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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
- Momentum in Chinese equities has been firmed since the middle of March; the Hang Seng Index is up nearly 25% from its low reached on March 15.
- The momentum started after reporters were told that regulatory authorities were ‘mulling measures to jointly crackdown on malicious short sellers’, which officials have viewed as one of the factors behind equity weakness.
- Even though the ‘zero-Covid policy’ continues to dramatically weigh on growth expectations, the easing policy in China could support ‘cheap’ equities in the medium term.
- Next resistance to watch on the topside stands at 22,804.30 (50DMA), followed by 23,181.60, which corresponds to the 38.2% Fibo retracement of the 18,235.50 – 31,183.40 range.
- Interestingly, renewed inflows in Chinese equities have not been supporting the Yuan, with USDCNH currently trading slightly above its 100DMA (6.3624).
- Key resistance to watch on USDCNH stands at 6.4063, which corresponds to the 200DMA (rejected in mid-March).
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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