China fundamental:
China stocks rallied on the start of US presidential election.
Research Notes:
SHA climbed about 0.46% with money flowed into Entertainment, Banking and Electronic Equipment sectors the most. Tianjin Faw Xiali Automobile Co. (000927) rallied to limit-up as it released a plan to transfer some shares to its holding company Faw as part of a restructure plan, as the company suffered from heavy loss fro several years and some shakeup plan became necessary.
DXY stayed around 97.5 level with investors waiting for the result of US election yet CNYUSD weakened as data showed capital outflow number is higher than expectation for October. In commodity market, rubber, nickel and tin led the rally as recent flood disrupted the production of these raw materials in the Southeastern Asia as the monsoon season brought too much precipitation. Coal futures slumped the most for investors taking profit from recent rally. As US election could end with Hilary winning out, the uncertainty could be removed and we expected risky assets be boosted by this rebound of risk appetite globally. And we maintained our pick for new energy, coal mining and environment protection sectors to outperform the general market, even though SHA got some momentum to challenge 3200 threshold in the last 2 months of the year.
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