Tyler Durden over at Zero Hedge reports the bad news from China:
The debate of China’s double dip may have just been sealed after the “Conference Board corrected its April gauge for the outlook of China’s economy, saying its leading index for the country rose the least since November, rather than registering the biggest gain in 14 months. The gauge compiled by the New York-based research group rose 0.3 percent, less than the 1.7 percent gain reported on June 15.” Ignoring for a second the fact that such massive swings in amplitude imply either a malicious data misrepresentation intent or weapons grade stupidity, the second derivative in Chinese growth has now peaked, just at the time when the country for whatever optically political reason decided to unpeg its currency. We are now looking forward to the official rescinding of that decision, and a resumption of the peg…
That is rather amazing, isn’t it? Not just a small adjustment, that – its like a night and day difference in the data. Normally, I’d like to think this represents weapons grade stupidity, but I’m concerned that economic data might be manipulated these days. At any rate, manipulated or not this news beat the heck out of Asian stocks in Tuesday trading, while at this time (2:34 am EDT), US stock futures are in the dumpster. Might be a long day on Wall Street.
But even if this is shrugged off or masked by happy talk from other areas, its going to be a long year or two for everyone.
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