Nick Batsford, CEO of Tip TV, was alongside Zak Mir, technical analyst for ShareProphets.com, when he opened the Tip TV Finance Show on the 13th October 2015 to discuss the data release from China, the prospects of the ECB extending QE, as well as a stock outlook and focus on the S&P 500.
Busier day following Monday’s Columbus Day Holiday
Batsford highlighted Elliott, who noted that the data this morning form China show imports falling 1.1% in September while exports slumped by 17.7%, one of the year’s biggest falls. Also out this morning is the final reading for German September consumer prices which, on an EU harmonised basis, dropped 0.3% on the month and 0.2% annualised; wholesale prices in the country also fell, by 0.6% and 1.8% respectively.
50-50 on more QE
Batsford outlined that the Latest Reuters poll has is split down the middle for QE past September 2016 with 40% of the pollsters seeing the ECB increasing monthly purchases over the next six months.
Treasury yields drop after China data, bearish break in USD/JPY
Batsford commented on FX Street, who believed that with Chinese imports falling 17% and exports 1.1%, that worries about domestic demand in China would increase. This corresponds to demand for safe haven assets increasing thus leading to a possible spike in USD/JPY. Mir added that we have had our rest from China, but there is now plenty of data to come out of China to re-affirm our concerns.
Stock Outlook
Mir outlined Teathers which needs to clear the 5p level before opening up a new target of 8p.
In terms of Glencore, he noted the easy trade would be down to 98p whilst it remains in a wide range.
Mir continued to Lloyds, where he commented that its shares remain very strong with key support at 72p. He likened it to Royal Mail, which has also seen government selling but yet remains indescribably strong.
Watch the video to see more on RWS, UK Oil and Gas, Tesco, Rolls-Royce and more.
S&P 500 needs a break soon
Batsford noted that the S&P 500 prodded its spike high from September on Friday. He added that a break of the 2020.86 level really needs to occur soon to avoid the extension of the 1900 to 2000 range.
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