Is China already a world leader in vehicle manufacturing? This says José Luis Cava


Data from the German industrial sector reveal that Germany is de-industrialising. Manufacturing orders for the German industrial sector unexpectedly fell by 0.4% in April, when an increase of 2.4% was expected. Is it because global demand is contracting? According to José Luis, digs in part, yes, but that fact does not explain what is happening in the German industry.

Chinese export data was released today and it shows that Chinese exports are also weakening, probably because global demand is weakening as well. “Now, that this data does not cloud us and does not let us see what is behind it,” warns the expert. “The vehicles that we Europeans buy, in a very high percentage, come from China. Here in Europe, we are so distracted that what we complain about is the subsidies that the Biden administration is giving to the American automobile sector, but we do not complain what is happening in China, how China’s exports to the world are evolving”.

This graph shows how Chinese vehicle exports rise with a strong positive slope. What this fact reveals to us is that China is dominating the vehicle manufacturing category globally. They were already leaders in ship manufacturing, but we are seeing how they are exporting electric vehicles as if there were no tomorrow.”

The analyst reports that this fact is fundamentally harming Germans and Japanese, which have a strong problem. And if we find that Germany, the engine of Europe, the main European economy, falterswhat we find is that Europe is going to falter and goes to lose their economic power if they don’t take action.

Regarding the US stock market, the expert speaks first of the Russell2000. This index has broken through resistance in the 1800 area. Can you continue the gains? According to the analyst, it may continue to rise towards the 2000 area.

José Luis Cava affirms that he looks at the 1840 area, which is a first support. “If that support is respected and exceeds the highs we have seen yesterday, at Bolsa Cava we are going to try to open a long position. And as long as it stays above 1800 we are going to keep a bullish bias.”

Finally, the expert also refers to the S&P 500, stating that the index is moving sideways. “The S&P 500 is moving above 4,267. The preformation of 4,267 would very likely send us to 4,240, which we already said yesterday. And as long as it remains above 4,240 we are going to have a bullish predisposition, targeting the JP Morgan collar, the call sold, the 4,300/4,320 area”.

reference: www.estrategiasdeinversion.com


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