08 May, 2018
China’s trade growth increases as fears of trade war ease
Last month there was a rise in China’s trade growth with imports doing better than expected and exports increasing around 12.9% in comparison to the previous year as well as recovering from the 2.7% fall in March.
Expectations for China’s trade surplus in April surpassed the predictions of $24.7bn and stands at $28.8bn (£21.3bn).
Markets are on the up as fears of a US-China trade war ease, due to Donald Trump’s demands on diminishing the trade gap between the two countries.
China’s primary Shanghai Composite index adds 0.8% to 3,136.6 points where Hong Kong’s Hang Seng index concluded 1.4% higher at 30,402.8 points.
Earlier today, Fed Chairman Powell spoke in Zurich at a SNB/IMF event where he argued that: “while global factors play an important role in influencing domestic financial conditions, the role of U.S. monetary policy is often exaggerated. And while financial globalisation does pose some challenges for monetary policy, efforts to build stronger and more transparent policy frameworks and a more resilient financial system can reduce the adverse consequences of external shocks.”
Tomorrow’s main focus will be on the US April PPI report, the March wholesale trade sales and inventories data. In Europe, the March industrial production print in France will be released and Fed’s Bostic is due to speak again towards the end of the day.
Thursday is looking busy in the economic calendar starting off with the BoE meeting including a Carney press conference and the most recent inflation report. China’s latest April CPI and PPI prints are due for release with the US April CPI report following in the afternoon. More data to look out for is the trade balance in Japan and UK for the month of March.
The week comes to a quiet end on Friday with the US April import price index to keep watch for.