FangQuant › Financial Futures

Market review: January 5, 2017

Fang submitted 2017-01-05 16:01:36

Market review:
China stocks continued to rise with PBOC made some move to scare off some rmb shorts.

Research Notes:
Money flowed into Aviation, Petrochemical and Telecommunication sectors the most with SHA climbed about 0.21%, the fifth day in a row.
DXY overnight barely hold the 102 line as investors expected no move of Fed in January FOMC as the White House would have a new president.
CNYUSD rebounded to 6.81 level as many traders believed that PBOC caused such move to turn some expectation of the weakening of RMB,
as Q1 could be the time when residents have the strongest intention to use their exchange quota.
Hence we consider the move could be limited in the short term and CNYUSD will fall to 7 + in the next several weeks.
The weak dollar also spurred a rally of commodities, with tin, coal and lead rose the most.
Recent smog weather in China forced NDRC to order more factories to reduce output to limit some pollution emission.
As Spring Festival approaching, we recommended those sectors related to the holiday season, such as Food & Beverage, Luxury Goods and Tourism.
The improved liquidity condition could send SHA back to 3300 as well but most likely after the holiday.

Copyright by FangQuant.com

Currently no Comments.