Market review:
China stocks fell with SHA down 3.21% for investors cut positions before MSCI decision and Fed minutes. Macro data for May showed China economy still in a growth slowing down mode and investors have to tackle a very likely MSCI disappointment and risk of Brexit at the same time. Money outflowed from Software, Electronics and Petrochemicals sectors the most. Dongfeng Automobile rallied to limit-up as fast growth of its new energy car business. The selling of A-Share after the holiday , though sudden, it’s understandable, given three major macro risks lying ahead for the rest of June. And the rally of Agri-commodities, led by the weather driven Soybean meal and Rapeseed meal, also placed PBOC in a monetary dilemma situation. As a result, we maintained our recommendation of long agri-commodities short industrial materials / IH futures trade. It seems only reasonable to load up some shares after the UK voting on its membership of EU on June 23rd.
Copyright by FangQuant.com