Broader market can rebound from the short-term

Broader market can rebound from the short-term

U.S. stocks plummeted overnight under the influence of the already very fragile A shares falling into the quagmire of low opening shock, the early shock although the row indexes rebound, but ultimately could not withstand the air pressure slightly Pandie side. Continuous decline in short-term broader market, there is much room for actually sell into corrections, and today is the decline of small Yangxian relay or the end of it.

First, the policy to continue to suppress negative factor in the high side market. Central Bank rate hike expectations and banking stocks increased possibility of refinancing short-term speculation is the main force to suppress stock index rebounded yesterday’s weak performance can be seen, in the U.S. stock market today is the stimulation of lower, short-term if not warm the news, the broader market will still have the possibility of further shocks. With main stock index futures contracts in May is about to expire, so can only wait for the postganglionic determine market direction.

Second, the company fundamentals remain broadly favorable. As of today, the Shanghai and Shenzhen listed companies disclosed a total of 1410 a quarterly net profit of which 1082 have increased, accounting for close to Ba Cheng, an average of over 80% of net profit, fundamentals still maintained relatively good growth, through the disk can see a steady quarterly growth trend to continue on the clear defensive.

Third, the phenomenon began to occur the net broken. In the second half of 2008, net breaking phenomenon appeared in nearly two hundred units of the body, including today, including the number of Anyang Iron & Steel stocks are basically broken circled the net and really, in which mostly real estate and steel stocks, net assets and shares the basic line, indicating the market weak reproduction.

IV, the Fund holding the surface uneven. Because of the stimulus out of concern and inflation expectations, institutional level, there are also differences. A quarterly display data, the fund’s also not unusual quilt. Fund also began Jiancang action, and easy exchange Tianfu Fonda particularly active lighten performance, including insurance funds have also emerged, including signs to lighten up.

Of banks to real estate performance indices related to. The broader market shocks down none other than the main force of non-real estate banking, financial and real estate while short-term signs of stabilization have stabilized, but the rebound in the short term strength and rhythm of concern to the broader market index. Overall view of the current situation to continue down the space is not large, so the index of the formation of space constraints.

In short, the current bearish market news face larger proportion, which is the weight plates can not do more because large-scale, short-term caution is still the main operation. But the fundamentals on a quarterly or more beautiful Eighty per cent of the company to maintain stable earnings growth, including low carbon economy and some areas continue to remain active plate short, the market will continue out of the polarization, it is recommended to maintain a good attention to quarterly new industries and anti-inflation spending to upgrade the concept of home loans, the weak market, select the track a strong defensive focus is a good choice.

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