The China markets continued extending out sideways in yesterday’s trading as several high impact economic numbers are due out later this week, and the world watches the fascinating machinations on the political landscape in Europe.

Both the China indexes- The Shanghai A and B shares were flat in yesterday’s trading- each down far less than 1%.

The IPI stats are due out soon- measuring the amount of output from the manufacturing, mining, electric and gas industries. The prior reading was an increase of 13.8%. The IPI number will go a long ways towards indicating the level of slow down in the Chinese economy’s manufacturing and export sector.

October’s CPI should also be out later this week- the measure off the all important inflation number.

In an ideal world, we’d like to see a very moderate drop in the IPI number, coupled with a continuing drop in the CPI number showing inflation has peaked and is coming down. Goldman Sachs is out ahead of all of this information, recommending investing in China stocks now.

While exports from China to the developed nations are shrinking, demand from Japan has soared in the earth quake reconstruction era, and exports to Africa and Latin America are growing as well.

McKinsey company also reports optimism amongst Chinese consumers is growing, and most Chinese believe their income will grow in 2011 as compared to 2010.

That’s it for today. Back tomorrow.