A bullish cabal of investors was quick to call a bottom in China's cooling economy. Well, Chinese equity markets are getting hammered this morning on yet more unsavory economic data.
Here's analysis via Hedgeye CEO Keith McCullough in a note sent to subscribers this morning:
"China down hard overnight (Shanghai Comp down another -2.8% and -47% from 2015’s high) on terrible export (-1.8% y/y APR vs. +11.5% MAR) and import (-10.9% y/y APR vs. -7.6% MAR) data – we’re not in the everything has “bottomed” camp."
The China knock-on effect reverberated loudly throughout macro markets...
"After getting smoked for a -5.7% loss last week (Dollar Up, Chinese Demand Down), Copper is down another -1.3% this morning to $2.12/lb after failing to make a higher-high than the March “reflation” level of $2.31/lb"
What does it mean?
Despite Wall Street forecasters and Fed bureaucrats proclaiming "all is good" in the global economy, economic reality continues to prove the contrary. We're crystal clear on this...
The outlook for global growth remains decidedly bearish.