China fundamental:
China stocks stayed firm with SHA rose about 0.1%.PMIs for June showed the economy had stopped to expand for another month, with Caixin Manufacture PMIs declined 4 months in a row.
Research Notes:
Money flowed into Aviation, Ship Building and Hotel sectors the most. Future Land Co.(601155.sh), rallied to limit-up for it released plan to sell assets to acquire some more profitable property.
The selling of CNYUSD continued with these disappointed econ data. But DXY can’t stay 96 for long and started to fall.In commodity market, tin and silver led the rally, some agriculture commodity futures also rose for USDA numbers overnight supported bean complex. We felt that commodity, especially those benefit from global liquidity surge and adverse weather, may outperform equity, and should be overweighed, as well as those companies which can improve their profit with a bull market of commodities. SHA may face heavy pressure from 3000 threshold, which is still plausible, but gold and silver may have large room to rise further. A long commodity short equity strategy should be our pick for the next several weeks.
Copyright by FangQuant.com