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Home / Business / China trade data help keep markets calm, but can the mood remain that way?

China trade data help keep markets calm, but can the mood remain that way?



Markets are calmer today as PBOC slightly outperformed yuan and Chinese exports were better in July.

  China

ForexLive

Risk assets recover to date from the above events, with Chinese trade data once again demonstrating that exports are keeping pace with the US despite the global slowdown in growth and continued trade tensions.

Although there are positive results, the question is how long things can keep up in this way. Especially if the prospects remain uncertain and uncertain.

The above trade data continue to support weak and subdued domestic demand as imports are still having problems. China's trade surplus with the US will also increase and this raises further concerns over the trade dispute between the two countries.

This will only aggravate the problems of Chinese domestic demand and the global economic situation, general trading conditions by and large.

Even today's yuan fixing is hardly convincing in my view. In the last few days, it was clear that China would not let its currency depreciate quickly. By pushing markets above the $ 7.00 per dollar threshold, they can now trade more freely to hold a weaker yuan in the middle of the trade war. I see the semblance of a currency war between countries around the world.

Against this backdrop, by and large, I do not see any positive impact on risk, and that will certainly lead to risk assets sooner rather than later.


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