Chinese exports plunged 18% in February, leading to the second-largest trade deficit on record. Calendar effect, CNY strength and hot money inflows offer the explanation. What is more disturbing about the Chinese economy is the persistent overcapacity-induced PPI deflation, which not only puts downward pressure on domestic corporate solvency but risks exporting deflation to the rest of the world.
Please find our weekly metals market chartpack covering week 10 of 2014 here.
The latest Euro Rates Update is now available
During the past 10 months the Emerging Market universe has seen at least three distinct sell-off rounds, revealing different degrees of vulnerability – but who is the most vulnerable?
China pressures risk sentiment today. Raised outlooks for the Netherlands and Belgium. Payrolls confirm: tapering is here to stay. LTRO paybacks on the rise again. Light macro calendar, some auctions on the pipeline.
With ECB rather relaxed about EUR, the US payrolls so-so, the only hope for USD now is if bad news from China escalate...