in about 15 minutes (from abouy +5).
Something good somewhere just happened.
Is it too much to ask to have one good trading day of positive follow-though?
Like with any market data, the market has an expectation. China Industrial Production was expected to drop significantly. Instead it rose. Hence the futures activity and likely indication of strong reversal tomorrow.
guys...Industrial Production didnt decline from last month's 13.3 but instead rose to 13.5. Compared to the US, this is a complete opposite, as US Industrial Production has tanked in May/June. China has continued to grow, which is different than the market was pricing in. Markets assumed a global market downturn but in reality it is only a US softpatch. Markets will adjust to this data. CPI is not the driver behind the futures activity.
Futures still climbing from initial levels after the data was released
This marks a 32 month high in Chinese inflation. Which means the pboc will hike rates in the next few weeks.
The market reaction is very odd.
Only thing can think of is that some speculated that it could come in over 6%, even though official expectations were 5.5......so....the news is as bad as predicted but not catastrophic.
Lol...any excuse to rally I guess.
too bad the "fake" rally has a "hard dollar" reality eh? Not so fake when you look at your brokerage account.
Your a fool to assume a rate hike the numbers were not that "hot" they were under expectations.
Like i said, not too hot not too cold, just right.
Industrial Production has been falling in the US and thus fears were we would see a huge drop from China as well. Instead, we saw a rise. The market was pricing in a world economic downturn, but instead its just a softpatch in the US. US companies with operations oversees (~ large % of the DOW) will get a big lift that their oversees operations are not declining. A true-up from the past 2 week's assumptions now must be priced into the market. This is good for a 2%+ recovery tomorrow based on new data.
Side note: CPI data in China was near flat (under expectations) thus no heavy rate increases expected for now. Lots of positive news coming out tonight.
China Cpi numbers just hit, up from April's 5.3 to May's 5.5..
Why futures would pop on the news makes no sense. All this is gonna do is force the BOC to raise rates sooner, which will hit growth globally...
Futures 'pop' because the fed will use any plausible 'news' to jack them to the moon. It doesn't matter if it makes sense or not. It hasn't for at least 2 years now. It only matters that they go up. They are up, literally, every night.