Barclays’ share price (BARC) is down over 2.50%, making it one of the worst-performing stocks in London today. It has also underperformed the FTSE 100, which has fallen by more than 2%.

Other UK banks are also experiencing losses. Lloyds’ share price has dropped by 2.95%, while HSBC has declined by 0.90%. Similarly, NatWest and Standard Chartered have fallen by 1.90% and 0.25%, respectively.

The decline in Barclays and other UK banks is largely due to concerns over the rising Covid-19 cases in the country. Yesterday, the UK confirmed over 16,000 new cases, prompting the government to implement circuit breaker measures. Health experts believe the situation in the UK and other European countries could worsen as colder weather approaches.

Banks are particularly vulnerable to the risks posed by the pandemic for two reasons. First, many customers may lose their jobs and default on financial obligations. Second, the Bank of England (BOE) is likely to introduce further stimulus measures, which could include negative interest rates. This week, the BOE asked banks to prepare for such a scenario.

Barclays’ share price is also affected by ongoing earnings reports from US banks, which have been mixed. JP Morgan, Citigroup, and Goldman Sachs reported strong earnings, driven by their trading divisions. In contrast, Bank of America (BOFA) and Wells Fargo delivered weaker results.

A common trend among banks is reduced allocations for loss provisions. Barclays has already set aside more than £3.7 billion this year for bad credit provisions, and it’s likely that the bank will set aside less in the third quarter.

On the positive side, Barclays is expected to report strong results from its trading division, similar to Goldman Sachs. Barclays has one of the top trading divisions among major banks and will release its earnings on October 23rd.

Analysts have mixed views on Barclays’ share price. RBC Capital Markets recently suggested the stock could rise to 111p, a premium from the current 98p. Meanwhile, Jefferies is the most bullish, forecasting a potential rise to 233p.

This year, BARC shares have fallen by more than 44%, a slightly better performance compared to Lloyds and NatWest (formerly RBS). On the four-hour chart, Barclays’ stock has dropped from a weekly high of 108p to the current 98p, moving below the 15-day and 25-day exponential moving averages.

Additionally, the RSI has dropped from an overbought level of 75 to the current 50, suggesting bears have taken control. The shares are likely to continue falling toward 95p unless the price moves above the two moving averages at 102p, which would invalidate this bearish outlook.