Chinese Exports Sink to 3-Month Low
China confirmed a reduction in demand for goods as they released economic data showing a 21% drop in exports and a 5.1% decrease in imports. The blame was firmly pinned on Sino-American trade tensions and the tariffs imposed by Trump’s administration. February saw a month on month drop of 9.1% the largest decline since February 2016.
The general mood in the Chinese equity market seems positive with the CSI 300 performing well in 2019 remaining some 25% up YTD. The economic data did bring a sharp 3.97% dip and we will see if this continues or whether sentiment improves.
A trade deal could be in sight with US and Chinese officials hammering out more details, yet these all remain private, so any optimism amounts to speculation. It is likely that the country that leaves with less favourable terms will be the country most eager to strike a deal. There was hope of a meeting between Trump and Xi Jinping at the end of March, but this date is now slipping. The recent behaviour of Trump in the N. Korean nuclear disarmament negotiations has added pressure to the situation as both sides need a resolve rather than lengthy negotiations and ongoing uncertainty.
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