World GDP and Trade

World trade is shrinking and it has been an indicator of growth of world GDP. the amount of cargo passing through the Suez Canal in Egypt. Approximately 8% of the world's international trade is estimated to flow through the canal, so it acts as a good early indicator of the prevailing economic conditions.

It not all that bad

Admist double dip frenzy and scaremongering, there are few data which is not all that bad.

New home sales figure , though disappointing, is still showing growth.

Baltic Dry index which is indicator of econmic activity has also shown improvement

So summing it up , there are chances of recession but it might be another slow gorwth phases and not the one which we saw in 2008

Baltic Dry Index

Generally with commodity prices heading north, we see a lot of activity in bulk cargo shipping.. surprisingly Baltic dry index seems cold and not abuzz with activity. could it be a real lack of cargo moevement or another demand supply mismatch which might push commodities higher