China’s exports declined for the ninth consecutive month in November, falling even more than forecast (-6.8% vs -5% estimated). This data has set off alarm bells in the raw material markets and amongst producer countries, most of which are emerging economies, given that China is their main consumer on a global level. Raw material prices are at their lowest levels since the beginning of the last century.
Most analysts think that the European stock markets, and particularly the Spanish bourse, have taken an excessive beating over the last few sessions. Now fund managers are recommending to take advantage of the recent correction to buy into these markets. In their opinion, the recovery in activity in the euro area will be accompanied by an improvement in share prices in the coming months.
Ofelia Marín- Lozano | The close to 40% drop in raw material prices over the last year has been taken as an unmistakable sign of a strong slowdown in China, auguring a very negative outlook for producing countries. But the market has seen that the alarm bells sounded over China have been clearly unfounded, as major global companies like Apple are still seeing high levels of sales in the country.