Dropped due to property cooling exercise. China government recently announced over 8 Trillion yuan investment to beef up infrastructure (to support gas energy development) at western China (4 Trillion yuan) and also high-speed rail (120 billion US$) projects. More projects such as public housing, etc., may add on to offset the property cool down, etc.
Watch the Shanghai Composite Index when Asia market opens on Monday. Refer to previous post on SSE > 2600 resistance. Personal view : Positive (PMI may bottom here) and more news from late 2nd week of August 2010 onwards; CPI.....
Watch commodities such as Copper, Steel, Aluminium... increase in prices/demand but Gold may correct down in short term.
Another positive sign also for shipping/rail - Transport sector.
Is Dow Jones Transport rising? Yes
Is Freight Container Rate moving up? Yes
Nevertheless, trade cautiously and watch S&P500 closely early next week whether it can break 1120 (with volume) resistance (charting from chartists/gurus) and surge above .... Fundamental is positive (Asia, Europe, South Ameria, Africa, Middle-East) except Worried about US Growth Slow Down. More positive market headlines recently....
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