Rbs

sexytimmy

Newbie
7 0
Following the bad news that RBS looks set to make losses of £8bn on 28/1/14, I went short on and the share price went up 3.52%.

During the same period, HSBC (HASBA) bank was down 0.2% but with no such bad news.

Can anybody explain why that was please?

thanks.
 

peakoil

Well-known member
257 38
In a sentence - it's all about market expectation, as opposed to your (likely more rational) interpretation of how things should be.
 
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counter_violent

Legendary member
10,462 2,756
Following the bad news that RBS looks set to make losses of £8bn on 28/1/14, I went short on and the share price went up 3.52%.

During the same period, HSBC (HASBA) bank was down 0.2% but with no such bad news.

Can anybody explain why that was please?

thanks.
It's possible the pre- news RBS price had overestimated the likely loss figure of £8bn to say, £9bn. So when the actual figures came out, they were better than expected.

If you don't already have one, it's a good idea to have a news calendar handy.
http://www.forexfactory.com/calendar.php
 
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VielGeld

Experienced member
1,421 179
This messed me up at first, too. "How can it go up on bad news?"

Well, as the others pointed out, it's all about market expectations. If the market expected worse numbers than those posted, the price will go up, and vice-versa.

It actually makes sense when you think of it that way.
 

sexytimmy

Newbie
7 0
thanks very much for your replies...
 
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