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Market review: November 24, 2016

Fang submitted 2016-11-25 21:45:47

Market review:

China stocks stayed firm as PBOC trying to ease the liquidity tightness with more rev-repo operations.

Research Notes:

SHA climbed about 0.02% with money flowed into Banking, Non-Ferrous Metal and Finance sectors the most. Xinjiang Urban Construction (Group) Co.(655545) rallied to limit-up, for the fifth day in a row, as investors expected it could restructure further with gov plan.

DXY overnight breached the 101.5 level with several better than expected macro data, including Durable Goods Order and Fed Minutes confirmed that the Dec hike is almost certain. CNYUSD continued its fall to 1:7 with gov showed no concern about a weakening currency, especially compared to other DM countries, CNY stayed relatively firm in the scale of one year. In commodity market, copper, zinc and lead led the rally, boosted by the weak Yuan. And it seems that investors are betting for more construction plans to keep the economy growing in Q1 2017 which could increase the demand for raw materials. Investors could ride the bull trend with positions overweighed in new energy, SOE reform and Non-Ferrous Metal Mining sectors with 3300 SHA within reach.

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