There is no positive data out of any sector in China for today. After the disappointing data on Credit and Liquidity Rate outcome, there was also Industrial Production data that appeared to be bad. It has only grew by 9% in July on an annual basis.
The Bank of China was quick to reassure the markets, saying that the growth of Crediting and Financing is still at acceptable levels and the regulator has no reasons to make changes in monetary policy. At the same time CB conceded that economy is slowing down, especially in the Real Estate market. The regulator emphasized the risks of excessive infusion of money into the economy slow down, as it leads to the growth of "bad" loans. Also, the amount of most of these "bad" loans has been growing for 11 consecutive quarters.
Total volume of the Gross Domestic Product of Japan fell sharply in the II quarter after the tax rate on consumption was increased. Nevertheless figures appeared to be above the medium economists’ forecasts, as they were expecting for a fall to 7.1%.
Shinzo Abe faces a tough decision. According to an earlier presented plan to reduce the national debt, Sales Tax in the next year may be increased up to 10%. However, there is a caveat: an increase is possible only if the economy will show a sustained recovery. Mr. Abe should announce his decision by the end of 2014.
Siemens has formed ‘Head&Shoulders’ — the pattern that usually leads to a price revers. The Head (#1 support is at 88.00), the right shoulder (#2 support is at 89.00). The Neckline of 90.65 penetration may attract more buyers and open the way to the next potential resistance of 92.37, then — 94.64.