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Sunday, April 24, 2011

G7 working together to throw early Hong Kong stocks rise of the yen is now

Saudi continues to its “ sent money ” policy, Middle East crisis deterioration of opportunities reduce, Japan Fukushima nuclear power plant also again recovery cooling system, market panic emotional greatly relieve, more important of is G7 joint intervention Forex, suppressed Yen rally, enhanced investors of confidence, Hong Kong equities held by last week by low obvious rebound, Hang Seng index five a trading day rose 4th, heavy Shang 23,100 points, display Hong Kong equities held by has see back stability signs, Friday to a week high 23,158 points closing, full week tired rose 858 points, increases up 3.85%. Supported by the strong performance in domestic shares in State enterprises index better, increases up to 4.41%.

performance period has more than a half, performance of blue chips was mixed, Sinopec and China Construction Bank performance has not yet announced when you wrote, but oil, CNOOC is ideal in the trade, Bank of China also ceiling up to market expectations, to drive the main driver of city rise. However, large blue chip HSBC, China Mobile results are not satisfactory; Tencent, lifeng, China coal energy performance disappointed investors, three one-day drop of 10% after releasing results. The focus of this week is certainly long and publish results on Thursday, in the case of 3G performance turn losses into profits, believe that Hutchison will become the next rally, led by shares.

since March 18, starting with the G7 joint intervention yen, selling approximately 530 billion yen to suppress the rise of the yen, this is a G7 intervention in foreign exchange market operations for the first time in the last decade. Now each link is closely related to global financial markets, the yen is the protagonist of the carry trade, the effect is even more important. The so-called carry trade, that is, investors sold the yen, buying other high interest rate currencies, due to the long-term maintenance of zero coupon Japanese yen, investors can profit from both margins, in addition to buy high interest currencies in recent years, also buy other risk assets such as equities, commodities, so important trend on the global investment market trend of the yen.

Japan appears after the nuclear crisis, after World War II high of Yen rise to 76.25 forced investors unwinding stops, so that compression of risky assets, the G7 will be joint intervention in foreign exchange market for the first time, to ensure financial market stability. At present, the United States economic recovery remained the basis of instability, European debt situation is critical, so believe intervention continues, will continue to be substantial selling Yen to pressure their run. In the case of banknotes flooded added liquidity, is bound to asset prices pushed further, so I expect the next few months, will enter a new round of increases in commodity and stock market quotes.

if it is not a new breaking news broke, the Hang Seng index at 22,123 almost certainly had bottomed out, future repeated upward trend should be maintained, but the blue-chip performance has been mixed, instead of guessing the rise and fall of big city, it would be better concentrated investment to good performance and promising shares. Many units have published results from a year earlier, part of the performance of building materials unit and heavy engineering unit is pretty good, and national policy support, better prospects for the future, from which the investor may wish to treasure, for long-term investment. (Huafujialuo securities Yin Yancong)