Global markets are up around the world, on news that China’s Industrial measures were higher.
David Rosenberg writes:
It really is a whole new investing world when a Chinese manufacturing diffusion index can generate a gigantic melt-up in equity prices across the globe. But that is indeed what is happening. Even in the face of GM’s imminent bankruptcy filing, the news that China’s purchasing managers’ index came in at 53.1 in May from 53.5 in April (the CLSA comparable was 51.2 from 50.1) was enough to kick the MSCI Global index up 1.4% to its highest level since last November (markets had been led to believe for the past few weeks that a sub-50 reading was quite possible).
Emerging markets advanced 2.6% and now up 55% from the lows. Russian equities soared 5.8%, helped out by the rising oil price (page A2 of today’s WSJ contains a healthy dose of scepticism over the longevity of the oil price rally given lingering weakness in global crude demand). Asian equities climbed 2.9%, led by a 4.0% surge in the Hang Seng index to 18,888 (now how lucky is that?). But gains were broad based right across the continent, with Japan up 1.6%, the Kospi rising 1.4% and the Shanghai index rallying 3.4%. European marts are up 2.7% (up now in five of the last six sessions) and again, practically every country is flashing green.
Does this ring true?
And, can we trust the data any more from the godless Communists in China any more than we can trust the data from the god-fearing socialists in the USA ?
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