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Chinese stocks are starting the week...>

CHINA STOCKS
CHINA STOCKS: Chinese stocks are starting the week on the strong note they ended
last week with the CSI300 surging back through the 3200 level to create a
bottoming pattern with 3400 the next upside target. The Shenzhen Composite is
approaching the gap left on Oct 11, as is the Chinext. 
- The HSI has already closed its Oct 11 gap as bulls look to recover the 26000
level. Above here would shift the outlook bullish. 
- The rally is significant in that it comes amid weakness in US futures which
has been attributed partly to concerns over US-China trade, suggesting a
potential shift in market momentum in favour of China over the US. 
- USDCNH has not responded to the surge in stocks, still trading at 6.94, while
2-year swaps are up by just 2.3bps at 2.8925%. 

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