Global stocks, oil, and risk-sensitive currencies dipped overnight amid concerns on the global economic outlook following an unexpected fall in Chinese trade data.
Weak China Trade Sparks Concern on Global Slowdown
China trade data released yesterday afternoon shocked markets with results much weaker than expected, with exports falling 4.4% y/y in December amid the trade dispute, and the biggest decline in 2 years. Imports also contracted and missed expectations dropping 7.6%.
The NZD and AUD backtracked on the soft data but have since seen some relief as market optimism returned to markets. This was helped by President Trump predicting the United States would reach a trade deal with China.
GBP remains resilient ahead of crucial Brexit vote tonight
The pound rose slightly this morning in the lead up to tomorrow mornings key Brexit parliamentary vote. UK Prime Minister Theresa May attempted to swing voters by urging lawmakers to give the deal “a second look” insisting new assurances on the Irish border had “legal force”. May has warned opponents of her Brexit deal that they risk “letting the British people down” as it looks highly likely she will be defeated, with no majority for May’s deal. The most likely outcome is a request for an extension on the current 29th March deadline to leave the EU.
Locally the key focus today will be this mornings NZ Business Confidence survey released at 10am
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