Today's stock and macro update: Rising Fed rate hike bets signalling a return to economic normality

Nick Batsford, CEO of Tip TV, was joined by Richard Hunter, Head of Equities for Hargreaves Lansdown, on the Tip TV Finance Show to discuss the outstanding NFP numbers and Fed rate hike chances, as well as an outlook on China.

Stonking NFP boost Fed hike bets

Hunter outlined that non-farm payroll numbers released on Friday were well above consensus, and they resulted in the DIJA finishing up 0.1% and Fed rate hike bets for December increasing from 58% to 70%. He continued that this rise in bets for a US interest rate hike is a reflection on the market that we are on the path back towards economic normality.

China positive even when ignoring the market

Batsford highlighted Elliott, who noted that data released on Sunday showed Chinese imports slumped by 18.8% in the year to October whilst exports dropped by just 6.9%, taking the trade surplus to a record $61.6b in the month. The trade balance this year has held very roughly between $40b and $60b, a clear step higher than it was in the previous 3 years. Hunter added that even if China GDP was half the number stated, the growth would still be remarkable.

Tags: Fed, Federal Reserve, NFP, DIJA, interest rates, rate hike, US, China, imports, exports, trade surplus, trade balance, GDP