Despite the 500+ point drop in the DOW yesterday, China markets seem undisturbed. In overnight trading, the Shanghai A shares were up 1.28%, and the Shanghai B shares were up .45%. Not panic sell off in the China markets.
In overnight trading, commodities strengthened on the back of the Chinese currency rising to a new 17 year high- making commodities cheaper to import for the Chinese. Analysts are saying the Chinese can now import more commodities cheaper.
Analysts are starting to predict the Chinese could actually be looking to lower interest rates against the backdrop of the global slow down.
The IEA estimates global oil demand will shrink 60,000 barrels per day, – to 89.5 million barrels daily. China is expected to demand 80,000 barrels daily, down to 9.07 barrels per day. Japanese demand is expected to rise 70,000 barrels per day in 2012.
In 2010 China surpassed Japan to become the 2nd largest economy in the world. China will now surpass Japan this year to become the 2nd largest spender on media- spending $38.3 billion. $4.6 billion will be spent on digital marketing.
Watch LIWA for some action today. I’m expecting the 3rd party report to be released pre open.