China, recently hailed as the largest energy consuming nation, always has the attention of energy traders when they release important economic data. This week traders will be flooded with economic reports flowing out of China. The culmination of which will be their gross domestic product release on Thursday.
Remarkably resilient, China has maintained double digit GDP growth despite a worldwide slowdown. However, the Shanghai Securities Journal is actually looking for a bit of a pull back in Q3 GDP from China. They are forecasting 9.9% GDP for Q3 and are anticipating 2011 yearly GDP to fall to 8.9%.
Should energy traders start anticipating a bear market trend reversal? Hardly. The Chinese government will be thrilled to see a slight downturn in GDP as this will eliminate and further need of economic policy tightening, allowing future growth to continue without major inflation concerns.
Should the Shanghai Securities Journal's prognostication of a down turn in China's GDP be accurate, crude and refined products likely to sell off. Good pricing values for long traders will likely become available when support levels are reached.
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