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Market review: July 13, 2016

Fang submitted 2016-07-13 15:48:32

Market Review:

China stocks stayed firm with SHA climbed about 0.37%.

Research Notes:

Money flowed into Entertainment, Communication Service and Internet sectors the most. Guangxi Hechi Chemical Co.(000953.sh), a fertilizer producer, rallied to limit-up for investors believed it will continue a restructure plan which failed previously.

Though the trade data of China to be released today ‘s expected to fall on month, investors showed optimism on several talks of Fed governors which would hint further delay of rate-hike. CNYUSD consolidated around 6.69 but investors considered further easing policy by China Gov could pressure RMB to 6.8~6.9 region. In commodity market, rapeseed meal and soybean meal rallied over 4% as hot and dry weather had been predicted for the next 1~2 weeks and supported soybean complex in CME. Copper and iron ore also rose on the recent weakness of RMB and hope of stimulus. Though we still favor the gold and non-ferrous metal sectors, some profit should be taken when SHA hit 3100, which could happen in the next 1~2 weeks, before investors concern about FOMC in July.


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