On Tuesday, investors were wondering if it was time to re-think global growth trades after China said it was raising retail gasoline and diesel prices by between 6 and 7 percent, the biggest increase in nearly three years.
"The move might sap demand growth. Higher prices tend to discourage wasteful consumption," says Gordon Kwan, head of energy research at Mirae Asset Management in a Reuters interview.Adding to concerns, BHP Billiton, the world's biggest miner, said it’s seeing signs that iron ore demand from China is becoming flat. Chinese demand for iron ore has been the driving force behind years of expansion among the world's mining companies.
How should you position now?“This isn’t new,” says Fast trader Pete Najarian. “We knew that 10 years of 24% growth in China wasn’t sustainable.”Page 1 of 4 | Next Page