The rebound in the Chinese indices has continued today, with China's CHN.Cash currently gaining nearly 2% on an intraday basis. The increases are mainly the results of the unwinding of the recent dynamic declines and comments from the Chinese establishment, which announced that it intends to use around $300 billion from the foreign accounts of state-controlled listed companies to support the current difficult stock market situation. In addition to this, China is also expected to use domestic funds to buy heavily depressed stocks.
Moreover, today the PBoC governor announced his intention to cut the reserve requirement ratio (RRR) by 50 basis points on 5 February. The weighted rate before the cut was 7.40%. In effect, this will free up 1 trillion yuan in the economy.
As a result of these comments, CHN.cash rebounded sharply and has now opened up to test the resistance levels set by the 78.6% Fibo retracement of the upward wave initiated in November 2022 and the 50-day exponential moving average (blue curve). The main support level all along remains the local minimum of 22 January 2024.
Source: xStation
US100 down 1.5% amid rising inflation fears and geopolitical tensions
Morning Wrap: Trump want to send Iran "back to the Stone Age". Indices tumble (02.04.2026)
Daily Summary - Markets Await Trump's Address
🔴US100 Caps Gains Following Trump's Comments
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
