Yesterday we mentioned the 15% rise in the Baltic Dry Index on Wednesday. On Thursday the index went to 1498 points or the highest level since October. And today we observe that sentiment had fed through global metal prices. London copper rose 5.3% this morning.
Even more: Asian shipping stocks have seen a corresponding lift.
According to the Financial Times demand is stronger from the Chinese; they are buying iron ore from Australia and Brazil. And AP Moeller-Maersk said that due to improving demand the freight rates will be brought up.
What can be the reason behind this move?
Are inventories worked off? We think both things happened: a contraction in trade finance and a one-off inventory correction have pushed Asia’s exports down more sharply in the 4th quarter of 2008 than was warranted by the fall in underlying demand. Now trade financing is picking up and inventories are worked off, the train –grinded to a halt – is now slowly on its way again.
Yesterday we showed Chinese shares, today we offer a renko chart of Dry Ships – o yeah babe…
Even more: Asian shipping stocks have seen a corresponding lift.
According to the Financial Times demand is stronger from the Chinese; they are buying iron ore from Australia and Brazil. And AP Moeller-Maersk said that due to improving demand the freight rates will be brought up.
What can be the reason behind this move?
Are inventories worked off? We think both things happened: a contraction in trade finance and a one-off inventory correction have pushed Asia’s exports down more sharply in the 4th quarter of 2008 than was warranted by the fall in underlying demand. Now trade financing is picking up and inventories are worked off, the train –grinded to a halt – is now slowly on its way again.
Yesterday we showed Chinese shares, today we offer a renko chart of Dry Ships – o yeah babe…
Ha den Bart !
ReplyDeleteHoe is het ermee?
Ik zie met veel plezier dat de vos (of tegenwoordig meer en wolf)zijn streken nog zeker niet is verloren...
er zitten nog steeds pareltjes tussen.
gretz,
Danny