Nick Batsford, CEO of Tip TV, and Richard Hunter, Head of Equities at Hargreaves Lansdown (LONDON:HRGV), opened the Tip TV Finance show by discussing the major headlines involving the S&P 500, China and broker recommendations.
S&P 500 and FTSE 100 in ranges
Hunter noted that firms within the S&P 500 achieved fairly good Q2 earnings, with a marginal increase in profits, but also a fall of around 3.4% in revenue. He continued by expressing the view that the market needs a positive catalyst, otherwise there is a cautious outlook over the S&P 500.
When concerning the FTSE 100, Hunter highlighted that it was stuck in a trading range, with it not moving up or down more than 10 points in any given session. Commodities and oil remain a drag, and Batsford noted industrial metals down 52%.
China growth half of the predicted 7%
Hunter commented on the importance of China to everything equity related, whilst Batsford outlined that in China, exports fell 8.3%, imports were down 8.1%, meanwhile, consumer prices increased around 1.6%. Hunter then questioned China’s market, highlighting the artificially high holding of share prices, government intervention and falling demand leading to his view that China, being the second largest economy, will have a global impact.