Taylor Wimpey Shares Up 1.5% As Stock Markets Test All-Time Highs
Today the stock markets made a strong bullish start, with Asian, European, and US futures all reaching new highs for the day as the PBOC announced an RRR cut for February. Taylor Wimpey shares also received a boost today, however, they are coming from a sizeable retreat that took place yesterday as risk sentiment turned negative, while the USD surged higher.
Today we are seeing the opposite after the People’s Bank of China announced early in the Asian session that they will carry out a 50 BOC reduction drop to the reserve requirement ratio (RRR) which would bring it to 6.90% from 7.40%. This is a large cut, considering that last year China implemented two RRR cuts worth 50 bps for both, or 25 bps each and will throw back into the Chinese markets 1 trillion Yuan.
Taylor Wimpey Shares H4 Chart – The 100 SMA Held As Support
Taylor Wimpey plc (LON:TW.) made quite a bullish move from October until late December, gaining around 50% in value as share prices surged from around $100 to $150. It may not have the highest market capitalization, but it has outperformed other UK stocks, leading the LSE gainers with a pretty large price increase since October.
Even during the pullback in UK stock markets in particular for most of this month, Taylor Wimpey shares have been stabilizing between $140 and $150, with the 100 SM (green) acting as support on the H4 chart. Today’s move is still outperforming other stocks, with the S&P 500 futures are up 0.8%, while Nasdaq futures are up 1%. Taylor Wimpey shares are up by 1.5% from the day’s lows. Tech stocks are feeling the positive impact of the PBOC move in that regard, which has turned the broader risk sentiment in favour of the futures market.
Late last year, the financial tables of the company showed that Taylor Wimpey’s sales rates for the second-half of 2023 held up quite well, despite the fact that the fast rate hikes from the Bank of England and other central banks continue to be a drag for purchasers, making mortgage affordability difficult which has been hurting the demand for homebuyers. Nonetheless, the Taylor Wimpey shares remain close to record highs and I’m sure they will increase above $150 as the Bank of England announces the start of rate cuts soon, which would be a boost for the housing markets, including Taylor Wimpey later this year and in 2025.
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