I am still thinking about that weak Chinese Mfg PMI released yesterday. Is the market so focused on resolution of debt issues that it completely missed the weakness in China? Or is the market happy about the end of Chinese rate hikes, due to slowdown? Or is there not enough data to conclude the view? Well, we now have two back-to-back declining PMIs, with last one below 50 (expansion/contraction pivot).
CAT reported this morning. Management said that they see "softening of growth in China".
Too early to worry about it? Perhaps... But keep your eyes on Chinese data in the next few weeks to see if the trend develops. Huge economy with even larger world implications. We all greatly depend on the health of Big Panda.
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