Resilient Equity Markets, Anticipating Stimulus in China
In the East, despite ongoing efforts to stimulate its economy following the lifting of lockdown measures, China continues to grapple with a challenging recovery process. This struggle is primarily due to an economic crackdown and weak exports. As a result, market analysts anticipate that Beijing will amplify its stimulus strategies to rekindle domestic growth.
Based on these positive signals and the prospect of increased stimulus, alongside appealing valuations, we anticipate this upward trend to persist.
JD.com (9618, HK): Expecting Trend Change. Weak supply effort observed with relative strength and fund flow improving. We expect rebound to continue towards HK$160 level, with stop loss price below HK$122.70
Our trading strategy this week will be to continue seek out opportunities for long trades in both the US and China markets.
Headlines for Week Ahead:
US Services PMI
China Trade Data