Yeah maybe or it takes back 16c like nothing happened. A big fall in the AUD adds considerably to KZLs bottom line.
Also I don't know if you heard but Obama just approved a new oil pipeline from Cushing, Oklahoma to refineries on the Gulf Coast.
Although it may have been something of a token effort, there is no doubt that an alleviation in Brent & WTI oil prices will aid the global economy. China was struggling against surging Brent oil as were their other Asian and European counterparts.
Wars need oil and so do market rallies but this also helps to counter concerns about Iran and future supply, not to mention they will need 800km of multiple steel pipelines that need to be rust proof or galvanized with zinc :)
The pipeline also fast tracks about 5000 construction and other jobs in the US.
That's not to diminish the poor manufacturing report from Europe either but just to put it all in perspective. There's no doubt that Europe's numbers were disappointing but not exactly unexpected. We'll be down today, up tomorrow. Just the way it goes...
At the end of the day though PMIs are just surveys and subject to emotional imbalances. I.e. I bet a lot of Chinese purchasing managers are feeling quite peeved at their house prices falling along the coast.
More important is real production data comes out at the beginning of April, which I think might prove to be a bit stronger. China themselves have said they will hit 8.5% GDP growth but we are pricing in 7.5 at present and Chinese exports are bound to recover as the U.S. (no. 1) & Japanese (still no.3) economies strengthen.
At any rate there are just 12 business days left until Kagara's quarterly activity report, so the bears are running out of time to drive it much lower.
KZL Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
