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Westpac up on outperform rating

Westpac’s (ASX: WBC) recovery has continued today, with the bank’s shares up 1.9% after Macquarie upgraded its rating to outperform.

After a strong 12 months of trading, the bank fell in value by 22% as investors took their profits, sending the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) plunging. Since the beginning of the month however, the company has recovered 11% as the market regains its confidence.

Contributing to that confidence has been the market’s anticipation of a reduction in political uncertainty, with the Liberal Party now considered by some to hold a 75% chance of taking office after the federal election.

Whilst it remains unknown when the election date will be announced, Shawn Hickman, a senior client advisor at Shaw Stockbroking, suggested that maybe “people don’t want to be caught short if the Liberals get in.”

Furthermore, with the market anticipating a rate cut in August, it is likely that higher earnings could also be expected for the banks.

In mid-afternoon trading, ANZ (ASX: ANZ), NAB (ASX: NAB) and Commonwealth Bank (ASX: CBA) are up between 0.3% and 1.4%.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.

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