Monday, December 27, 2010

Morning start...fkli soft 1513-15 fcpo soft 3650+

Eyes on China after 2nd R% hike this year. No major reactions. Regional +ve tone, within +0.5%. DJ futs, -50, and commodity weaker tone, -0.5%. HK clsed for holiday today.

fkli : seen taking neutral to softer tone, 13-15 ahead of fbm. Hard to imagine strong upside today, > 15. but defensive play at 1510.

fcpo : initial reaction to China R% increase. fcpo goes defensive again, testing recent lower band of 3640. looks like 3620-50 range. fresh upside momentum seee if above 3670.

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