Nick Batsford, CEO of Tip TV, was alongside Richard Hunter, Head of Equities for Hargreaves Lansdown (L:HRGV), to open the Tip TV Finance Show on the 2nd of November 2015 to discuss the US market and Fed expectations, plus China and its recent manufacturing data.
US ISM manufacturing under focus
Batsford highlighted FX Street, who outlined that the headline figure coming in at below 50.00 could be bearish for the USD, whilst an upbeat figure could cap losses and trigger a USD rally ahead of the non-farm payroll number. They continued that the main focus is still likely to be the employment sub index. Hunter commented that the US market has had its best October since 2011, despite the DIJA falling 0.5% on Friday last week. He added that the Fed has now very much factored in potential for a December interest rate hike following the FOMC meeting. Hunter finished that he US earnings season is very pleasing on the tech side, and has resulted in the reporting overall in the US being around as expected.
Sentiment for China starting to harden?
Hunter noted that China is in the process of moving towards a consumer based economy, and that the data released may only be short-term noise within a bigger reshuffle. Batsford outlined Elliott, who commented that Chinese data released on Sunday showed that October Purchasing managers are slightly less optimistic than hoped. She continued that non-manufacturing PMI dropped to 53.1, its lowest in over 3 years, while manufacturing printed 49.8, a third consecutive reading of below 50 in what is admittedly a shrinking sector of the economy. Meanwhile, October’s Caixin manufacturing PMI released today rose to 88.3 from 47.2.