One of the main news event of this week is Chinese Trade Balance.
The Chinese economy is slowing and this week’s trade balance will tell us just how much export growth slowed in at the beginning of the year. Exports are expected to have grown by only 1% in January, down from 4.3% at the end of last year. If exports decline and the trade surplus contracts concerns about slower Chinese growth could drag equities and currencies lower. The Australian and New Zealand dollars should suffer the most as investors wonder whether it was wise for the Reserve Bank of Australia to drop its easing bias. At the start of the year we saw how concerns about U.S. and Chinese growth weighed on the markets and this is a reason why risk is vulnerable this week
The Chinese economy is slowing and this week’s trade balance will tell us just how much export growth slowed in at the beginning of the year. Exports are expected to have grown by only 1% in January, down from 4.3% at the end of last year. If exports decline and the trade surplus contracts concerns about slower Chinese growth could drag equities and currencies lower. The Australian and New Zealand dollars should suffer the most as investors wonder whether it was wise for the Reserve Bank of Australia to drop its easing bias. At the start of the year we saw how concerns about U.S. and Chinese growth weighed on the markets and this is a reason why risk is vulnerable this week
