China big data the third quarter gross domestic product (GDP) report is which will be published today will set the tone for the markets.
In the last few weeks we have seen the market swinging between
1) Bad news from China
2) Inaction from Fed due to bad news from China
While all of us will like to know the exact situation in China , the margin of error is far more than for any other market . Thus as China slows down the possibility of knee jerk reactions from the market will continue.
This in turn will also decide how low can the commodity prices go . The domino effect of the low commodity prices are already apparent in commodity led economies like Brazil, Russia,Indonesia, Australia and now the MEA economies .