9 Mar 2015
China posts a record high surplus – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team summarize the key developments in the Chinese market, noting that seasonal distortion resulted in an around 50% increase in exports.
Key Quotes
“China markets are leading the regional decline, with mixed February trade data compounded by Friday losses on Wall Street after the better than expected US jobs figures added to expectation of an impending rate hike by the Federal Reserve.”
“Although China posted a record high surplus, imports decline exceeded expectations and marked the largest drop in nearly 6 years. A near 50% rise in exports was also indicative of the data being distorted by seasonality of off-month Lunar New Year timing this year.”
“The decline in demand for basic material components of the trade numbers further underscore the slowing mainland economy - imports of iron ore were down 14% and crude oil down 9% on the year.”
“Speaking over the weekend, China premier Li remarked there is more room for further stimulus measures if economic challenges persist deeper into 2015.”
“CHINA FEB TRADE BALANCE: $60.6B V $10.8BE (record high surplus); Exports Y/Y: +48.3% v -3.3% prior; Imports Y/Y: -20.8% v -19.9% prior (biggest decline since May 2009)”
Key Quotes
“China markets are leading the regional decline, with mixed February trade data compounded by Friday losses on Wall Street after the better than expected US jobs figures added to expectation of an impending rate hike by the Federal Reserve.”
“Although China posted a record high surplus, imports decline exceeded expectations and marked the largest drop in nearly 6 years. A near 50% rise in exports was also indicative of the data being distorted by seasonality of off-month Lunar New Year timing this year.”
“The decline in demand for basic material components of the trade numbers further underscore the slowing mainland economy - imports of iron ore were down 14% and crude oil down 9% on the year.”
“Speaking over the weekend, China premier Li remarked there is more room for further stimulus measures if economic challenges persist deeper into 2015.”
“CHINA FEB TRADE BALANCE: $60.6B V $10.8BE (record high surplus); Exports Y/Y: +48.3% v -3.3% prior; Imports Y/Y: -20.8% v -19.9% prior (biggest decline since May 2009)”