenberg analysts urged investors to exercise a degree of caution, with the headwinds facing UK banks this year likely to continue into 2020.

‘We believe headwinds from low interest rates and structural challenges facing investment banks remain poorly reflected in consensus and that cost inflation from the necessary investment in compliance and risk controls may be material,’ analysts said in the note.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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