There is an oddity in reaction to the China Customs data released this morning. On the face of it, the decrease in both imports and exports ought to send more of shock through the minds of investors particularly as some
economists have downgraded their economic predictions for the balance of 2023.
In today’s recipe, we will learn how to send oil prices down by $10/bbl. Start with a good helping of inflationary pressures, a dollop of rising interest rates, a sprinkle of US banking turmoil, a spoonful of anxiety over a potential US default, and finish off with a dusting of weak Chinese data. Mix well, bake for four weeks, and voila!
It is cumbersome task to go through a wealth of conflicting signals and draw a conclusion whether the current investment climate suggests a sanguine outlook for the balance of the year or those who expect renewed strength will be left bitterly disappointed.
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