Daily Market Roundup: Difficult for Fed to please the market; Indices and Stock outlook

Nick Batsford, CEO of Tip TV, was joined by Zak Mir, technical analyst for Zak’s Traders Café, and Mike Ingram, Strategist for BGC Partners, when he opened the Tip TV Finance Show to discuss the assumed Federal Reserve interest rate hike today, as well as Indices and Stock Outlook and the outlook for UK rates.

Fed hike a go for this evening

Ingram outlined that the market is certain of a 25bps rate hike from the Federal Reserve, but he believed the question is really over the flight plan for 2016 in terms of hike trajectory. He continued that it will be difficult for the Fed to please the market. Mir added that he can’t see a negative scenario after the Fed meeting tonight for stocks. In terms of FX Street, Batsford commented on the slide they provided which shows the consequences of certain degrees of rate hikes from the US central bank.

UK rates to remain low

Batsford highlighted Elliott, who noted that showing zero inclination to follow the Fed’s probable rate rise today, and stressing that the current UK interest rate scenario as being ‘low for long’, Mr Carney has back-pedalled on his forward guidance that the Bank Rate would start to get back to normal at the end of this year. Defending the concept he added, ‘did I know that oil was going to fall 12% in the last ten days? No, I didn’t know that. But I will continue to try to frame as accurately as possible what’s guiding my decision process. You don’t want to know everything that’s going on in my mind, I can assure you’.

Indices and Stocks Outlook

Mir believed that the FTSE 100 could head back to 6314 in a Christmas rally after recovering above 6000.

When concerning Supergroup, he noted the flush out down to £14, and Mir expressed the view that this stock could head back up to £18 at the top of the channel.

Watch the video for more technical analysis on indices and stocks including the DAX, S&P 500, NASDAQ, DC, ASOS, CHA , INSP, IGAS, BPTY, PSON and LMI.

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