Data released on Wednesday shows a continued decline in China's GDP, which began in April 2010, as shown on the graph below. There were only two quarters with lower GDP numbers since January 2009.
In addition, the Fixed Asset Investment, Industrial Production, and Retail Sales data (also released yesterday) showed a small improvement. The numbers, however, remain subdued at 2009 levels. Fixed Asset Investment in 2012 has been the lowest since 2005. Since it's a "leading indicator of economic health and changes in private and public investment levels can be an early signal of future economic activity such as hiring, spending, and earnings," this low level, combined with a still-declining GDP, does not signal a growing economy.
As can be seen from the Daily chart below of the Shanghai Index, price has rallied slightly, but faces resistance at the 2150 level. Not shown on this chart is today's close at 2131.69. So far, this is only indicating a rally and not a bottom yet. Price will have to break and hold above 2150, and we'll have to see a turn-around in declining GDP and continued improving data to be supportive of any such scenario.
Welcome and thank you for visiting!
The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.
DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...
UPCOMING (MAJOR) U.S. ECONOMIC VENTS...
* Wed. May 22 @ 2:00 pm ET ~ FOMC Meeting Minutes
* Thurs. May 23 @ 3:30 am ET ~ German Flash Manufacturing PMI (watch for a hold below 50)...N.B. Jan. 24 PMI came in at 49.9, Feb. 21 PMI came in at 47.6, Mar. 22 came in at 44.7 & Apr. 18 came in at 44.5 (contraction mode deepens!)
* Wed. May 29 @ 2:00 pm ET ~ Beige Book Report
* Fri. June 7 @ 8:30 am ET ~ Employment Data
* Wed. June 12 @ 8:30 am ET ~ MoM & YoY CPI & Core CPI Data
* Fri. June 14 @ 8:30 am ET ~ Core Retail Sales & Retail Sales
* Wed. June 19 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts and @ 2:30 pm ET ~ Fed Chair Press Conference
*** Click here for link to Economic Calendars for all upcoming events
NOTABLE POSTS WITH IMPORTANT UPDATES...