“Omega-Trading”– Market Reaction To China Growth Overdone …

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) July 5, 2010 -- “Omega-Trading” analysts believe that a sharp pullback in global equity markets on the strength of a revised growth forecast for the Chinese economy was grossly overdone.

The Conference Board, a New York-based research group, said that its Leading Economic Index for China showed that the world’s third biggest economy would “only” grow by 9% in 2010.

One of the “Omega-Trading” analysts said “We think that investors will most likely have taken the news a little too badly given the stresses elsewhere in the financial markets but they’d do well to remember that, ultimately, any slowdown in China is being engineered in a relatively orderly fashion by the People’s Bank Of China rather than arising from any disorderly contraction in the economy. The US and Europe would welcome a forecast of 9% growth this year”.

“Omega-Trading” apparently gave a lukewarm reception to news last week that the Chinese government would allow its currency, the yuan, to appreciate against the US dollar. The analyst suggested that, far from being a vote of confidence in the strength or sustainability of the global economic recovery, the decision was most likely made after witnessing a surge in domestic demand for the goods the country produces.

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