What happened? On Monday, February 21, Russian President Vladimir Putin signed decrees recognizing the sovereignty of the Donetsk and Lugansk People's Republics…
China’s March exports rebound to five-month maximum
In March, China's exports managed to rebound, although imports decreased for the fourth month in a row and at a steeper tempo, painting rather a mixed picture of the Chinese economy because trade negotiations with America reach their endgame.
Market participants are hoping for more signs of economic recovery in China to soothe fears about decelerating global surge, after this week the IMF had its 2019 world outlook downgraded for the third time.
However, veteran China watchers had told that export gains might occur because of seasonal factors than any unexpected turnaround in lackluster global demand because shipments were anticipated to head north after long holidays in February.
From 2018, March exports went up by 14.2%, as customs data revealed on Friday, which appears to be the strongest surge for five months. Marker experts had expected a 7.3% jump after February's 20.8% tumble.
However, China's imports headed south more than anticipated, suggesting its domestic demand is still poor. As for imports, they decreased by 7.6% from 2018, which is worse than experts’ estimates for a 1.3% dive and extending from February's 5.2% tumble.
It left China with a trade surplus of $32.64 billion for the month that appears to be greater than estimates of $7.05 billion.
Exports went up by 1.4% from 2018 in the first quarter, while imports decreased by 4.8%.
As follows from China factory surveys for the previous month, demand was actually improving abroad and at home, dropping a hint that government stimulus measures might be starting to take hold.
While export orders were still sluggish, there were indications that a long spell of contraction was receding even as trade negotiations with America were demonstrating progress.
Hong Kong’s HK 50 index rose and the Chinese yuan edged up as traders assess the outcome of the first virtual meeting between US President Joe Biden and Chinese leader Xi Jinping.
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.