Nick Batsford, CEO of Tip TV, was joined by Richard Hunter, Head of Equities for Hargreaves Lansdown (L:HRGV), on the Tip TV Finance Show to discuss the US and UK reporting seasons, the VIX and the ECB meeting yesterday.
Plenty to report still in the UK and US earnings season
Hunter noted that we are currently bang in the middle of both the UK and US reporting season, and he outlined that there are still many companies to report. He focused on the earnings from McDonald’s which was much anticipated, and their results boosted shares up 8% yesterday. Hunter concluded that the UK has many exciting firms releasing earnings next week, with many expected to bring positive news.
No action from the ECB
Batsford highlighted Elliott, who commented that at yesterday’s press conference following the ECB meeting where rates were once again left unchanged despite discussions as to which other tools they might use if needed, they noted that inflation was well below their 2% target. Because of this ‘the degree of monetary policy accommodation will need to be re-examined at our December meeting’. He also urged governments to do more to stimulate their economies saying, ‘monetary policy should not be the only game in town’. Hunter added that the market have taken that Draghi has not closed any doors and the ECB’s generally dovish comments very well.
October not proving as expected
Hunter finished on the VIX index, which he believed to be down below its historical average. He continued and expressed that this could be because earnings data is easy to understand and thus markets haven’t responded with the volatility seen over the last few month with central bank statements lacking clarity, such as the Federal Reserve.