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Market review: December 22, 2016

Fang submitted 2016-12-22 16:01:36

Market review:
China stocks stayed firm with SHA hanging around 3139.

Research Notes:

The index climbed about 0.07% with money flowed into Automobile Production, Motorbike Production and Chemical Fertilizer sectors the most.
Guodian Nanjing Automation Co. (600268) rallied to limit-up as the recent heavily polluted weather fueled the speculation that the charging posts produced by the firm may get more orders, supported by gov to reduce the emission.
DXY stayed around 103 level with more optimistic data of US economy but Fed officials provided no more clue for rate hike next year.
CNUYSD remained weak around 6.946 as market pricing 2017 depreciation target around 7.1~7.3 region. It’s difficult to modify the expectation that China econ would slow down for another year.
In commodity market, rice, cotton and wheat led the rally as investors seeking safe haven during recent slump of commodities.
Coal, coke and iron ore, the former leaders, fell the most, as the coal production rebounded since October as gov loosened some regulation to encourage supply of the fuel to curb the overheating of the coals.
Though SHA lack the momentum to rally further toward 3200 for the holiday season, we still favor sectors such as new energy cars, international trade and tourism,
which could benefit from the recent macro theme and following the seasonal trend.


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