Commodities, Chips and China in focus amid China's closely watched third plenum

With China's Q2 GDP softer than expected at 5% (down from 5.3%), we anticipate possible stimulus announcements and will closely monitor commodities, commodity companies, AI, and chip companies should we see further and more defined stimulus. So keep an eye out for stocks such as Tencent $TENCENT (00700.HK)$ to potentially win amid AI/ data centre stimulus, and stocks such as Fortescue $Fortescue Ltd (FMG.AU)$ and Buffett's Occidental $Occidental Petroleum (OXY.US)$ that could be seen as oversold and benefit from infrastructure stimulus.

- Commodities: Copper, aluminum, iron ore, coal, oil, Lithium, silver, gold

- Watch Fortescue $Fortescue Ltd (FMG.AU)$ for pro-China and pro-iron ore. FMG $Fortescue Ltd (FMG.AU)$ is unloved, and its shares are down 22% from its recent high, and investment banks think it will fall another 10% (consensus). Not one broker has it as a Buy, given 91% of its revenue is from iron ore and the iron ore price is down 18% this year. And 90% of Fortescue's income is from China, whereas BHP and RIO are more diversified. Fortescue is expected to pay a forward dividend of 13.22%, so don’t dismiss it.And do consider, that If China announces infrastructure or data center stimulus, the iron ore could move up off three-month low territory. And its shares would see a great swing than BHP or RIO given FMG is pegged to China and iron ore.

- Watch BHP $BHP Group Ltd (BHP.AU)$ (for iron ore and copper).

- Watch AI and data centers such as Tencent $TENCENT (00700.HK)$ and keep an eye on Chip ETFS $iShares Semiconductor ETF (SOXX.US)$ and $Global X Semiconductor ETF (SEMI.AU)$ .

- Watch oil as oil market volatility is at its lowest level since June 2015. Watch Warren Buffett's majority owned Occidental Petroleum. Also, watch PetroChina.