China 11.1% growth: sell-off because China's economy accelerates in Q1, more tightening seen
$SSEC Closed below 3500 which I noted as resistance.
We know the reason for sell-off for China, but futures are showing down -9 and -13.
Last time when we sold off, we followed China sell-off, but for the different reason.
Good luck to ALL
Index Value: 3,449.02
Trade Time: 3:00AM ET
Change: Down 163.38 (4.52%)
Prev Close: 3,612.396
Open: 3,610.024
Day's Range: 3358.93 - 3617.44
52wk Range: 1,376.96 - 3,623.87
http://www.stockcharts.com/c-sc/sc?s=$SSEC&p=D&yr=0&mn=6&dy=0&i=p02439948996&a=66381250&r=667.png
Thursday April 19, 6:45 am ET
By Eadie Chen and Tamora Vidaillet
BEIJING (Reuters) - China's economy grew in the first quarter by 11.1 percent from a year earlier, fuelled by booming investment and exports and adding to speculation that interest rates would need to rise again soon.
The growth rate announced on Thursday was broadly in line with the 11.0 percent forecast by economists in a Reuters poll but it marked an acceleration from 10.4 percent in the fourth quarter of 2006.
"This is very strong. It means more tightening. I think there will be at least two more rate hikes and the reserve ratio will have to go up to 12 percent from 10.5 percent," said Chris Leung, China economist at DBS Bank in Hong Kong.
The central bank, in an effort to rein in an investment boom, has already raised interest rates once and increased banks' required reserves three times this year. Many analysts expect further moves soon.
Edited by Trend-Signals, 19 April 2007 - 07:14 AM.
