Chinas has become increasingly influential on the ASX of late as the volatility increases in the resources space – as we showed earlier it’s been a tough fortnight for the likes of copper and crude oil. After bouncing ~10% over the last few weeks Chinese stocks look poised for a breather before we will see if they have the support to recover more of their substantial losses since early 2021 – future statements from Xi Jinping are likely to be the determining factor as to what comes next.
- We can see the CSI Index testing above 4000 into Christmas which is a good read-through for resources stocks but the risk/reward is not exciting.
MM is technically neutral to bullish Chinese stocks
