Barclays' shares made a recovery on Tuesday morning, following a difficult week marred by the impact of President Trump's aggressive tariff measures.
The FTSE 100 bank had struggled in the aftermath of the trade dispute, as reported by .
The lender experienced a substantial decline of nearly ten per cent after China retaliated with its own set of tariffs against the US.
Barclays was one of the major banks, alongside HSBC and Standard Chartered, leading declines amongst top fallers in the blue-chip index as markets floundered.
According to Russ Mould, investment director at AJ Bell, "In Barclays' case, its investment bank is heavily geared into how the financial markets performed."
He added, "Tumbling, or volatile, markets are likely to deter merger and acquisition activity and also new market floats, both areas where there are fat fees to be made."
Despite the previous turbulence, Barclays witnessed a near three per cent uptick as the FTSE 100 stabilised on Tuesday, while HSBC and Standard Chartered continued to wrestle with losses.
John Cronin, founder of SeaPoint insights, highlighted that, "Barclays has seen more significant selling pressure than º£½ÇÊÓƵ domestic-focused peer banks in recent days."
Meanwhile, Lloyds and Natwest, which focus predominantly on domestic markets, have managed to sidestep steep losses. Lloyds saw a rise of over two per cent and Natwest edged up by one per cent during early trading.
"This is a function of its reliance on cyclical Investment Banking revenues as well as its significant exposure to the US consumer by virtue of its US cards business."
Mould commented that while Barclays and its counterparts are considered "geared plays on economies and financial markets on the way down, they are likely to be seen as geared plays on them if they recover.
"After its fall, Barclays trades on just 0.7 times historic book value and it is the cheapest of the Big Five FTSE 100 banks on this measure," he continued.
"If contrarian investors start to sniff around for some value amid the wreckage, then those are the sort of multiples which may catch their eye."
