Friday, 22 May 2015

Financial Orbit wrap 21/05/15

Five sentences or graphics which sum up the Financial Orbit output over the last 24 hours across the website, twitter account and anything else thought about...

1. China - China HSBC Manufacturing PMI (May, P): 49.1 (exp 49.3 prev 48.9).  3rd consecutive months of sub 50. You have to say more interest rate cuts are likely.

However, MNI China Business Indicator registered its first month-to-month gain since December, rising from 48.8 in April to 49.7 this month - if you can get out your magnifying glass to spot it!!

What does all this mean for the Chinese market?  Well it should mean volatility increases - and judging by selected (usually Hong Kong listed) names moving around materially this is a-coming.  And then there is the leverage (as shown by this wonderful chart via @S_Rabinovitch)

2. I use my latest Yahoo Finance Contributors column (link here) to talk about sentiment...especially the amazingly neutral level of the latest AAII weekly sentiment survey:

3. I was not too impressed by the latest Lenovo numbers versus their historic strong level:

4. The Royal Mail looks like a solid dividend play (link here)

5. Keep an eye out for the new Financial Orbit Speaks which will be out shortly...

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