Bulls Rise on China
Economic data from China is giving a boost to the global equity markets. The Financial Times
reports China’s official purchasing manager’s index pulled back slightly to 53.1 last month from 53.3 in April. But the figure still marks a third consecutive month that the number came in above 50, the dividing line between a contraction and expansion.
Historically, the index has shown to be seasonally weak in May over April. Goldman Sachs said in a research note that the fact that May PMI held up despite the seasonally weak period means fears are unfounded and expects strong growth in domestic demand, especially in fixed-asset investments. Elsewhere, Jing Ulrich, head of China equities at JP Morgan, also said manufacturing in the country is likely to continue expanding, supported by more of the roll-out of the government stimulus. From the Bull Pen
: Could the better plays lie in the business partners of China? Consider Brazil and the iShares MSCI Brazil ETF
(EWZ). One can set an initial position here with a sell stop near $53-54. From the Bear Cave
: For a downside play, one can look to Alaska Air Group
(ALK). The stock as well as the sector has displayed poor relative strength. Consider entry on a rally back to its 20 DMA ($16.50), if and when. Quick Check Around the World
Asian trading closed with the Hang Seng
1.63%, and Taiwan
Glancing towards Europe, we see the CAC
As of 8:05 AM EST, S&P Futures
are trading +12 to 930.00, and Nasdaq futures
are +12 to 1447.00. A Look at Commodities
Over in commodities, crude oil
is trading +1.52 to 67.83 while gold
is +7.10 at 985.90 this morning. Silver
is +0.260 to 15.87 and copper
+6.35 to 226.10.
The dollar index
is -0.5550 to 78.8750. On the Radar
08:30 Personal Income -0.2% Cons.
08:30 Personal Spending -0.2% Cons.
10:00 Construction Spending -1.8% Cons.
10:00 ISM Index 42.00 Cons.
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Welcome back, Minyans. Good luck today!
No positions in stocks mentioned.
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