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A big divergence today between local miners and Chinese markets. The locals all tanked after this mornings horrible Chinese services PMI whereas Chinese iron ore and rebar futures both took off at that point and have since added to gains with no apparent news flow. Dalian is now up nearly 2% and rebar 1%. Perhaps steel markets are gambling on more stimulus.
Adding to mystery, the CSI300 is down 0.5% on the day.
There’s an arbitrage in there somewhere!
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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