The following articles note that the GDP growth for China has been reported at 7.5%, (in line with expectations) which has had a reassuring reflection on metal markets. The bigger question is, how accurate are these figures and where they published by the treasury department, or by a political PR machine? Dare I ask if they were the same people that published the “expectations”? All that said, with the world watching China for market indicators, the result may well be the same with these results bringing confidence to the market for the near term.
**** LME Metals Mixed, Investors Shrug Off China GDP ****
By Laura Clarke @ dowjones.com
0814 GMT [Dow Jones] London Metal Exchange metals are mixed, trading in narrow ranges with a quiet session expected ahead. Flagship metal copper shrugged off China’s second quarter gross domestic product growth, which came in at 7.5%, in line with expectations. China accounts for around 40% of the global annual consumption of copper. “[The] market might have entered summer holiday state…the room and possibility on the downside might be smaller than that in the upside,” says Newedge director of Asian commodity trading Richard Fu. The “market might be sensitive to any new announcement from China while the country is in the process of restructuring the economy,” he adds.
**** Copper Turns Positive; China Data Removes Concerns –Analyst ****
By Arpan Mukherjee @wsj.com
0301 GMT [Dow Jones] Base metal prices are in a tight range with copper moving into positive territory after China’s 2Q GDP rises by 7.5%. “I wouldn’t say it was a huge surprise to the upside, but what it did was remove some of the concerns that China was slowing much more than people thought,” says Sijin Cheng, an analyst with Barclays. She notes that the credit crunch in China during June was worrisome, but having a hard number that China was growing at 7.5% was “reassuring”. Going forward, China could take a backseat for the next few weeks, she says. She expects comments from the U.S. Federal Reserve about the future of its commodity-supportive stimulus program and strength of the USD will be main drivers. Cheng doesn’t expect copper to make a fresh push higher on the China data.