Featured Trades: (FXI)
ISHARES FTSE/XINHUA CHINA 25 FUND
2) Another 'W' Warning. China traders (FXI) were sucker punched this morning by the shocking decline in the country's May purchasing managers' index, which plunged from 55.7 to 53.9. That leaves the coincident indicator teetering above the 50.0 boom bust level. The news threw a bucket of water on global equity markets, as it should, since the data gives more credence to the dreaded double dip scenario. Both the US and Europe are hoping to climb out of their economic morass with stepped up sales to China, and the Middle Kingdom's economy sliding down into the crapper does not exactly accommodate that strategy. The world's least experienced central bank now faces the most challenging task of any policy making organization. How do they cool down the white hot real estate sector and staunch a rising inflation rate without killing off the rest of the economy? Global equity traders are waiting with baited breath.