{"id":24063,"date":"2017-05-24T20:26:42","date_gmt":"2017-05-25T01:26:42","guid":{"rendered":"http:\/\/olduvai.ca\/?p=24063"},"modified":"2017-05-24T20:26:56","modified_gmt":"2017-05-25T01:26:56","slug":"china-national-team-rescues-stocks-as-downgrade-crushes-commodities","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=24063","title":{"rendered":"China “National Team” Rescues Stocks As Downgrade Crushes Commodities"},"content":{"rendered":"

China “National Team” Rescues Stocks As Downgrade Crushes Commodities<\/a><\/h3>\n
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Iron ore led a slump in industrial commodities after Moody\u2019s Investor Service downgraded China\u2019s credit rating<\/strong> and warned that the country\u2019s debt position will worsen as its economic expansion slows. However, one glance at the divergence between industrial metals’ collapse and the sudden buying panic in Chinese stocks <\/strong>confirms what Asher Edelman noted yesterday about the US markets, China’s so-called “National Team” was clearly intervening<\/strong>…<\/p>\n

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As Bloomberg reports,<\/em><\/a> Iron ore futures on the Dalian Commodity Exchange fell as much as 5.6 percent to 452 yuan a metric ton, almost by the daily limit, <\/strong>before closing at 455.50 yuan, extending Tuesday\u2019s 3 percent loss. Nickel led a broad slump among base metals, dropping as much as 2.4 percent to $9,125 a ton on the London Metal Exchange. Nickel stockpiles rose the most in more than a year.<\/p>\n

In context, the overnight reversal in Chinese stocks is even more obvious…<\/p>\n

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Moody\u2019s move, downgrading China\u2019s debt to A1 from Aa3, adds to concerns about the effects of a slowdown in the country\u2019s economic growth, following on from downbeat manufacturing readings and weak commodity imports, Simona Gambarini, an analyst at Capital Economics Ltd., said by phone from London. \u201cWe\u2019re not particularly concerned about credit growth getting out of hand, but in regards to industrial metals, we have been negative on the outlook for some time on the basis that Chinese growth will slow.\u201d<\/strong><\/em><\/p>\n

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Will The National Team be back tonight?<\/p>\n

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China “National Team” Rescues Stocks As Downgrade Crushes Commodities Iron ore led a slump in industrial commodities after Moody\u2019s Investor Service downgraded China\u2019s credit rating and warned that the country\u2019s debt position will worsen as its economic expansion slows. However, one glance at the divergence between industrial metals’ collapse and the sudden buying panic in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[130,151,15359,1547,1138],"class_list":["post-24063","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-commodities","tag-national-team","tag-ratings-downgrade","tag-stock-market"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24063"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24063\/revisions"}],"predecessor-version":[{"id":24065,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24063\/revisions\/24065"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}