The China GDP figures for the first quarter, showing a slowdown, have sent the markets down, dampening spirits especially in commodities, gold, silver, aluminium.
Oil, which was far too high anyway, has also come down. A level below $85 a barrel should soon prevail, I hope. Marked slowdown in huge economies like China cannot be corrected otherwise.
The falls in gold, copper, aluminium and Oil started over the weekend in the Far East markets, and have continued into Europe. The U.S. markets will most likely follow suit until the winds are clear.
The markets will of course find support levels for the various commodities in due course.
A zero point three percent drop in GDP is not by itself too big, but the compounding effect of a high Oil price has taken its toll, that's what I would say. There is a mood of optimism in the Far East, with the situation in the Korean peninsula seeming to be cooling down, hopefully finding a peaceful solution with trade-off of aid which North Korea badly needs. If the late Kim Jung-il's Golden Son can take a conciliatory approach, and wake up to the possiblity of development and prosperity through peace, then everything should auger well for continued growth everywhere and good times.
I send you, dear Readers, this message of hope and peace.