North American, European and many Asian markets show signs of recovery, but the Shanghai Composite is headed for a test of primary support. A primary down-trend would seriously impact on demand and prices for basic commodities, of which China is the primary consumer — with a knock-on effect on resources stocks in other markets.
Commodities & Resources Stocks
At present the Baltic Dry Index is recovering, breaking through resistance at 3300 to signal the end of the latest correction. The surge in shipments of bulk commodities is good news for resources stocks, but the HARPEX container freight index remains extremely low, indicating that manufacturing exports lag way behind.
So...the world needs the China's markets to push them higher if not then the market everywhere will be at their knee and beggaring for help just like the PIGS countries
eg Greece.
With this in mind...China is going to be important player with huge mussel
ReplyDeleteMussel???? like in sea food thingy? hehehe....
ReplyDelete