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Market review: June 07, 2016

Fang submitted 2016-06-07 15:31:05

Market review:

The stagnation of China stocks continued for another day. The overnight speech of Yellen confirmed that Fed can’t hike the rate in June and probably for the next several months, when Fed watching risks like China and Brexit.

Research Notes:

Money continued to flow into Non-ferrous Metal, Wine and Automobile Parts sectors. Henan Silver Dove Industry Investment Co. (600069.sh) rallied to limit-up as it release the restructure plan and to be bought by outside investors.

Cotton, iron ore and Hot Rolled Coils led the commodity rally as speculators considered commodity to be a better bet for Fed staying put. CNYUSD offshore weakened after several days of rally. The risk appetite before the holiday could be low, and SHA ‘s experiencing some downside pressure when approaching 2950. Hence we suggest investors to hold some shares that benefit from commodity rally, such as agriculture and lithium sectors, if they can’t hold commodity derivatives directly.

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