China Data Misses, but Recovery 'Not Far'

Data out of China showed output rose 9.3 percent last month, well below forecasts. With growth of 8.1 percent, China's economy grew at the slowest pace in three years. Inflation came off slightly, but it is still well above target.

The weak data came on the back of Tuesday's import data, which showed a meager 0.3 percent rise in imports and export totals that were below forecast.

The weak data promoted Bank of America to cut China's second quarter growth estimate to 7.5 percent from 8.5 percent, and full year 2012 growth estimates were cut to 8 percent from 8.6.

Bank of America China economist Lu Ting says growth may rebound to 8 percent in the third quarter and 8.2 percent on the year. She also said a recovery is "not far".

Traders are expecting near term moves in ETFs that track the S&P 500 (NYSE: SPY), the Chinese Stock Markets (NYSE: FXI), and emerging markets (NYSE: EEM).

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