A rebound in U.S. stock market impact of adding variable geometry

the Federal Reserve efforts to a new round of quantitative easing concerns about lower than expected fight against global stock markets and commodity markets, the resources of A shares and financial stocks under pressure; the same time, China Ping sharp drop in third quarter net profit pessimism exacerbated the market , causing the weight plates pre-rally profit taking.

Analysts believe that the approach of the meeting with the G20, the dollar rally may be short-term, this volatility will continue to increase. However, the trend depreciation of the dollar will not change, resource stocks, the overall trend in prices is difficult to change the future, so adjustments should be phased.

　　U.S. markets bounce suppression

Continued after the storm after the National Day, A-share market ushered in a true sense of the adjustment, which means the end of Tuesday, down 1.46% Shanghai, the biggest single-day record drop in October. Analysts believe that the rebound in the dollar index may be one of the factors leading to market adjustments.

China Foreign Exchange Trading Center latest data show that interbank foreign exchange market on October 28 the central parity of RMB against the U.S. dollar as 6.6986, 6.6912, compared with the devaluation of the central parity on Wednesday 74 basis points.

Recently, the Federal Reserve will once again be expected to implement quantitative easing policy all the way down the dollar, the dollar index fell in just a half months of 8%. However, close to Fed policy meeting, the dollar market is changing attitudes. Intensity less than the expected injection of concern, according to suffice dollar downside.

27 According to overseas media reports, the Federal Reserve's policy meeting next week may be published on the progressive plan to buy bonds, and the injection of the size of the bond market is less than previously expected. Affected U.S. day trading session in Asia and Europe, continuation of the upward trend of the previous session, to achieve Erlian Yang.

Analysts say, A shares the main round to do more market driven by the resource stocks, the dollar rebounded pattern established, there is no doubt related to the stock will face greater pressure, and such stocks in the broader market in A shares than the weight large, the adjustment also tends to lead to an overall market fluctuations.

　　Reversal of the dollar rally?

This year, the U.S. dollar against the euro exchange rate has dropped by more than 3%; U.S. dollar against the Japanese yen tumbled more than 12%. But this week the dollar index has been strong for several consecutive trading days. U.S. 26 turned up by the fall, the euro lost momentum when approaching $ 1.40; yen also from the 15-year highs.

Not difficult to see, to be announced next week, easing the actual size of the future trend of the dollar into one of the factors. Despite the dollar's exchange rate against the euro and the yen's recent volatility is still within range of activities, but some traders believe that if the Fed meeting next week, announced easing to a more cautious than the market expected manner, which will benefit the dollar.

UBS Global Asset Management said on Tuesday, the market size of the Federal Reserve is expected to expand the quantitative easing against the dollar had a major impact, at present it seems that expectations have basic digestion; and because investors overestimate the impact of Fed policy of quantitative easing the U.S. dollar, or a certain bounce in the near future.