9 Mar 2015
China remains on soft ground – MP
FXStreet (Barcelona) - Dean Popplewell, Director of Currency Analysis at MarketPulse, views that in spite of the outstanding export data out of China, the decline in basic material components like iron-ore and crude oil, indicates that the economy treads on soft ground.
Key Quotes
“In the overnight session, the Chinese markets have managed to lead the regional decline with their own mixed February trade data. Although the world’s second largest economy managed to post a record high surplus ($60.6B V $10.8), the import numbers decline has exceeded market expectations and has solidified the largest drop in a half a dozen-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.”
“Reports like these are reason enough why the PBoC cut interest rates last week. Are investors witnessing the beginning of an easing Chinese rate cycle?”
“Over the weekend, even China’s premier Li has indicated that there is more room for further stimulus measures if economic challenges persist this year.”
Key Quotes
“In the overnight session, the Chinese markets have managed to lead the regional decline with their own mixed February trade data. Although the world’s second largest economy managed to post a record high surplus ($60.6B V $10.8), the import numbers decline has exceeded market expectations and has solidified the largest drop in a half a dozen-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.”
“Reports like these are reason enough why the PBoC cut interest rates last week. Are investors witnessing the beginning of an easing Chinese rate cycle?”
“Over the weekend, even China’s premier Li has indicated that there is more room for further stimulus measures if economic challenges persist this year.”