The market sentiment remains risk-off amid rising virus cases around the world and fears over new restrictions and lockdowns.
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.
The US dollar has started the week on the positive footing, while riskier assets are dipping down. Let’s discuss last market movements in more details.
The overall sentiment remains upbeat amid vaccine hopes and improved US-China relationships. Let's have a closer look.
China's industrial rebound, progress in US fiscal stimulus and other important news in this article.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.