CHINA: Risk-off Moves Across China Work Against Local Markets

A particular focus on Chinese markets overnight, where risk-off moves worked against both headline equity indices as well as relevant industrial commodities:

• CHINA (BBG): Chinese Stocks Slump Amid Signs National Team Is Pulling Back
  Chinese stocks suffered their biggest decline in six months as a lack of major policy support following the Third Plenum reinforced bearish sentiment. The onshore benchmark CSI 300 Index closed 2.1% lower, following a 0.7% drop in the previous session.
• CHINA (Yicai): PBOC Could Phase Out MLF
  The PBOC could eventually phase out its medium term lending facility and use the DR series of overnight rates as the main policy tool, according to Wen Bin, chief economist at China Minsheng Bank.
• CHINA (BBG): China’s Deadly Rains to Intensify as Tropical Storms Arrive
  Heavy rains lashing China have left at least 26 people dead in the past week, flooding city streets and threatening farming and industrial activity, as two more tropical storms barrel toward the nation.
• COMMODITIES (BBG): Iron Ore Buckles Below $100 as China’s Plenum Fails to Inspire
   Iron ore crumbled below $100 a ton as a policy meeting in China failed to deliver major stimulus, while supplies stayed strong. The outcome of the Third Plenum, a twice-a-decade conclave of Communist Party officials held last week, underwhelmed investors, with few steps to boost metals demand or fix the property crisis.
• COMMODITIES (BBG): Copper Falls to Lowest Since Early April on China Pessimism
  Copper fell to lowest level in almost four months on concern that Chinese demand for industrial metals is weakening. A twice-a-decade conclave of China’s top leadership held last week has so far failed to deliver any meaningful stimulus.