Yesterday afternoon’s Chinese data for November goes a long way to explaining the behaviour of commodity prices. China is firing on all cylinders now with stimulus that had juiced the supply side now flowing over demand as well. The growth internals were as expected with YTD FAI in at 2.6%, Industrial production at 2.3% and retail sales -4.8%:
But it is year on year growth that gives the true read with retail up 5% and industrial production up 7%.
On the supply side, investment is recovering for both public and private:
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