Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
The first trade deficit for a year is registered by China in March
In March this year China recorded a trade deficit, which accounts for 29.78 billion Yuan. That’s equivalent to $4.98 billion. On the contrary, in February the Asian country reported a surplus of about 222.9 billion Yuan. The trade deficit is fixed for the first time since February 2017 due to the acceleration of imports growth as well as export decline, according to the data provided by the Main Customs Administration of the People's Republic of China.
Interviewed by FactSet market experts on average expected a surplus balance of approximately $19.6 billion.
Exports in Yuan terms headed south by 9.8% after February’s jump of 35.8%. In dollar terms, the indicator edged down by 2.7%.
Thus, the volume of imports went up by 5.9% in RMB as well as by 14.4% in US dollars.
Economists on average expected the growth of Chinese exports in dollar terms by about 11.8%, while imports are expected to inch up by 12%.
In the first quarter of 2018, exports from China increased by 14.1%, while imports acquired by 18.9%. As a result, China's foreign trade surplus amounted to about $48.39 billion in January-March.
Meanwhile, China's surplus in trade with the United Stated for the first quarter of this year reached $58 billion, which appears to be an increase of 19.4% compared to the same period of 2017, according to the GUS.
During this period, Chinese exports to the United States tacked on by 14.8%, while imports from this country tumbled by approximately 8.9%.
The deficit problem in trade with China happens to be one of the most painful for the United States. In this regard, the US President Donald Trump announced his intention to understand import duties on a significant part of Chinese goods.
The United States will publish a headline and core inflation rate on July 13, at 15:30 MT time.
Federal Open Market Committee, a committee within the Federal Reserve System (the Fed), will reveal a detailed record of the most recent meeting on July 7 at 21:00 MT.
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
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.