sentix ASR Essentials 11-2016
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20 March 2016
Posted in
sentix Weekly
Warming to Commodities and EM Equities; but cautious on Crude
Investors have become less downbeat on Chinese equities from a medium-term strategic perspective in recent weeks, albeit survey readings remain well down on twelve month highs. This chimes with a wider revival in sentiment towards Emerging Equity Markets as an asset class, as well as a more upbeat view among survey participants on the outlook for Commodities. A sustained improvement in commodity sentiment would be good news for EM Equities, given that sentiment on both asset classes remains closely linked. On this front, however, the survey also indicates investors have become less positive on Crude Oil from a medium-term strategic perspective, as WTI nears the $40bp resistance area (Charts 2-4, page 2).
