After 10 days of almost consecutive gains, US stock exchages indexes started to point mildly down. S&P went down TO 1,406, only 10% below the 1,550 plus record from 2007. All the analists say this id due to a weaker demand of raw materials from China, which in turn is slowing down…in exports.
In truth, this is not a big worry for at least one reason – the Chinese Communist Party is trying hard to get more purchasing power for the locals. Increasing the minimum wage and offering a minimal pension of 500 yuan should generate more consumption in a huge market craving for aspirational merchandise. To me it looks like a smart strategy.
So maybe one day soon the Chinese market will become larget than Europe – who knows?