With the world distracted by a Brexit this week, Jim Cramer has watched China suddenly gain amazing strength.
"We've got a crouching tiger, hidden by Brexit scenario … strength that has been ignored as investors focused on all of the Brexit related capital destruction," the "Mad Money" host said.
As the world's No. 2 largest economy, China matters a heck of a lot more to Cramer than the U.K., which is the fifth largest economy.
China's strength has manifested via a 2.7 percent rally in the Shanghai composite and multiple positive days for the Baltic Freight index. This suggested to Cramer that China is importing raw goods. The rally in oil and rebound in copper also indicated that China has increased demand.
There were two additional reports on Tuesday that translated to Chinese strength for Cramer. The results from both Carnival (NYSE: CCL) and Nike (NYSE: NKE) were evidence of acceleration in Chinese consumer spending.
Both companies have brands that typically cost more than most Chinese people could have afforded five years ago. Sale were spurred by a migration out of the country into the city, Cramer explained, where consumers could make more money. This was also the catalyst for Apple (NASDAQ: AAPL) sales in China.
On the company's conference call, Carnival CEO Arnold Donald confirmed China was the strongest region for the company.
Nike also confirmed that its leading growth maker was China, as it experienced a 44 percent increase in Chinese direct-to-customer sales.
"There is no denying that the global financial system is in worse shape ever since the U.K.'s Brexit vote … but the same apparently cannot be said for China," Cramer said.
The data all added up to China being up, not down for Cramer, as he speculated that this could be the reason why the blow of a Brexit seems to have softened.
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