Investors focused on reports from China
A fresh batch of news on the Chinese economy, reinforced concerns about global growth. The foreign trade surplus of China reached an impressive 57.1 billion in December, and is a maximum of three years. Potentially, this is good news for the yuan, as it implies an increased inflow of funds into the economy.
However, upon closer inspection, the statistics recorded a fall in China’s exports and imports. This is not only a sign of inhibition, but a symptom of the global slowdown. Thus, the national courts are losing about 1%. American futures for the S&P500 show in the morning minus 0.9% on concerns that trade disputes between China and the U.S. will cause serious slowdown in key economic regions.
A large part of imports to China is made for the subsequent production, not for final consumption. Weak import is preceded by a further decline of exports and threatens to become an even greater slowdown in the Chinese economy.
Markets are closely watching data from China. First, it is the world’s second largest economy and critical trade partner for a large number of countries, so data from there cover a very wide range of companies. However, it is also important that China is a key global indicator: the trade sector is often immediately responds to General economic trends. No less important for the markets and the fact that these data come very quickly: already published Chinese statistics for December, while many developed countries will complete the calculations of the indicators only at the end of January-beginning of February.