Tuesday, May 31, 2016

China Bull Waking up? US market updates


China Market had their largest single day gain in 2 months as investors speculate on the MSCI inclusion of china share. Shanghai up 3.34% . The announcement of the MSCI inclusion is estimated to be out in 2 weeks time.

Goldman Sachs has increased the probability that MSCI will include mainland Chinese shares in its indexes to 70 percent. (Channelnewsasia)

In the recent announcement, the authorities had taken steps to tighten companies in suspension(and resume from suspension) of share trading. with this problem taken care of it will help in MSCI including china share into their index.
 MSCI将于6月15日宣布,是否在今年将A股纳入其全球指数体系。如果得以通过,按计划,由于受限于中国的资本管制,第一步是将按市值的5%将A股纳入MSCIChina 指数,以及相应的综合指数,如新兴市场指数(MSCIEmerging Market Index)。市场对MSCI并不陌生,MSCI从2013年启动针对将A 股纳入其全球指数的审议。在2014和2015年,MSCI曾对纳入A股进行了两轮市场咨询,最后都以决定暂不纳入A告终,但A股继续保留在审核名单上。在最近的一次审议,2015年6月,MSCI在宣布暂不把A股纳入其全球指数系列后,表示会针对国际投资者比较担忧的三个问题,和证监会将组成工作小组,以促进这些问题成功解决,然后将A股纳入其指数体系。

With the inclusion of china shares into MSCI index. Fund managers will more willing to invest into China share. If China market is up, fund managers will not want to underperform the index, hence will also include China stock into their portfolio.

US Market Updates
Last week we see Nasdaq up 3.3% biggest weekly gain since 19 Feb, Dow Jones up 2.13% biggest weekly gain since 18 March ending the 4 consecutive week drop. S&P 500 also up 2.2%, biggest gain since 4th March.
 上周纳指全周劲升3.3%,为2月19日以来最大单周涨幅;道指上涨2.13%,为3月18日以来最大单周涨幅,结束了连跌四周的颓势;标普500指数全周上涨2.2%,为3月4日以来最大周涨幅。

Fed Chairman, Janet Yellen 
美联储主席耶伦表示,未来数月加息很可能是合适的。耶伦表示,美国“经济正在继续改善”,并预计在经历了表现疲弱的第一季度以后,未来的经济增长速度将有所加快。她还补充道,原油价格和美元汇率正在“大致稳定下来”,这将有助于推动通胀率朝着美联储的目标水平的方向回升。

This week to watch
1. U.S. nonfarm payrolls report -The U.S. Labor Department will release its May nonfarm payrolls report at 12:30GMT, or 8:30AM ET, on Friday.
2. The European Central Bank's interest rate decision is due at 11:45GMT, or 7:45AM ET, on Thursday

3The China Federation of Logistics and Purchasing is to release data on May manufacturing sector activity at 01:00GMT on Wednesday,

4The Organization of Petroleum Exporting Countries will meet in Vienna on Thursday

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