Today's stock and macro update: VW avoiding killer blow, Standard Chartered leading banking sector down?

Nick Batsford, CEO of Tip TV, was joined by Zak Mir, technical analyst for Zak’s Traders Café, and Alan Green, CEO of Brand Communications, on the Tip TV Finance Show to discuss central bank policy including views on the ECB, as well as GBP/AUD, Volkswagen, and an index and stock outlook.

GBP/AUD forming head and shoulder pattern?

Batsford noted FX Street, who outlined that there is an increased possibility of a head and shoulder pattern in the GBP/AUD after the RBA held rates unchanged and Cable failed to take out the 1.55 level from 14th October until now.

Volkswagen platform used by many manufacturers

Mir noted that VW has not been struck by a killer blow, meanwhile many other manufacturers which use Volkswagen’s platform are trying to bring their affairs into order following the revealing of the emissions scandal.

Hedge fund managers told ECB would front-load QE

Batsford continued to Elliott, who commented that in May ECB executive board member Benoit Coeure told hedge fund managers they would be front-loading QE – data that was not made public until yesterday. The FT has seen diaries showing that he had also met senior figures as UBS (together with Yves Mersch) the day before the MPC meeting, and from BNP Paribas on the very day they cut interest rates; he is not alone, Vitor Constancio and Peter Praet having met hedge fund manages during the Greek crisis. In contrast the BoE’s MPC is quarantined for the week before rate-setting meetings.

Banking stocks stabilising?

Green expressed that the banking sector has taken a real beating over the last week, and whist other banking stocks are beginning to stabilise, Standard Chartered will provide another clout to the sector following its rights issue ordered today.

Index and Stock Outlook

Mir noted the DAX which recently bounced off around the 9400 mark, and he added that no Fed rate hike would lead to further rise in the DAX.

He continued on to Lloyds, where he highlighted that people are buying the UK government stake when they dump them on the market, and Mir believed 72p to go long and 78p to go short were how to trade this stock.

In terms of the S&P 500, he commented that the Index has recently experienced a W-shape reversal, and is now heading towards the top of the channel at 2150.

Watch the video to see more analysis on HSBC, BARC, FTSE 100, ARG, Direct Line and Quindell.

Tags: GBPAUD, GBPUSD, Cable, RBA, interest rates, rate hike, rate cut, VW, Volkswagen, emissions scandal, ECB, QE, MPC meeting, BoE, hedge fund managers, DAX, LLOY, SP500, HSBC, BARC, FTSE 100, ARG, Direct Line, Quindell, KGF, STAN, Banking