Shanghai Composite seems poised to.....>

CHINA STOCKS: Shanghai Composite seems poised to extend its winning streak. A

bullish engulfing candlestick pattern charted on Friday sparked a jump off an

ascending trendline & the 200-DMA (blue line). The move was preceded by a

bullish 50-/100-DMA crossover and has taken the index above the resistance zone

in the 2,980 area. Looking at the broader picture, the index remains contained

within a narrowing range. A break of the Oct 14 peak at 3,026.38 would open up

potential for filling the gap from the Apr 30 low of 3,052.03, after two failed

attacks at the level on Sep 16 (high at 3,042.93) and Jul 2 (high at 3,048.48).

- Worth noting the PBoC lowered the rate applied to its 1-Year MLF ops today.

- Sino-U.S. trade matters still in focus, amid a broad perception of progress in

"phase one" deal. However, questions remain re: further trajectory of the talks

as both sides show little willingness to concede on key sticking points.

- CICC reported that China's equity mkt will receive $35-40bn of inflows after

MSCI upped its A-share inclusion factor to 20% from 15%. The change will take

effect at the end of Nov and completes a three-step process announced in Feb.

- See chart at: https://emedia.marketnews.com/marketnewsintl/SHCOMP05112019.png