Nick Batsford, CEO of Tip TV, was joined by Manoj Ladwa, Head of Trading at TJM Partners this morning to take a look at the trending topics in the market.
S&P 500 consolidating?
Looking at the S&P 500, Batsford noted that the index is consolidating its reassertion efforts, and momentum wise, the 14 RSI is taking a healthy breather around neutral.
Fed rate hike to pressure equities
Ladwa added that he feels it could break through its 20D MA after a prolonged period of testing. He is looking for a number of constituents to go push higher, but suspects that with focus on a rate hike intensifying, so does the prospects of a break lower.
HSBC Holdings PLC (LONDON:HSBA) to leave South America
With HSBC’s pre-tax profits being up £1 billion, after noting the neutral rating given to HSBC by Nomura, Ladwa notes that HSBC plans to offload its Brazilian business which is their principle arm in South America. He adds that this comes as a result of the slowdown in commodities and changing currency dynamics, and sees the bank valuing this arm of the business at around $5.2 billion.