China A50 Index: Relatively strong in October within global indexes

The China A50 Index rose 3.8% in October, which outperformed the global indexes, such as Dow Jones (-4.27%) and Euro Stoxx 50 (-7.29%).


The China A50 Index rose 3.8% in October, which outperformed the global indexes, such as Dow Jones (-4.27%) and Euro Stoxx 50 (-7.29%). In fact, China's economy has shown the gradual recovery signal. on the economic front, China's official Manufacturing PMI rose to 51.4 in October (51.3 expected) from 51.5 in September and Non-manufacturing PMI climbed to 56.2 (56.0 expected) from 55.9, according to the government. Besides, Caixin China Manufacturing PMI rose to 53.6 in October (52.8 expected) from 53.0.

Investors should focus on the October Caixin Non-Manufacturing PMI (55.0 expected) and the trade data ahead of this week.

From a technical point of view, the index remains holding above the 50-day moving average after breaking above the declining trend line drawn from July. The relative strength index is also supported by a rising trend line drawn from February. 

Bullish readers could set the support levels at 15380, while resistance levels would be located at 16485 and 17550.

Source: GAIN Capital, TradingView

More from China A50

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account