Sunday, September 26, 2010

Inches away from an Asian/US trade war (update 5) - Tarrifs on

"Sentiment remains bullish in the domestic market which has pushed up the Hang Seng Index up by around 250 points so far this morning. However, on the interest rate front, a cautious approach prevails as China has issued a final ruling to collect anti-dumping tariffs over US chicken products ranging from 50.3% to 105.4%. The ruling comes two days after the US House Ways and Means Committee backed a bill to allow US companies to seek tariffs on Chinese imports if China doesn’t allow the Yuan to appreciate to an appropriate value. The US House will vote on the bill Wednesday. Traders are worried about a full blown trade war. Ahead of the National Day Golden Week in China starting this Friday, players are hesitated to open new positions"

Watch high yield positions

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