China A50 Index: Relatively strong in October within global indexes

The China A50 Index rose 3.8% in October, which outperformed the global indexes, such as Dow Jones (-4.27%) and Euro Stoxx 50 (-7.29%).


The China A50 Index rose 3.8% in October, which outperformed the global indexes, such as Dow Jones (-4.27%) and Euro Stoxx 50 (-7.29%). In fact, China's economy has shown the gradual recovery signal. on the economic front, China's official Manufacturing PMI rose to 51.4 in October (51.3 expected) from 51.5 in September and Non-manufacturing PMI climbed to 56.2 (56.0 expected) from 55.9, according to the government. Besides, Caixin China Manufacturing PMI rose to 53.6 in October (52.8 expected) from 53.0.

Investors should focus on the October Caixin Non-Manufacturing PMI (55.0 expected) and the trade data ahead of this week.

From a technical point of view, the index remains holding above the 50-day moving average after breaking above the declining trend line drawn from July. The relative strength index is also supported by a rising trend line drawn from February. 

Bullish readers could set the support levels at 15380, while resistance levels would be located at 16485 and 17550.

Source: GAIN Capital, TradingView

More from China A50

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.