China Industrial Commodities Collapse As Sentiment Tumbles To 15-Month Lows

Jon Alternative Media, Blogosphere, Economy, Government

Unlike the QE-lite-driven exuberance in Chinese stocks of the last few weeks (which faded dramatically overnight), China’s industrial commodities (with near-record inventories) and seeing prices collapse. This may shock some who espy PMIs and government-created trade data and proclaim, China is fixed. In fact, as JPMorgan’s China Sentiment Index (JSI)shows, things are anything but bright as it fell to the lowest since June last year (at 48.3 in August). Sales and margins are tumbling – despite supposedly lower input costs. Lastly, those focused on spot Yuan movements (strength in recent weeks) have suggested this also confirms China strength – inflows – but looking out 12-months shows the market is expecting a dramatic devaluation from current levels in the Chinese currency is coming.

This post was published at Zero Hedge on 08/26/2014.