China’s economic bounce has continued so far into Q4 as evidenced by both the October state enterprise and private sector weighted manufacturing indices which rose to the highest level since April ’08. There will also likely be no change in economic policies for the foreseeable future according to the Minister of Commerce as he believes the global recovery is still fragile. While China cannot single-handedly lift global economic growth, it clearly remains the most important country in the world in terms of driving economic activity which so far as spilled over into many other countries via trade. The US markets this week will get plenty of economic data from which to trade off with the ISM particularly today and also an update of the current state of mind of the FOMC on Wed. Will rates stay at “exceptionally low levels” for “an extended period”?
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