Fundamentals and Market Wraps:
US and Australia :
US producer prices fell 0.2% in June after a 0.9% rise the previous month,with the market expect of 0.1%.The long-termnet capital infows reached 112.6 billion ,reflecting the strong sentiment for the US economy ,though USD depreciating.
The Dow Jones Industrial index pushed throuth 14000 but failed to close above that level.Nasdaq stood above 2700,closing at 2712.29.We believe the better-than-expected economic data were the main supportors of today's rise.
Crude oil price dropped down by 0.2%,but still at very high status.
The US CPI(+0.1%) and Housing starts will be released tomorrow.
In Australia,the RBA Governor speaks on the 1997 Asian Crisis.
No major releases in Autralia.

China:
自2007年8月1日起，对三种矿产品资源税适用税额标准进行调整。This explained the recent weakness of related shares(铜都铜业等)。
PetroChina Co issued UBS as its IPO issuer,hoping that will return to A-share market in the 4th Q.
China burea of statistics decided to postpone the data of CPI releasement to Friday.We believe the data is at least equil to 4% and further financial policy will come at weekend.
Shanghai composite index rose by 0.87%,with higher volumes today.From our technical view,3931 is a resistance point ,though not powerful.We are not sure about the support level,but guess that the index will obtain support at 3760 if there is no suprising policy .

Shares commended:
中国石化：Future buy.As the Future IPO of 中国石油, and the sector movement in China,we believe 中国石油 's will push the petrol sector a lot (the most recent example is the Bank sector).Just keep it on the agenda.