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Equities are joining in on the risk rally.....>

CHINA
CHINA: Equities are joining in on the risk rally in Chinese markets with the
CSI300 up 1.9% and HSI up 0.5% as both markets show signs of bullish divergence
which point to a potential market bottom.
- This chimes with the rise in rate expectations seen over the past week, which
saw 2-year swaps trade at a 3-week high today at 2.9350%. This comes as US swaps
have edged down, resulting in the China-US 2-year swap spread hitting a monthly
high at 13.8bps.
- This is helping USDCNH edge lower following its break below 21-dma support.
The next downside target is the 6.7360 pivot area.  

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