Spreadex Market Update
China export plunge spooks markets despite post-$40 per barrel performance from Brent Crude
That shocking slide in exports was joined by at similarly weak, if not quite as alarming, 13.8% drop in imports; combine the two together and it is the kind of ugly reminder of China’s spluttering economy investors certainly don’t need at the moment, something that likely makes it even harder for Mario Draghi to provide the markets with something to cheer about on Thursday.
Of course this Chinese data dump was bad news for the UK miners, which, in turn, spelled troubled for the FTSE, which fell around 55 points after the bell. This despite the fact that Brent Crude remains close to its latest, post-$40 per barrel, 3 month high, even if, admittedly, the black stuff has slipped around 1% from its recent peak in light of that troublesome news from China. Data-wise the UK once again offers very little for investors to chew on; however, the morning does see a speech from Mark Carney on the country’s EU membership, something that could cause some movement from the pound dependent on what arguments are put forward.
Despite breaking the chain of dismal German data, with the country’s industrial production figure coming in at3.3%, its highest level in 4 and a half years, the DAX still fell over 110 points at the open thanks to the macro-malaise inspired by China’s economic slowdown. Similarly, an on target French trade deficit figure (at €3.7 billion against last month’s €3.9 billion) couldn’t sufficiently reassure investors, leaving the CAC to join its German peer with a 1.2% decline. Still to come is the revised region-wide Q4 GDP figure, expected to remain unchanged at 0.3%; any movement in that number, however, is sure to cause further ructions later in the morning.
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