China PMI

Today, the stock markets around the world are firing.  And will do so tomorrow except that Wall Street is closed for Thanksgiving holiday.  Why?  While Chinese stock market is small, its economy is big.  And if its manufacturing cylinders are firing, then Australia can benefit.  The difference this time is, it is due to internal economy.  The world is not importing as much so the rise in PMI is due to government stimulus.  Will it be sustained?  Inshallah!

Another point is there have been tipsters predicting that the resource sector will plunge further.  But nothing is ever certain.  Those people could still be right.  But you never know when recovery will start.  And if the fiscal cliff in the USA is temporarily fixed, then the sky is blue again... for a short while.