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Two Ways to Play: World Bank Raises China Forecast


Strengthen your portfolio in good times and bad.


World Bank Raises China Forecast

The World Bank says China's economy will expand by 9.5% this year due in part to increased private sector investment, export growth, and domestic consumption.

According to Xinhua, the projection is up from the World Bank's previous forecast of 8.7% made last November and the 8% goal set by the government earlier this month.

The World Bank also forecast inflation to rise this year but it was unlikely to reach high rates due to excessive global capacity in supply. It sees the consumer price index rising by 3.5%-4% compared with the previous forecast of 2.8% and the 3% target set by the government.

From the Bull Pen: Allow me to point out the timely note from Professor Ryan Krueger yesterday on the Buzz & Banter, "China's exports to the developed nations (US, Europe, Japan) fell below 50%. Emerging economies are now over 50% of their customers."

Also, the Dow Jones Shanghai Index appears to have had a successful retest of its 200-DMA. So look to companies doing more business in China. Deere (DE) is one option. A potential triple-top breakout above $60 puts this stock in better position.

From the Bear Cave: If even the homebuilders ETF (XHB) can break out, then consider how nervous bears must be. The next major level of resistance for the S&P 500 (SPX) is 1200, or 120 using the SPY ETF. Consider downside entry if and when.

For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.

A Quick Check Around the World

Asian trading closed with the Nikkei 1.17%, India 0.61%, Hang Seng 1.72%, Shanghai 1.93%, and Taiwan 1.98%.

Across the pond, we see the FTSE 0.60%, DAX 0.76%, CAC 0.68%

As of 8:10 AM EST, S&P Futures are trading +2.250 to 1157.000 Nasdaq futures are +2.500 to 1930.75.

A Look at Commodities

Over in commodities, crude oil is +0.53 to 82.22 while gold is +5.100 to 1127.70 this morning. Silver is +0.166 to 17.520 and copper +0.0410 to 3.4070.

The dollar Index is -0.1150 to 79.8800.

On the Radar


08:30 Core PPI 0.1% cons.
08:30 PPI -0.1% cons.
10:30 Crude Inventories

Click here for the full trading radar.

Happy Hump day! Good luck!

No positions in stocks mentioned.

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