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Market review: October 12, 2016

Fang submitted 2016-10-18 09:11:06

Market review:

China stocks declined as investors taking profit after two days of rally.


Research Notes:

SHA fell about 0.22% with money outflowed from Software Development, Internet and Complex Material sectors the most.Sichuan Guodong Construction Co.(600321.sh),a manufacturer of building boards, rallied to limit-up as the controlling shareholders will transfer majority shares for a restructure plan.

DXY overnight rallied to new high with investors anticipated shrink of the scale of QE by both ECB and Fed by the end of the year. CNYUSD fell to the lowest level since 2010 September with investors worried that both the slowdown of the economy growth and gov’s intention to ease further could depress the value of Yuan further. Coke, Manganese alloy and hot-coiled steel roll are the leaders of the commodity market, for investors pricing the shortage of coal which supported a series of industrial materials, from coke to rebar. Agriculture products remained weak as US harvest went on smoothly after the hurricane. Investors should stay cautious as more China macro data to be released by the end of the week, as well as some speech by Fed officials. The recent weakness of RMB is also a warning sign that investors are getting conservative and it’s proper to reduce some exposure when SHA ‘s above 3060.

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