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By the Numbers

September 13, 2010 – 5:09 pm

The up market today is a result of China’s reporting over the weekend better than expected economic numbers. Industrial growth in August increased to 13.9% from 13.4% in July, textiles jumped 11.6%, chemicals up 12.9% and machinery rose to 20.1%, all numbers better than expected. Retail sales were up to 18.4% growth, up a half percent from July and finally fixed asset investment in China’s cities surged 24.8% on a year to date basis.

There was a down side of all that strength and that was inflation which jumped to 3.5% for the CPI. It was lead by food prices that were up 7.5%.
However, these numbers certainly put a rather large dent if not destroyed the fear that China was softening in its economic strength and that leads one to believe we here in the U.S. will not fall into a double dip recession.
Of course China is just one piece of a larger puzzle but it is an important one. However, out over the weekend the European Union raised their GDP growth projections to 1.7%. That is a rather large adjustment and another piece of the world puzzle that is gaining strength.
The double dip recession fear is receding fast as it should.
Good Trading
Steve Peasley

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