Show less
Morning Call: Softer dollar boosts commodities, stocks
21 September 2018 at 7:40 GMT
Morning Call: Markets stabilise as trade tensions ease
20 September 2018 at 8:28 GMT
Morning Call: Chinese shares surge as trade war rages on
19 September 2018 at 8:36 GMT
Today’s FX chart analysis - video
John J Hardy
18 September 2018 at 10:28 GMT
Morning Call: Trump hits China with tariff plan
18 September 2018 at 7:29 GMT
The week ahead in macro
Kay Van-Petersen
17 September 2018 at 8:11 GMT
Macro Monday week 38: Keep Global Macro and Carry On
Kay Van-Petersen
17 September 2018 at 8:02 GMT
Morning Call: US yield curve lifts, boosting dollar
17 September 2018 at 7:23 GMT
Technical analysis webinar – A view of the market: Larsson
Kim Cramer Larsson
12 September 2018 at 14:44 GMT
Morning Call: Chinese shares fall further
11 September 2018 at 8:36 GMT
Morning Call: USD, SEK in focus
10 September 2018 at 7:49 GMT
The week ahead in macro
Kay Van-Petersen
10 September 2018 at 7:37 GMT
Morning Call: Is Japan next?
07 September 2018 at 7:35 GMT
Video / 07 December 2017 at 8:20 GMT

From the Floor: Buy the dip in China? — #SaxoStrats

   • Chinese stocks show continued value/momentum divergence
   • Tech-sector shares still falling in Shenzhen, downward HSI pressure slowing
   • Gold looking for support after breaking trendline from December 2016
   • Copper posts limited bounce after biggest one-day selloff in over two years
   • Jump in gasoline stocks could see lower refinery demand for crude

By Michael McKenna

Declines in Hong Kong's Hang Seng index are slowing, reports Saxo Bank head of equities strategy Peter Garnry, but the Chinese tech sector continues to sell off, particularly in Shenzhen and on the Shanghai-Shenzhen CSI 300 index.

"We continue to see divergence between value and momentum shares," says Garnry, adding that it could be time for investors to consider buying the dip.

"Looking at the data, nothing has fundamentally changed," Garnry concludes.

In single shares, Saxo's equities head points to a $20 billion charge faced by Citigroup as tax reform means that the firm will have to write down deferred tax assets; the amount is far in excess of that faced by competitors, with JPMorgan's total bill amounting to just $2bn.

Hang Seng

Create your own charts with SaxoTraderGO click here to learn more

Source: Saxo Bank

In commodities, Saxo's Ole Hansen points to gold volatility as prices have broken through support at $1,261/oz and are below both the 200-day moving average and a long-term trendline stretching back to December 2016.

"We saw additional selling this morning," says Saxo bank's head of commodities strategy, "while copper posted a limited bounce following its largest one-day selloff in more than two years".

In oil, Hansen reports that a jump in gasoline stocks could be crude-negative on a consequent slump in refinery demand, noting that we are still seeing "buying fatigue" in the wake of the production cut deal extension signed by Opec and Russia last week.

CSI 300

Is it time to buy the dip in Shenzhen tech stocks? Photo: Shutterstock

Michael McKenna is senior editor at Saxo Bank


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail