This surprise move by China is a bullish factor for most raw commodity markets, as China is a major raw commodity consumer.
FORBES: Comex Gold Weaker but Up from Daily Low After China Rate Cut; Bernanke Awaited
There has been a string of weaker data coming out of commodity-consuming juggernaut China, and that has the commodity market bulls a bit worried.
FORBES: Comex Gold Lower, Hits 9-Week Low, Amid Bearish "Outside Markets"
And while that holds a host of problems for things like commodity demand, China is still building.
FORBES: China Still On Track To Beat Government's 7.5% Target
His first venture was selling medical equipment, before switching to trading precious metals, as well as wine, when demand for that commodity boomed in China.
FORBES: Beijing Hold 'Em: VIP Poker Seeks A Toehold In China
The commodity story of China being the demand force for oil, minerals like iron ore and agricultural commodities is still in play, but savvy fund managers are turning inward along with the Chinese government.
FORBES: Two Funds to Profit Off China's Growing Middle Class
"A further slowdown in China would affect commodity exporters in the region particularly strongly, since, with the exception of Timor-Leste, China is their major trade-partner in commodities, " the World Bank said in its latest report on the region.
The weak dollar means higher commodity prices, and China is the leading importer of raw materials.
The move by the commodity-consuming juggernaut China was not a big surprise, as its monetary officials are working to control inflation by curtailing domestic consumption.
FORBES: Comex Gold, Silver End Solidly Higher on Fresh Safe-Haven Demand
Right now that list includes most of the Middle East (with Saudi Arabia topping the list), gasoline prices and how the consumer will react, the tightening campaign in places like China, commodity inflation, Ireland, housing in the U.S., banking almost anywhere in the world, the state of the economic rebound, etc.
Asian stock markets fell on the China news, while raw commodity markets, including gold and silver, were also seeing some selling pressure on the weak China data.
FORBES: Gold Weaker amid Bearish Outside Market Forces; Bulls Still in Technical Control
Asian stock markets fell on the China news, while raw commodity markets, including gold and silver, also saw some selling pressure due to the weak China data.
FORBES: P.M. Kitco Metals Roundup: Gold Ends Near Steady; Gains Limited by Stronger U.S. Dollar
If commodity prices decline, then China and India will be faced with less imported inflation.
Lower oil and commodity prices ought to benefit China and India, by lowering import bills and assuaging worries about inflation.
ECONOMIST: Emerging countries are not the havens some people thought
He said aluminum demand has hit new highs and an internal deficit in the key commodity-consuming nation of China is widening.
FORBES: Stable-Higher Aluminum Expected From Participants, Delegates At Conference
But if Brazil wants to move beyond being simply a commodity provider, or if China's growth slows and it demands fewer Brazilian resources, then what?
Australia's deep economic linkages to booming China via its commodity exports mean that the RBA is unlikely to reverse its policy stance in the near future.
In Australia the slowdown in housing did make a big dent in construction and consumer spending but this was masked by the commodity boom and exports to China.
Persistent relative strength in emerging economies, especially China, suggests that commodity prices will stay stable or firm.
Fueled by high commodity prices and surging demand from China, Latin America's economies are enjoying a renaissance.
That, in turn, would have conferred upon them unwelcome pricing power over a commodity that is particularly crucial to China's economy.
The economy of China, a key commodity consumer, is also slowing but nevertheless remains robust compared to the rest of the world, with the government last week reporting 7.6% growth in the second quarter.
Indonesia enjoys a big cost advantage over its main competitor, Malaysia, as it does over Australia in coal for power stations, another commodity where demand, led by China and India, is expected to grow hugely.
Stock markets sold off, a Credit Suisse report concluded that the commodity super-cycle underpinned by China has drawn to a close, and economists worried about the implications for the already slow economic recovery in the United States.
Many sharks perish as bycatch, but increasingly they are being hunted for their fins, a delicacy in China and a lucrative commodity. (The annual export of fins is thought to be worth about a billion dollars.) One study, published in Ecology Letters last year, estimates that between twenty-six million and seventy-three million sharks are killed for their fins every year.
But if commodity demand is any indicator, the China dragon is still hungry for raw materials.
In turn, if prices stay strong, so will China's exports to commodity-producing countries.
However, this news will likely be pushed to the back burner quickly because China remains an major raw commodity consumer and an economic juggernaut.
FORBES: Comex Gold, Silver Firmer in Wake of China Monetary Policy Tightening
Investing in product development around the world, including China, Ford faced higher commodity and structural costs, while it saw sales increase and it paid off its debt.
FORBES: Ford Working Its Way Back To Health, Pays Off Debt, Sells More Cars
Nonetheless, some specific commodity growth stories don't depend on China for a happy ending.
应用推荐