Following an improvement in the pace exports contraction, the latest figures from China printed well below expectations in September, hurt by weaker demand abroad. Exports last month fell -10.00% percent in dollar terms, versus consensus estimate of a -3.00% percent decline. Imports to the country also took a hit, falling -1.90%, with the overall trade surplus coming in at $41.99 billion, compared to forecasts of a figure around $53 billion. The foreign trade data comes amid the backdrop of steep declines in the Yuan, with the currency last week hitting its lowest levels against the US dollar in close to six years. What should be worrying from an analyst standpoint is that import volumes of key commodities like iron ore and copper have fallen significantly. This could be an early indication that the recent economic recovery might be losing some momentum.
Dragon Fears Reignite
Daily Analysis - 13/10/2016