Upbeat China PMI boosts Asia equities, Aussie; oil up on Iraq

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Duffminster wrote:

The hype for why the market is up is because a single private report is saying the Chinese Economy Manufacturing barely exited contraction for the first time in 6 months. Looking at the much broader metric, the Chinese Beige Book, also just released paints a much different and I would argue, accurate picture:

“…China Beige Book Shows Economy Slowing on Investment…” – Bloomberg/Businessweek:

http://www.businessweek.com/news/2014-06-22/china-beige-book-shows-economy-slowing-on-investment

“…China‚Äôs economic slowdown deepened this quarter, as capital spending showed weakness and fewer companies applied for credit, a private survey showed.

Half of businesses reported higher investment, the smallest proportion and the sharpest drop since the survey began 10 quarters ago, according to the China Beige Book, a report published quarterly by New York-based China Beige Book International. The slowdown hurt hiring and wages, and interest rates offered by shadow lenders fell below levels offered by banks, it said….”

Jun 23, 2014 3:12am EDT  --  Report as abuse
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