Send for the Rally Monkey, and All Hail China

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The Dow is back at 10,000.

The reason (ahem) is Chinese export data, which was leaked on Wednesday and confirmed on Thursday. Apparently this is reassuring because its shows China has not been affected by the sovereign debt crisis in the eurozone.

Whatever.

Anyway, here’s the Chinese export data.

Flashes from Bloomberg and Dow Jones.

1)DJ China Seasonally Adjusted May Exports Up 45.3% On Year 2) CHINA MAY COAL EXPORTS 1.46 MILLION TONS 3) BN 2:50 CHINA MAY OIL-PRODUCT EXPORTS 2.69 MILLION TONS 4) DJ China May Exports Up 9.9% Vs April 5) CHINA MAY CRUDE-OIL EXPORTS 190,000 TONS 6) BN China May Seasonally Adjusted Imports Fall 0.9% From April 7) *CHINA MAY SEASONALLY-ADJUSTED EXPORTS RISE 10.9% FROM APRIL CHINA MAY SEASONALLY-ADJUSTED EXPORTS RISE 45.3% ON YEAR 9) China May Exports $131.76 Billion 10) BN CHINA MAY EXPORT, IMPORT DATA SUGGESTS SURPLUS OF $19.53 BLN

All hail the Chinese economy then

Not quite. Lombard Street Research says the export data should flash a red light in Beijing because stagflation risk is rising.

WE SUGGEST: Stagflation risk on the rise SUMMARY: China’s economy is overheating. Today’s trade data for May should flash a red light to Beijing. Both exports and non-oil imports have continued to grow strongly so far in Q2. Global growth is set to relapse next year, but in the meantime China cannot afford the build-up of domestic inflationary pressures. The longer it waits to tighten monetary policy the worse the growth fallout is likely to be

Meanwhile, the US Treasury secretary is talking tough on China and the yuan.

Via Reuters:

RTRS-U.S. TREASURY’S GEITHNER SAYS DOES NOT KNOW WHETHER THERE WILL BE MEANINGFUL PROGRESS IN SHORT TERM ON CHINA’S YUAN

RTRS-U.S. TREASURY’S GEITHNER SAYS CHINA CLEARLY HAS NOT DECIDED WHEN, HOW THEY WILL ACT ON REVALUING YUAN

RTRS-GEITHNER SAYS U.S. WILL USE EVERY MEANS AVAILABLE, INCLUDING TORONTO G20 MEETING, TO URGE CHINA TO ACT ON CURRENCY

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And in case you had forgotten what the rally monkey looked like…

This entry was posted by Neil Hume on Thursday, June 10th, 2010 at 15:38 and is filed under Capital markets. Tagged with china, Dow Jones Industr, exports. Edit this entry.

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