From CNN Money we read that China now has a larger middle class than the USA. Their economy is the second largest in the world and is an ever increasing relevant input to trading decisions. So, it’s not a surprise that China has been making a lot of headlines recently. Its market has been all over the place with irrational evaluations of stocks and detrimental economic news. Further, PBOCs market manipulations driving a support in their markets. With the ever decrease in strength of China’s economy the world markets will be shaken.
Per Seeking Alpha:
- World shares extended losses today after consumer inflation in China eased more than expected, adding to list of concerns surrounding the world’s second-largest economy.
- The country’s consumer price index climbed 1.6% in September from a year earlier, against forecasts of a 1.8% rise and following August’s 2% gain.
- Meanwhile, China’s producer price index fell 5.9%, clocking its 43rd straight month of decline and recording its biggest drop since the depths of the global financial crisis.
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