Some economic data we may have all over looked (heck it's a world away) is today's Chinese GDP data. By now we should all understand that the world economy no longer revolves around the USA (despite what the talking heads on CNBC would have you believe) it now revolves, and will continue to revolve around China. I think the late February "Dump Felt Around The World" on the mere suggestion that China may "tighten" lending rules is proof that the baton of world economic leadership has officially passed to China.
That being said, China's GDP came in a little bit ahead of estimates, +11.1% vs. +10.3% year over year. Quarter over Quarter it appears China GDP fell from +10.7% to +10.2%. We're sure to see headlines all day warning of China's "surging" or "Hot" economy. Yes, it is. And it should be the envy of the entire world economy. The Western Economies may actually fear a "surging" Chinese Economy, but that economy is what the Chinese want and need. For the Chinese Economy to mature and truly become the world's leader they NEED alot of domestic consumption to lift more of their population into their growing middle class. It appears they are succeding:
"GDP growth is faster than what the government has targeted, but I think it's quite normal, because consumption has picked up, which is good," said Lim Songli, analyst with Guosen Securities in Beijing. http://money.cnn.com/2007/04/19/news/international/china_gdp.reut/?postversion=2007041907
Volitility is sure to pick up on this data today. Be on your toes. Dips are buying opportunities. The US Dollar remains weak this morning trading down at 8:30 Am at 81.37 with the Euro over 1.36.
Forex - Yen rises as carry trades slow on strong China GDP growthForbes, NY - 3 hours agoChina's GDP grew 11.1 pct year-on-year in the first quarter, beating the People's Bank (nasdaq: PBCT - news - people ) of China's projected growth of 10.2 ...
Yen Finally Finds a Bid As China's GDP Exceeds 11 PercentDaily FX, NY - 2 hours agoThe release of the GDP numbers was delayed until after the equity market close, but trader’s concerns were well founded as Chinese GDP printed at 11.1% well ...
Shanghai copper eases, may rally on China GDPReuters South Africa, South Africa - 5 hours agoThe median forecast of 12 economists polled by Reuters is for China's GDP to have grown 11 percent year-on-year for the first three months of 2007. ...Metals - Copper drifts on concerns China might raise rates to cool ... Forbes
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