Chinese stocks are under some downside........>

CHINA: Chinese stocks are under some downside pressure, giving up all of the

strong gains seen at the open which followed on from the US rally. The CSI300 is

now down 0.4% on the day, testing the 3200 support level, while the HSI has

pared its gains to 0.3% after failing to overcome yesterday's high. The 26000

support level remains intact. 

- Bond markets are following stocks lower with the 10-year yield down 1.8bps at

new three-month lows of 3.489%. Interest rate swaps are also giving back their

gains, with the 2-year now flat on the day at 2.83%.

- The yuan has largely shrugged off the swings in stocks and bonds, trading

within yesterday's range as markets await the upcoming Fed meeting and any signs

of a shift in US-China trade policy following the midterm elections.