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Chinese stocks are up ~1% across the board....>

CHINA
CHINA: Chinese stocks are up ~1% across the board as the hold of the Oct 19 lows
yesterday has shifted the focus to the upside. The CSI300 trades at 3150, with
the Oct 22 just below 3000 a key level that needs to be overcome to improve the
outlook. 
- The recovery in stocks is helping lift rate markets, with 2-year swaps
remaining clear of 2.8% after yesterday's recovery of this level.
- Rates bottomed out in August and despite remaining closely correlated with
stocks, have failed to follow them to new cycle lows, marking a bullish
divergence. 
- USDCNH is trading at the top end of its tight range at 6.9757 as the yuan
fails to benefit from the stabilization in stocks and rates. The relentless rise
in US real yields continues to point to further upside towards the key 7.0
level.  

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