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Post: Wednesday - Chinese data continues to put a drag on the world markets. | Daily Delphi

BlogsPit Talk › Wednesday - Chinese data continues to put a drag on the world markets. March 12, 2014, 6:50 am

CALENDAR
6:00 AM CT
MBA Mortgage Index for 3/08
Prior 9.4%
9:30 AM CT
Crude Inventories for 3/08
Prior 1.429M Forecast 2.0M
1:00 PM CT
Treasury Budget for Feb
Prior -203.5B Forecast -195B

TUSDAY RECAP

Copper was the story of the day yesterday, because every day needs a headline. The industrial metal has dropped 8.1% over the last three trading sessions. Yesterday's selloff in copper also happened to coincide with the break in US equities. The breakdown in the price of copper is tied to the fact that the poor economic data coming out of China signals a coming lack of demand. And everyone knows -the global markets listen when China gets the sniffles.

TODAY'S ACTION

Overnight Asian stocks took a hit as fears over China's growth continued to mount. Europe's major indices are trading lower on the same fears and continued worry over the situation in Ukraine. In the US there isn't much on the economic calendar so expect traders to look abroad. China's poor February trade data from earlier in the week, the revelation that the country has had its first-ever corporate bond default and the fact that the Chinese central bank has allowed its currency to fluctuate more than usual are all starting to put strain on the global markets. That news taken with the uncertainty in Ukraine will make for a weak start to the trading day here in the US. Without much data to look at throughout the day the markets may very well stay on the defensive throughout the session. Trade strong.


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