China manufacturing index contracted for the first time since October 2012. That suggests global economic consumption remains weak. China’s latest round of credit stimulus has done very little for the Chinese economy, apart from exacerbate it’s imbalances for no discernible benefit.
The global market situation feel like tectonic plates bumping up against each other…sooner or later it will cause a major earthquake.
As the Australian mining boom ends, China has a reduced appetite for our commodities. This effects our terms of trade, which has an effect on national income.
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