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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- In the past week, business sentiment has started to pick up in China following the positive headlines on China ‘declaring victory’ on Covid.
- The National Health Commission announced on Tuesday that China will slash the quarantine time for inbound travellers by half (from 14 to 7 days), and will cut the at-home health monitoring from 7 to 3 days.
- Market has been reacting positively to these headlines so far; the Hang Seng index continues to retrace higher this week, breaking above its 100DMA on Monday.
- Next resistance to watch on the topside stands at 23,100 (200DMA / 61.8% Fibo retracement).
- Investors have started to question if China tech could experience a short term rally in the coming weeks.
- We previously saw that tech equities have not responded to the strong rebound in China ‘liquidity’ since the start of the year.
- The chart shows the significant divergence between year-on-year change in tech equities and China TSF (also referred as ‘liquidity’).
- The major risk remains the global macro picture as geopolitical uncertainty combined with stagflation fears could continue to weigh on risky assets globally.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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