Last night, China printed 48.3 on the HSBC Flash PMI, but don’t tell U.S. corporations who call China a major market that China is slowing.
Any economic data from China is always suspect. But reports of richer purses at water buffalo fights could be considered — wait for it… a bullish indicator for the Chinese consumer.
Who prevails over all others is not necessarily the fastest, the strongest or even the most intelligent; but the most flexible. This is why companies with a strong presence in the smartphone market such as China Mobile (CHL, quote), Apple (AAPL, quote) and Samsung (SSNLF, quote) are in powerful positions.
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.
Between the latest rare earth news and lingering dismay over shifting trade balances, China is at the center of every trader’s world right now. We talked about it today on Trading the Globe.
A three-day rally has traders wondering whether the emerging markets are safe to dive in again. We lay out both sides of the argument on today’s installment of Trading the Globe.