2/ China's housing market experienced its largest contraction in over a decade, despite efforts by the Chinese Central Bank to ease monetary policy pic.twitter.com/S8gVYVdz5W
— Game of Trades (@GameofTrades_) July 6, 2023
4/ Majority of demand for copper, an industrial metal, comes from China
Weak copper prices suggest a slowdown in China and the global economy pic.twitter.com/BZwvKPpUxs
— Game of Trades (@GameofTrades_) July 6, 2023
6/ Despite large stimulus packages, China's 1-year government bond yield has been on a downtrend since Feb 2023 pic.twitter.com/PIjaTbkT5U
— Game of Trades (@GameofTrades_) July 6, 2023
8/ China's P/E ratios are historically low compared to the U.S.
Reflecting investor skepticism towards China's stimulus and recovery efforts pic.twitter.com/rlPyiCU2VY
— Game of Trades (@GameofTrades_) July 6, 2023
10/ Unlike in 2009, 2016, and 2020, China is currently not showing signs of an economic recovery pic.twitter.com/vcRzJFyU1F
— Game of Trades (@GameofTrades_) July 6, 2023
12/ A slowdown in the Chinese economy is a major headwind for the the US economy
But it can also be a big hit for Europe, with negative spillovers to the US pic.twitter.com/qVcpwO61Op
— Game of Trades (@GameofTrades_) July 6, 2023
14/ The Euro area manufacturing PMI has hit levels reminiscent of the C-19 and the Financial Crisis
Signaling a rapid deterioration in Europe’s manufacturing sector pic.twitter.com/4LeYqag4eS
— Game of Trades (@GameofTrades_) July 6, 2023
16/ A strong China is crucial for the global economy and markets to sustainably grow
But Chinese economic data has been deteriorating rapidly, an ominous sign for US and European markets
— Game of Trades (@GameofTrades_) July 6, 2023
18/ Thanks for reading!
If you found this thread valuable, please ❤️ and 🔁 the first tweet below
And follow @gameoftrades_ for more market insights, finance and investment strategiest.co/V7zl0uag1o
— Game of Trades (@GameofTrades_) July 6, 2023