China and Emerging Markets

Weak manufacturing data, the Israeli attack, hurricane forecasts, and a growing appreciation of the extent of the Gulf oil disaster weighed on markets last night. Dow down 112. (Locked for subscribers until 10:00 AEST)

As May’s Chinese manufacturing data are released, analysts question the Chinese property “crash”and the the risk of China now drawing on its own commodity stockpiles, rather than buying more.

Investors are currently nervous and FY11 earnings estimates may be too high but Citi still sees value in equities at current levels, while GSJB Were outlines its current preferences.

With no UK or US markets last night, attention turned to whether Europe would react to Friday’s after-market Spanish downgrade. It didn’t.

A glance through the latest expert views and predictions about commodities, with reasons to like Aussie iron ore plays and an update on the feriliser market.

A brief look at important company events and economic data releases next week.

It only needed China to deny it was looking to dump the euro to release pent up buying demand last night. Dow up 284. Aussie surges three cents.

Wall Street opened stronger last night, but ultimately closed lower, as the rumour mill churned and the euro pushed toward previous lows. Dow down 69.

Without the North’s backing of China, Danske Bank cannot see a war erupting on the Korean peninsular.

The Dow opened down nearly 300 points as Korea entered the mix before a rolling wave of buying took the average back to only down 22, and the S&P into the green.