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Market review: March 6, 2017

Fang submitted 2017-03-06 23:35:22

Research Notes:

China stocks rose with SHA climbed about .48%.


Market review:

Money flowed into Software Development,Household Electronics, Environment Protection sectors the most. Tongling Jingda Special Magnet Wire Co(600577) rallied to limit-up as DXY stayed firm around 101 level as investors preparing for possible Fed rate hike in March FOMC.

CNYUSD fell toward 6.89 as PBOC eased the money tightness with more rev-repo, at least for the near term.As investors believed that the firm's profit should had improved significantly as to be shown in the earnings report due Mar 7th.In commodity market, Cotton, Manganese Silicon, Corn rallied the most. Cotton's supported by the bullrun in ICE cotton. And the re-emphasis on supply-curb by gov boosted commodities generally. The sentiment turned bullish with people’s congress for the short term and we recommended to overweight new energy, electronic cars and AI sectors, as gov’s encouraging more investment into these industries. Another hot spot is coal and mining sectors in general as supply-curb will continue to support the price of these raw materials. SHA 3300 is still likely but mostly would be reached after the March FOMC.


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