Chinese data this week have not continued to surprise to the upside. They disappointed instead.
Longer-term higher Chinese demand suggests upward pressure will continue for commodity prices, even if prices ease in coming months.
Wall Street took a breather as capital raisings began to become the order of the day. Dow down 150.
China is now rapidly becoming Brazil’s top trading partner, at the expense of the US.
The Coppock Indicator has generated a similar signal for Chinese shares as it did for the Japanese Nikkei in April.
The ASX 200 might be up 25% since early March but commodity prices have been recovering since late last year. Do we really believe the global economy is about to bounce back into rude health?
The S&P 500 turned positive for 2009 last night as healthy economic data fuelled further optimism. Dow up 200. (Locked for subscribers until 10:00)
Wall Street shook off an ugly GDP and clutched on to the Fed statement last night. Dow up 170.
The Chinese economy apears to be recovering but while this is a positive for commodity prices Westpac suggests a sustained recovery won’t occue before the rest of the global economy also recovers.
As Western economies struggle with the GFC, China is emerging to challenge US hegemony faster than even China may have thought possible.