This last week markets rallied on the knowledge that some pre quarterly reports were better than expected. Business was booming on Wall St with the DOW pointed towards 10,500 once again.
China is of course a major component of the world economy. When Chinese exports are flying off the shelves, investors have a strong indication that the rest of the world is buying. They like to see money flowing.
Regardless, the notion that the world economy is not stalled and is improving was given a boost. New data from China shows that Chinese exports are growing, demand is increasing. This simply means that the rest of the world is buying and that there is money to spend. Its that simple, and the investment class loves it.
Armed with this information, one might suspect that the equities market will hold for now and that the double dip at least from the Wall St perspective, not the main street perspective, will also be on hold. Of course that is an optimistic take.
Reuters: China shrugs off global fears with export strength
Chinese exports in June rose 43.9 percent from a year earlier, beating forecasts of a 38 percent rise, the customs administration said on Saturday. Imports rose 34.1 percent year on year, in line with projections.
That left China with a trade surplus of $20.0 billion, its largest in nine months. The market had expected a surplus of $13.8 billion.
"Exports were better than expected because the negative impact from the European debt crisis was not as serious as the market had feared..."
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