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Market review: September 1, 2016

Fang submitted 2016-09-01 19:51:04

Market review:

China stocks declined with SHA fell about 0.72%, the biggest drop in more than one week. Official PMI and Caixin PMI showed the divergence and it made investors doubt the strength of the recovery of China economy in August.


Research Notes:

Money outflowed from Software Development, Telecommunication and Electronics Equipment sectors the most.Jiangsu Kuangshun Photosensitivity New-Material Co (300537.sz). rallied to limit-up as investors chasing this newly IPO firm, for its competiveness in Photosensitivity material business. DXY held the ground above 96 and it suppressed most risky assets. CNYUSD dropped to 6.68 level, the lowest since July 25th. In commodity market, lead, silicon manganese and zinc led the rally , as the cut of supply can’t satisfy the stronger than expected demand of China. Though FOMC in September ‘s still weeks away, but non-farm number this week will keep investors nervous about more indicators to trigger rate hike as early as September 21st.Investors should stay light in exposure before this event, and in our opinion range between 3050 and 3100 should be reasonable range to close some postions for risk aversion.


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