Some observers are welcoming China’s shrinking trade surplus as a sign the country is finally rebalancing its economy to move away from export dependence and consume more imports. But China’s imbalances have actually worsened.
The government of Ukraine has seized the only alumina plant in the country from nominal owner Rusal — the world’s biggest aluminum producer — but while Rusal is fighting to regain control of the smelter, the only impact this could have on the company’s rivals is negative.
While we are watching the impact of slowing Chinese growth forecasts on aluminum stocks today, the impact on luxury retail in Chinese cities seems negligible so far. Plus: Boeing and oil prices.
Earnings season is upon us and the biggest cause of concern for the markets comes from China, which reported gross domestic growth of 9.1% for the third quarter.