China equity continued to rise following the overnight optimistic of US and EU market. SHA climbed about 1.82%,the biggest jump since July 4th. Money flowed into Finance, Aviation and Banking sectors the most.Sinopec Oilfield Service Co., rallied to limit-up for rise of energy price and tension in South China Sea. CNYUSD found some support around 6.69 with DXY weakened overnight for investors played the risk-on move. In commodity market, coal and iron ore futures led the rally, rose about 6% on expectation the recent flood and supply side reform could cut the production and support the price. The assign of new UK prime minister had reduce the concern in EU market but we believe that gold and silver still are in favor from a global easing environment. As dispute in South China Sea going on and China Armed Forces showed its muscles, defense, ship building and aviation sectors could be pick of midterm and investors could reduce some risk exposure when SHA hit the 3100 threshold, for the macro data due this week end in our opinion could biased to the bearish side.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.