Daily Report 240616 2016-06-24
Stock Index
Pound fluctuated largely; YouGov shows polls are favor of remain EU. Domestic stock index fluctuated little. Referendum may only be a psychological stimulus, but does not reflect the direction. A share is still focus on supply-side reforms, exchange rate, debt reduction and other issues. News side: firstly, Li Keqiang visits the central bank and said that the RMB exchange rate formation mechanism reform shows the effectiveness of previews; Secondly, the State Council Information Office: 2015 government debt to GDP ratio was 39.4%, China debt risk overall can be controlled, but potential future risks can’t be ignored . We believe that supply-side reforms and innovation have a positive effect in the long run, but there are many uncertainties during the downward process; reforms, steady growth and the debt problems sparked concerns. But there is not much of a worry in the short term. From the industrial capital, the reduction is increasing. In June, 262 listed companies have significant shareholders holdings, which is 25 billion yuan. Overall, the market is under volatility, although it’s the low point, but it is difficult to continue ascribed.

Thursday's copper performance is strong, copper prices continued to rebound, short positions close are obvious. From the copper market, copper is difficult to down, eventually short closure becomes the main driver of the market short-covering rally. We tend that low copper prices is now, but copper price is still hard to avoid the shock of the low position. In the short term, copper prices breaks 60-day moving average, showing a strong trend, it is estimated short-term copper prices are still possible to ascribed. We put the resistance of $ 4850-4900, and domestic near 37,500 yuan.

Yesterday PP futures fluctuated at high point. Opened at 7361 and closed at 7355. Trading volume decreased 44408 lots to 451000 lots. Holding volume increased 13634 lots to 684000 lots. Spot goods side, yesterday domestic PP market increased with fluctuation, which is RMB 50/ton. Part of producer price of petrochemical increased, and bolster for the market costs strengthened. PP futures operate at high point, and influence on market attitude is limited. Traders quote as storage situation, the price is a little high. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7100-7250/ton, RMB7400-7500/ton and RMB7350-7400/ton, respectively. As for operation, current moving average system arranges in long. MACD red column shortened, and upward tendency is weak.
                                                                              Dong LV (Investment Certificate NO. TZ008452)