Wednesday, April 18, 2012

There is no...

..."in fact" when it comes to the Paper Dragon. Market commentary that simply takes what the CCP publishes as "fact" is doubly suspect. This came across my desk, and I normally don't take a second glance at such things, but forearmed is forewarned. (emphasis added)

The copper’s strong acceleration in January, when the metal gained about 11%, was blamed to good economic news. In two months the macroeconomic environment has quickly changed, in fact last week sharp fall was caused by Chinese gross domestic producer data. In fact China’s economy expanded 8.1% percent in the first quarter from year earlier, disappointing consensus expectations of an 8.4% outcome. This data is the lowest in almost three years and strongly weighted on the copper, seen China is the first consumer of this metal, absorbing 40% of total production. Yesterday International Monetary Fund, which boosted its growth outlook, restored copper’s strength.

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