BRIC needs a breakthrough but how?

Many would be disappointed if they placed too much hope on China- and the other nations that constitute BRIC- to make up for the shortfall in global economic growth due to economic slowdown in Europe & slow growth in US. All signs seem to point to slower growth in these economies. This is reflected in the performance of their main stock market barometers.

After declining for more than 1 years, all the major indices (SSEC, BSE & BVSP) broke above their respective intermediate downtrend line in February or March. RTSI is the only exception. In May, BSE & BVSP have both dropped back below the downtrend line. The last man standing is SSEC, which is rather surprising given the strong case being made by some economists & pundits that China is likely to experience economic hard landing. Recent reports that China is suspending shipments of coal & iron ore only served to strengthen the case for a Chinese economic hard landing. That, and a slowdown in US & Japan plus a recession in Europe, would make for a perfect storm. Let's hope not.


Chart 1: SSEC's daily cahrt as at May 22, 2012 (Source: Stockcharts)


Chart 2: BSE's daily cahrt as at May 22, 2012 (Source: Stockcharts)


Chart 3: BVSP's daily cahrt as at May 22, 2012 (Source: Stockcharts)

Chart 4: RTSI's daily cahrt as at May 22, 2012 (Source: Stockcharts)