The CSI 300 index is trading to its highest levels in more than five years The rally today in Chinese stocks has been unrelenting. Investors are back from the lunch break and have turned 4% gains to over 5% gains now on the day in both the CSI 300 and Shanghai Composite indices.
Chinese state media is pushing the narrative that a bull market is here What is even more impressive is that trading volumes are surging, with daily turnover exceeding ¥1 trillion on Thursday and Friday last week - and likely to exceed that mark once again today. That represents a sign of surging risk appetite.
Risk-on to start the new week For some context, WHO noted over 200,000 coronavirus cases in 24 hours across the globe on Saturday - a record figure. It is still early in the day but so far the moves are pretty modest so let's see if that can keep pace as we get into the European trading
GS say that outside the US, the cyclical news is generally positive. We are very optimistic in Europe Meanwhile EUR is having a good session here: Earlier from GS, not so optimistic oin the US:
From a Citi analysts client note - the bank has switched from bearish to neutral Says markets seem to be less troubled about the rising number COVID-19 cases, due to:
Forex news for Asia trading Monday 6 July 2020 - - A strong day for the risk trade across FX and Chinese equities with any bad news shrugged off and good news (or even news not as bad as expected) embraced. The US has become a global red-hotspot for coronavirus outbreaks but the weekend numbers from
Francois Villeroy de Galhau is head of the Bank of France and as such is on the European Central Bank policy baord Said the coronavirus pandemic has permanently changed European economic policy. On the expansion of ECB measures (eg negative interest rates, QE, long-term bank loans)
The Shanghai Composite Index is further exten ding its gains - +3% - and above 3,200 for the first time since April 2019 Shanghai Composite has surged more than 20% from its recent low late in March
A weekend note via Nordea with a ling euro sgainst Swissy recommendation - Target is 1.1020 - stop loss is 1.0480 Citing: - it is the pair that most truly reflects the EUR break up risk premia ---
A Global Times piece, shaking a fist at Canada: GT also brings up the arrest of the Huawei executive (and daughter of the company's founder) Article for more.
