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Why I’m buying HK50.I after China data – #SaxoStrats video
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Better than expected PMI manufacturing and services figures from China suggests the country’s economy is improving, says Saxo Bank’s head of equity strategy Peter Garnry.
The Li Keqiang Index tracking manufacturing activity is now up 9.9% year-on-year, accelerating from 1.2% year-on-year in September 2015. The Hang Seng valuation is among the cheapest in the emerging-markets segment, says Garnry.
Through the CFD Index Tracker HK50.I, he is looking buy at market with a target at 24,000 points and a very tight stop at 23,150 points.
Garnry explains that the biggest risk to his trade is worse-than-expected macro data over the coming days with a potentially hawkish FOMC meeting on Wednesday.