Where global economy is heading 4-6 weeks from now? Conclusion

The above blog was posted on September 4^th 2011. The post received lower than expected audience! Sad!

In the post, I was trying to show a relationship between the Baltic Dry Index and global growth. Coincidentally (or not), global markets hit major technical support level on this very day (the 4^th week from September 4^th, that is October 4^th) and reversed.

A summary of October PMI data for Manufacturing & Services, complied by JPMorgan, Markit, HSBC, etc was mixed with the service sector business activity rising for 27 straight months.

Japan, China, Brazil and Russia stood out while India saw fractional growth.

I was researching on major benchmark indices for the US, Europe and the Asia Pacific. I noted that the bottom for the year 2011 was October 4^th. After which, we saw the following (two) weeks till current, major indices rallying (catching a breather during 1^st week of November: noise from Greece and Italy). However, the flight of vultures between Greece and Italy did not dampen the bull’s mood.

The US major indices returned a positive week bringing all major indices back into the black. Let’s hope, the Asia Pacific and Europe sector would follow the world’s largest economy returning positive for the year. See: YTD major benchmark performance 2011 Nov 11th

Was the BDI coincidental or has time proved the outcome? We can still be skeptical, but the fact is global market rallied leaving the year's low on that very day, October 4th 2011!