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Market review: November 10, 2016

Fang submitted 2016-11-16 18:32:24

Market review:

China stocks rallied on the risk-on movement of the global market with SHA rose about 1.37%.


Research notes:

Money flowed into Finance, Construction and Non-Ferrous Metal Mining sectors the most. Guizhou Changzheng Tiancheng Holding Co.(600112),a mining equipment producer, rallied to limit-up as investors rushed into commodity market and pushed nickel and copper futures to limit-up.

DXY reclaimed the 98.6 level in a drastic move as investors considered Trump uncertainty is not as big as they used to believe. CNYUSD hit a new low of the past 6 years with speculation that China could resort to weak currency policy to counter the trade-tension which may cause by Trump policy. In commodity market iron ore, nickel and copper jumped to limit-up as a weak CNY supported these commodities that China relied on import. The tumble of CNY actually supported the sectors we recommended, such as energy and precious metal sectors. Though it’s premature to believe that Trump would not create further shock to the financial market, the current uptrend of risk asset could last into the end of the month, before investors pricing for a Fed hike. SHA 3200 is again within the reach and investors can take more profit out at that level.


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