Daily Report 080916

Stock Index
Firstly: G20 summit communique: reaffirm our commitment to avoid competitive devaluation, and decided to use all the monetary, fiscal and structural tools. China will continue to implement proactive fiscal policy and structural reforms to support a moderate expansion of aggregate demand. Secondly: State regular requirements, increase efforts to implement the proactive fiscal policy, and actively resolve excess capacity, resolutely eliminate backward production capacity. Develop further opening of foreign capital utilization measures to accelerate free trade replicated pilot test area new experiences. Thirdly: The State Council inspection teams supervise the economic performance, will involve the implementation of the State Council steady growth policies, as well as supply-side reforms landing this year, the implementation of innovation, protect and improve people's livelihood and other issues. Now market lacks hotspot. Rally section lacks long term logic. With promote of reform, de-capacity, state-owned enterprise reform, stronger supervise and deduct enterprise burden, capital is leaving virtual and flowing into real section. The market is not pessimistic.
 
PP
Yesterday PP futures fluctuated at high point; opened at 7321 and closed at 7318. Trading volume decreased 307000 lots to 236000 lots. Holding volume decreased 39614 lots to 636000 lots. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7950-8100/ton, RMB 8100-8300/ton and RMB8150-8330/ton, respectively. Current although moving average system twisted, MACD green volume shortened. Downward motion ended, and observe 60 days average line.
 
Copper
Wednesday copper market dropped after increase. Monday reached $4688.5 then difficult to maintain, and dropped a lot. Wednesday LME physical enlarged $1.25 to discount $18.25. Recent two days LME inventory increase speed began to weak down. The past more than ten continuous days inventory rapid increase has caused LME inventory reached the highest point since September 9, 2015. Physical discount has reached the lowest point of discount $20 because of inventory stress. Supply side, Salvador of Chile CODELCO strike reached the third day. Its operation suspended. The expected copper output of this year is 63000 tons. Technically, we focus on the effectiveness of low position bolster. LME is $4690 and domestically RMB 37000.
 
                                                                                                        Dong LV (Investment Certificate NO. TZ008452)