Can Crude and Copper Keep Rallying with China Slowing?
by Team of GaveKal Capital,
Yesterday saw the monthly slue of Chinese economic stats and the key feature among them was the continued broad-based weakness. The weakness in some of these statistics has been so pronounced (some things like IP and retail sales are at levels near or below those seen at the depths of the financial crisis) that it has us wondering if the price of oil and copper can continue to rally in the face of an increasingly slower China? We will let our readers make that call. Below we simply show Chinese industrial production (blue line, left axis) overlaid on the price of Brent crude oil (chart 1) and copper (chart 2).