FXstreet.com (Barcelona) - Trading was lackluster during the overnight session but data out of China pointed to further stabilization in the economy. Chinese trade data released on Saturday showed that exports grew by +9.9% in September (consensus: 5.5%, against a figure of 2.7% previously), while imports were up by +2.4% YoY, in line with expectations.
According to Research Analyst Geoffrey Yu at UBS, “Weaker domestic inflation numbers (at 1.9%) may encourage stimulus expectations, though this certainly has not been reflected in Shanghai equity markets overnight.”
Moreover, “Given the first major round of releases since Q3, governments within this bloc will be looking for signs of capital flows leakage post QE3 and OMT, and markets should expect complaints of complications to monetary policy. However, out of the many macro headwinds the world faces at this stage, some easing in fears of a fresh emerging market growth slowdown will give policymakers globally more time to tackle individual issues with individual policy, though the underlying structural issues are never far from the surface.” Yu portends.
According to Research Analyst Geoffrey Yu at UBS, “Weaker domestic inflation numbers (at 1.9%) may encourage stimulus expectations, though this certainly has not been reflected in Shanghai equity markets overnight.”
Moreover, “Given the first major round of releases since Q3, governments within this bloc will be looking for signs of capital flows leakage post QE3 and OMT, and markets should expect complaints of complications to monetary policy. However, out of the many macro headwinds the world faces at this stage, some easing in fears of a fresh emerging market growth slowdown will give policymakers globally more time to tackle individual issues with individual policy, though the underlying structural issues are never far from the surface.” Yu portends.
