China Balance of Trade: Surplus in September

News Event

From Trading Economics: China recorded a trade surplus of 419.90 USD HML in September of 2016. The balance of Trade in China averaged 87.08 USD HML from 1983 until 2016, reaching an all-time high of 627.45 USD HML in January of 2016 and a record low of -319.71 USD HML in February of 2012. The balance of Trade in China is reported by the General Administration of Customs.

Imports to China unexpectedly increased by 1.5 percent from a year earlier to USD 138.54 billion, following a 12.5 percent decrease in July while markets expected a 4.9 percent fall. It was the first increase in 22 months. In yuan-denominated terms, inbound shipments went up 10.8 percent year-on-year, compared to a 5.7 percent decline in the preceding month. Exports from China declined by 2.8 percent year-on-year to USD 190.59 billion, following a 4.4 percent drop in the preceding month and market consensus of a 4.0 percent drop. In yuan-denominated terms, sales grew by 5.9 percent from a year ago, compared to a 2.9 percent rise in July.

Market Snap

Market Closing Wrap

In European Equity Markets stocks fell slightly on Wednesday with Sweden's Ericsson falling to eight-year lows after issuing a profit warning. The STOXX 600 index fell 0.5 percent, losing ground for the second straight session. Germany's DAX also fell 0.5 percent, while Britain's blue-chip FTSE 100 index and the FTSE 250 mid-cap index both fell around 0.7 percent. Telecoms equipment maker Ericsson lost 20 percent to its lowest point since 2008 after warning that its third-quarter profit would be "significantly lower" than expected after a downturn in its mobile broadband business had accelerated. Among the top risers, however, Deutsche Lufthansa gained 4.3 percent after an upgrade from Kepler Cheuvreux.

In Currency Market's sterling rose on Wednesday amid indications Britain may avoid an aggressive and potentially damaging exit from the European Union, while the dollar hit a seven-month high against a basket of major rivals ahead of the release of Federal Reserve meeting minutes. Sterling was last up 0.63 percent against the dollar at $1.2199, down from a session high of $1.2326. The euro hit an 11-week low of $1.1009 in morning U.S. trading and was last down 0.27 percent at $1.1023. The dollar also hit an 11-week high against the Swiss franc of 0.9903 francs and was last up 0.43 percent against the yen at 103.95 yen. The dollar index hit a seven-month high of 97.968.

In Commodities Markets  oil prices fell about 1 percent on Wednesday after OPEC reported its September oil output at eight-year highs, offsetting optimism over the group's pledge to bring a global crude glut under control.  Brent crude fell 1 percent, to $51.89 a barrel. U.S. West Texas Intermediate crude fell 1.3 percent, to $50.11. Gold rose on Wednesday as the dollar steadied though analysts said the likelihood of higher U.S. rates later this year was likely to keep prices under pressure. Spot gold was up 0.1 percent at $1,257.3 an ounce and silver gained 0.4 percent to $17.51 an ounce. Palladium rose 0.9 percent to $653.6 an ounce after earlier touching a low of $643.72, its lowest since July 19.

In US Equity Markets the S&P 500 and the Dow pared losses on Wednesday as financial stocks rose in anticipation of the minutes of the Federal Reserve's September policy meeting. The Dow Jones Industrial Average was down 0.07 percent, at 18,116.13.  The S&P 500 was down 0.01 percent, at 2,136.57 and the Nasdaq Composite was down 0.2 percent, at 5,236.26. Six of the 11 major S&P 500 indexes were higher, with utilities rising the most by 0.61 percent. Fortinet shares fell 12.2 percent after the cybersecurity company cut third-quarter revenue and profit forecast. Shares of rivals Palo Alto and FireEye also fell. Barracuda Networks rose 13 percent after the computer security and storage firm's quarterly revenue beat analysts' estimates.

In Bond Markets U.S. Treasury yields rose to their highest levels in four months on Wednesday, pressured by incoming supply and growing expectations of an interest rate increase from the Federal Reserve later this year. The 10-year note was last down 8/32 in price to yield 1.785 percent. The 30-year bond was last down 15/32 in price to yield 2.512 percent. Meanwhile, yields on shorter-dated maturities, such as 2-notes, which are more sensitive to Fed policy expectations, rose to their highest since early June ahead of the release of minutes from the U.S. central bank's most recent meeting.

Source: Institute of Trading and Portfolio Management