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Freight trains wait at a station in Wuhan, Hubei province, September 14, 2012.
Freight trains wait at a station in Wuhan, Hubei province, September 14, 2012.
(Darley Shen/REUTERS)

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TSX moving like a (Chinese) freight train

The latest rail freight data from China is sending a message to Canadian investors: Be cautious.

There is an extremely close relationship between the S&P/TSX composite index performance and changes in Chinese freight traffic. The numbers released Tuesday suggest continued weakness in China – the national economy that has driven profit growth for corporate Canada for the past decade – and the implications are not good for the TSX.