Two Ways: World Bank Sweet and Sour on China
Strengthen your portfolio in good times and bad.
Today, the World Bank raised its economic forecast for China saying the world's third largest economy will grow 7.2% this year due to the government's economic stimulus efforts. But it also cautioned that it's still far too early to say whether a "robust sustained recovery" is on the way because private investment will likely continue to lag.
In a story by The Wall Street Journal the World Bank also raised concerns about the country's increasing debt burden. It is predicting China's budget deficit to be 4.9% of GDP this year, higher than its prior forecast of 3.2% of GDP and the government's forecast of 3%. Some believe the higher the debt burden for 2009 means there is less maneuverability for the Chinese government in 2010.
From the Bull Pen: For a Chinese play, consider PetroChina (PTR). The stock has been on a tear since breaking above $90. One option is to start an initial position here, and fade (read: buy) into support near $100. A sell stop can be below that level.
From the Bear Cave: Bears can keep an eye on SINA Corp (SINA). Watch for failure at gapfill at $33. One can play the downside, if and when it gets to that level.
Quick Check Around the World
Asian trading closed with the Hang Seng -1.70%, India -1.77%, Shanghai 1.56%, Nikkei -1.39%, and Taiwan -0.83%.
Glancing towards Europe, we see the FTSE -0.27%, CAC -0.34%, DAX -0.17%
As of 8:25 AM EST, S&P Futures are trading -0.9 to 904.40 and Nasdaq futures are -6.0 to 1447.50.
A Look at Commodities
Over in commodities, crude oil is trading -0.53 to 70.50 while gold is +1.50 at 937.50 this morning. Silver is -0.700 to 14.21 and copper -2.85 to 223.10.
The dollar index is -0.025 to 80.5500.
On the Radar
08:30 Initial Claims
10:00 Leading Indicators 0.9% cons
10:00 Philadelphia Fed 1 -16.4 cons
Click here for the full trading radar.
Good luck today!
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