Market going adjustment since the second quarter, China’s sovereign credit default CDS prices rose over the same period, showing a share significantly increased under the influence of international capital markets. Dawn is the European debt crisis, domestic policy fine-tuning, concerns about the sharp easing, valuations, policies at the end of the end of coincidence, the market is expected to usher in positions with a good opportunity.

　　United States data continued to improve

　　Although the United States unemployment rate is still high, but according to their economic recovery steady. Because of strong growth in consumer spending and business investment in the third quarter by quarter adjusted gross domestic product (GDP) initial value to the fastest pace in a year, quarter fold up 2.5% per annum. October Kansas City fed manufacturing index from September 6 rose to 8, Chicago Fed September Midwest Manufacturing index rising to 85.2 per cent showed United States signs manufacturing sector growth significantly. United States October 22 week unemployment benefits a small decrease in the number 2000 were to 402,000. September advance home sales rose 5.7%.

　　Due to the recent progress of the European debt crisis, $ callback, but weak trend clearly strong economic recovery in the United States and Europe, USD safe-haven is expected to increase, still face a correction pressure on commodity prices. The recent increase in gold prices, but against segregation still needs to be aware of the risk aversion.

　　Eurozone early dawn

　　This week’s EU Summit on the scale of the EFSF, Greece debt write-downs and banking recapitalisation reached a preliminary agreement, concern over the sharp ease, initial recovery of confidence. Three core problem-solving framework is finalized, euro zone still need to submit a detailed solution, so you can expect the eurozone will have repeatedly. Italy economic weakness, the debt problem is a central part of the European debt, France economic growth uncertainty is increasing, Germany is facing domestic political pressure, so European debt issues despite a crucial step, subsequent still need to be cautious.

　　Eurozone data is still dismal. 2010 euro-area Member States the Government fiscal deficit/GDP (GDP) than to the 6.2%, on government debt/GDP ratio to 85.4%. Eurozone September CPI increase in 3 years maximum, and rose 3%, for August in October, economic confidence index declined to 94.8 for 8 consecutive months, since December 2009 low. Initial value-19.9 per cent October eurozone consumer confidence index, for the fifth consecutive month of decline.

　　Domestic policy started loosening

　　Downside is seen signs of China’s exports, investment, consumption, inflation down trend in clear conditions, started to soundout relax, the introduction of sales tax pilot modified business tax, financial fiscal and tax measures to support small micro-enterprises. CPI in July after top falling November CPI could accelerate back down to 5%, PMI rebound in economic stabilisation and further enhanced.

　　Expects China’s monetary policy will remain cautious in the near future, real estate adjustment and not relax, or will try to make the observation on the United States for positions in the euro zone, on the absorption of American and Japanese lessons, inhibition of asset prices, promote economic restructuring. Due to falling real estate prices, tightening of monetary policy, inflation peaked, the record high of appreciation, coupled with rising costs led to the international industrial transfer and hot money back to Europe, so China’s rising economic uncertainty.

　　Market positions opportunities

　　Market adjusted significantly affected by the international capital markets since the second quarter. China’s sovereign credit default CDS prices rose in the third quarter, showing short the mood quickly increased, greatly increased investor worries about the China debt default. Took a key step in Europe’s debt crisis, under domestic policy fine-tuning, end-market policy. In the sales tax reform, increasing cultural industries as its pillar industries, stimulated by environmental Conference, waiting for news, culture and media, transport, environmental protection, retail sector, such as becoming a hot spot.

　　Market has experienced two quarters of the adjustment, CSI 300, Shanghai a-share price-earnings ratio (General Law) created 10.905 times times that to record low values, valuations obvious advantages, usher positions opportunities. Recommendations focus on steam coal, environment, culture and media, coal chemical industry, decorative, home textile sector. (The country stock Liu Zhenju)