A grain of good news today as Moody’s backs China’s ability to rebalance successfully. From the FT:
China’s economy scores “very high” for economic strength and it should be able to maintain its high credit rating as the economy rebalances away from credit-dependent growth, said Moody’s in a new report.
And from the report:
Nonetheless, the success of policy measures will be critical for China’s ability to negotiate successfully the challenges which lie ahead.
To that end, the government’s unfolding policy approach that favors long-term stability over short-term growth provides support to China’s sovereign credit profile.
On second thoughts, that’s not good news given long-term stability over growth means less steel.
And on cue Dalian iron ore futures are down again today though not as far as rebar. Miners are all down sharply again.
