PON at $11+...could be excused for thinking its an April Fools...

PON at $11+...could be excused for thinking its an April Fools Joke...if only it wasnt a long weekend and the panic merchants would leave their money on the table over the weekend, we could have seen MCR hold to 2.15+
Made the 1.70 bottom look pretty cheap now.

Standard Bank 31/03/10"The relationship between Chinese money supply and prices of
commodities - more specifically those commodities where it remains a net importer - is fairly strong (see fig 1) and has strengthened over recent years.
However, with government spending remaining such a key driver behind the Chinese economy compared to the likes of the banking sector, other than an immediate knee-jerk reaction from the markets,there is little or no lasting impact on prices resulting from the raising bank reserve requirements. This is likely to remain the case.
As far as the base metals are concerned, we believe the two Chinese government decisions that will have the greatest impact on prices are either a dramatic reining in of the stimulus spending -
bearish for metals demand and prices, or to allow the Yuan to strengthen -extremely bullish for dollar denominated commodity prices.
Arguably, the appreciation of the Yuan in mid-2005 was one of the key drivers behind the increase in dollar denominated commodity prices. Another period of Yuan appreciation vs. the dollar would likely see dollar prices shift higher once again as Chinese consumers make the most of their additional spending power. Whether this is enough to counter any slowdown in stimulus spending remains
to be seen however. By Leon Westgate"