Market review:

China stocks generally stayed stable with SHA climbed about 0.09%.

Research Notes:

Money flowed into Construction Development, Finance and Gardening & Landscape sectors the most. Cinda Real Estate Co.(600657.sh), a real estate developer in Beijing, rallied to limit-up as it cooperated several banks to take a leading position in handling asset backed securities, which could increase its profit perspective.

DXY took the 98 high as Fed minutes showed that there’s consensus for Fed officials to raise the rate in December. CNYUSD declined further to 6.73 level and many investors are looking at 7 if both Fed and ECB take the taper path. In commodity market, coke, coal and manganese alloy took the lead, as speculators bet on the coal production could not recover fast enough to meet the winter demand.Rice, cotton and oil seed meals are among the weakest, hurt by a bearish report from USDA overnight. The recent improvement of relationship between China and Philippine had attracted money to bet on faster development of South China Sea sector. And as winter approaching, we still believed that new energy and environment protection sectors could be the bright spots as smog return with the heating season. Besides those, investors should reduce risk exposure of other sectors, as SHA could face increasing pressure in the range of 3050 to 3100.

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