China: Better than expected October trade data – TDS

Analysts at TD Securities note that the China’s October trade data came out better than expected with exports -0.9% y/y (mkt -3.9%) and imports -6.4% y/y (mkt -7.8% y/y).

Key Quotes

“China's trade surplus was bigger than expected at $42.81bn (mkt $40.1bn). China's trade surplus with the US increased to $26.4bn but narrowed on a 12m basis to its smallest since Oct 18 at $313bn. Imports from the US, dropped by 16.2% y/y.”

“We do not expect any improvement in exports in the months ahead, while imports are also likely to remain soft. The trade surplus with the US is likely to continue to move in the right direction, however.”

“While China's rolling 12m trade surplus with the US decreased the surplus with Europe and Asia grew, to $152.8bn and $96.7bn, respectively. China's imports from several countries in Asia are negative y/y, especially Korea.”

“Conversely exports are positive to most countries, except India where there has been growing sensitivity to the burgeoning bilateral trade deficit. China's trade deficits with Korea and Taiwan continue to narrow as imports continue to shrink, due to increasing self-reliance in some areas of technology production.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.


GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.


Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News