John Robertson

The connection between the state of the Chinese manufacturing industry and Australian resources sector equity values has become more obvious over time as my chart of Chinese manufacturirng PMI and S&P/ASX 300 resources at (VIEW LINK) shows At times, month to month movements in the outlook for Chinese manufacturing have translated prompltly into movements in equity values. The relationship suggests that mining equity values will battle to rise (whatever their valuation attributes) until there is evidence of an expansion in Chinese manufacturing output. One of the questions affecting the invstment attractiveness of the sector is whether this connection will prevail even as Europe and the USA might begin to grow more strongly.


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