China Stocks Outperform On Their Return

The Sun Shines In Shanghai, For Now


Strong Chinese PMI Boosts China Equities

China equities are playing catchup this morning, after returning from an 8-day holiday. The data has seen the and CSI 300 climb sharply by 1.68% initially, boosted by robust real-time data from the holiday break, and property developer Evergrande dodging another debt bullet. US index futures have also risen in early Asia, likely supported by the strong China open.

Elsewhere though, the rest of Asia is definitely in wait-and-see mode, preferring to insulate themselves from the random risks associated with the Presidential Twitter account. Japan, South Korea, Taiwan, Hong Kong, Jakarta and Singapore are ranging each side of unchanged quietly. Even the perpetual optimists of Australia have paused for thought today, perhaps with one eye on their national rugby team’s impending smashing by the New Zealand All Blacks tomorrow, with the ASX and All Ordinaries almost unchanged.

We expect the initial jump in China to run out of steam later in the session, and for the mainland, stocks to also move into wait-and-see mode. Although the US major indices rose between 0.50% and 0.80% overnight, predicting the US president is firmly in the too hard box for the rest of the world.

The fact that Mr Mnuchin and Ms Pelosi are talking again was enough to inspire a modest gain in US equities overnight. Hopes remain that a fiscal stimulus package could emerge before the election. Although, realistically, it would take a titanic effort to make that happen before the election date. Still, it’s the thought that counts. Markets head into the end of the week in a positive frame of mind after a schizophrenic week. Movement on the US stimulus package would be market positive, but markets outside the US won’t react until they see ink on paper, or at least a joint statement from Mnuchin and Pelosi.

Original Post

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

MarketPulse


Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME