More bad news is good news this morning–now from China

The bad news from China today has been enough to lift Chinese stocks—Hong Kong’s Hang Seng index closed up 1.1% on the news—but it hasn’t been bad/good enough to do the same for Europe. The French CAC 40 was up 0.54% today but the German DAX Index nudged into negative territory with a 0.02% drop. The Spanish IBEX 35 fell 056% and the Italian FTSE Milan Index was down 0.08%.

More bad news is good news today and the signs of giddiness on Wall Street

Today not only is bad news good news on the theory that bad economic news will push the world’s central banks to faster action. But also Wall Street is starting to believe its own press releases. Today, we’ve got market analysts saying that stocks should be going higher because earnings are coming in above expectations—even though Wall Street itself created those low expectations.

Will investors and traders continue to see bad economic news as good for the financial markets? Check in for German and Chinese data this week to see

Looking at the expected data from Germany and China that starts to arrive on Wednesday, the big question is will global financial markets see numbers indicating weaker economic growth as a plus or a minus? In the last few days the market seems to have swung back to the view that weaker growth is a plus since it increases the odds for central bank action in China, Europe, and the United States.