http://www.marketwatch.com/

Exit the dragon

A closely watched gauge of Chinese manufacturing dips

Comments :

China's GDP is slowing down to a soft landing due to a tightening on landing policies started at the beginning of the year by restricting bank's landing quotas and increased lending rates . All this diminishes fears of a bubble in China's economy especialy in construction sector , that's why the actual slow down in GDP is perceived as a positive thing for the global economy .

It also reduces risk of higher inflation notwitstanding the rise in salary wich in the end is only one of many factors affecting production prices . As was stated in some previous articles many foreign enterprises said they could easyly absorb the recent cost in labours due to other factors affecting their businesses .

At this point and time in the recovery cycle the perception about the so called double dip recession has been the main reason affecting global markets . Whether it's in Asia , Europe or in the US , those factors seen as being able to cause a double dip recession are slowly being downgraded .

Maybe the markets recovery expected next fall by some , might start earlier .