A look at China

The biggest economic problem for global markets at the moment is neither Greek drama or conflict between the West and Russia or slow recovery in the euro area. This is China.

Over the weekend, the second largest economy in the world continued with the series of bad news.

While consumer price inflation increased in July, which is not good news for domestic consumption, the collapse of producer prices continues.

The consumer price index has increased by 1.6% yoy, after rising 1.4% in June. At the same time production prices fell by 5.4% compared to a decrease of 4.8% the previous month.

China's foreign trade has also continued to deteriorate. Exports decreased by 8.3% compared to 195.1 billion dollars in July 2014, while imports declined by 8.1 % to 152.07 billion dollars. The trade surplus decreased by 10% to 43.03 billion dollars.

These data deepened concerns that the Chinese economy is heading towards crisis. Globally the country is the biggest consumer in copper, gold, steel and many other goods.