Thursday, 28 October 2004

China's cool

Now, who would that thought, China's central bank today raised interest rates for the first time in 9 years.
The implications for this decision could be seen in commodity markets all around the world.
As of now ( thursday, 18.30 croatian time - 10.30 am in US ), gold is down , oil is down, Alcoa ( aluminium maker ) is down.
But dollar is UP !
The reason goes that commodity prices ( oil, silver, platinum..) are rising for many months because of the China's demand for their booming economy.
But related to China, this news ( Yuan peg) could be of the most interest in months ( years ) to come.

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