Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
China's June exports are quite firm
China's exports surge is expected to have decelerated only a bit in June, probably further stimulating a trade surplus with America in a test for the Chinese government as it attempts to repel a bunch of American duties on its products that many investors fear could affect its economy.
On Tuesday, the Trump administration dared to raise the stakes in its trade clash with China, telling it would impose 10% duties on an extra $200 billion worth of China’s products, including numerous consumer items.
America’s fresh move showed up just several days after it put 25% duties on $34 billion of China’s imports, drawing fast retaliatory tariffs by the Chinese government on the same amount of American exports to this Asian country.
Considering the recent round of tit-for-tat duties coming into effect on Friday, we should admit that there has been minor impact on the Chinese overseas shipments to date.
The Reuters survey of 39 financial experts foresees Chinese exports surge of 10% year-on-year in June, speeding down a bit from a 12.6% soar in May.
The previous week China's Ministry of Commerce told that it would encourage Chinese exporters to develop fresh export markets, and would also utilize funds collected from duties for the purpose of relieving the impact from American trade actions on Chinese companies.
Imports surge was also anticipated to stay firm at 20.8% in June, the third straight month of 20-plus percent surge, although speeding down again from May’s 26% soar.
There’s also most likely to be significant focus on the US-China trade balance because Donald Trump has yelled at China's sizable surplus with the world's number one economy. Moreover, US leader has demanded the Chinese government to take measures to have it cut.
By the way, the previous year China managed to run a $375 billion goods trade surplus with America.
US Advance quarterly GDP is announced on April 29 at 15:30 MT time.
The US dollar is heading for the best week in three. The market sentiment is mixed as optimism about the global economic recovery was outshined by increasing tensions between the West and China.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!