Unfavorable factors are aplenty for equities - in the United States, Europe and China. Europe's outlook remains gloomy and US employers added the fewest number of jobs in March, when both consumer and producer prices eased in China. On the bright side, Beijing may further lower the amount of money banks are required to keep as reserves.
Also, more asset purchases are likely ahead of the US presidential elections in November.
Dow constituent Alcoa's first- quarter earnings could be an indication of business prospects for US firms. In the currency markets, the greenback has gained a bit recently, though the main reason is the weaker euro.
Gold has been volatile. The bulls are buying and the charts suggest the uptrend will continue in the long term. Hold onto your long positions.
Locally, Zhaojin Mining (1818) shares have fallen more than 30 percent from their peak to near a 52-week low. Below HK$12, the stock is quite attractive. Dr Check and/or The Standard bear no responsibility for any decision made based on this column.
