What happened? On Monday, February 21, Russian President Vladimir Putin signed decrees recognizing the sovereignty of the Donetsk and Lugansk People's Republics…
China November export surge speeds down as global demand decreases
In November, China's export surge speeded down. However, it’s still demonstrating the double digits. It’s because a decelerating global demand compensated a long lasting rush to ship goods to America ahead of a then-anticipated lift in levies.
The Asian country’s import surge probably softened, although stayed in recent ranges, providing some relief to China’s policymakers concerned about decreasing domestic demand as well as economic disruptions from the trade row with America.
A truce in the everlasting trade clash might improve the near-term outlook for Asia's leading economy, which has been speeding down because of a bunch of domestic factors, such as a multi-year campaign to tame corporate debt as well as risky borrowing practices.
Last weekend, in Argentina, American leader Donald Trump and his Chinese counterpart Xi Jinping came to a 90-day truce, which postponed the already scheduled January 1 American lift of levies to 25% from 10% on $200 billion of China’s products while they debate a trade agreement.
Shipments of Chinese products on an earlier American tariff list targeting approximately $50 billion of goods have already weakened steeply. However, it has been compensated by a rush of shipments on a later list impacting the $200 billion.
The very likelihood of higher American levies from January on China’s products on the second list has hovered over the heads of China’s exporters for months.
By the way, in November, the Asian country’s exports probably surged by 10% from 2017, which is slower than October’s 15.6% leap.
In November, the Chinese import surge slumped to 14.5% from October’s 21.4% rally.
It’s believed that decreasing global demand along with domestic headwinds from diving credit growth as well as a slower property market might cast a greater shadow on the Chinese economy soon, even without the drag of extra levies.
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 Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.