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Two Ways: World Bank Sweet and Sour on China

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Strengthen your portfolio in good times and bad.

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World Bank Sees Higher Growth in China

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

Economics

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!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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