CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Strong trade data from China, US pastor to appear in court today

07:08 12 October 2018

Summary:

  • Chinese exports rebound, trade surplus with US at record high

  • Treasury Department to advise Mnuchin not to name China currency manipulator

  • Court in Turkey to rule on pastor Brunson case today

The US equities added to previous losses yesterday experiencing another wave of selling. However, the scale of decline was about a half of what we saw the day before. On the other hand, shares pushed higher during the Asian trading with Chinese stocks shining. As turmoil eased somewhat the Japanese yen gave back some gains being the worst performing G10 currency at press time.

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app

HSCEI (CHNComp) found itself on the lowest level since early-2017 in the aftermath of yesterday’s slump. The index recovered today and is trading a notch below the lower limit of the previous consolidation range. Source: xStation5

A recovery on the Chinese stock markets can be to some extent ascribed to the better-than-expected trade data from China. Chinese exports rebounded in September advancing 14.5% YoY in USD terms. This is a stellar outcome as a decline from prior 9.1% YoY (revised from 9.8% YoY) to 8.2% YoY was expected. Moreover, imports were forecasted to decline from 19.9% YoY (revised from 20% YoY) to 15.3% YoY while the actual data showed a decrease to 14.3% YoY (also in USD terms). In turn the Chinese trade surplus was $31.69 billion in September against a forecast of $19.2 billion. Taking a look solely on the China-US trade data one could saw that Chinese exports to US advanced 14% YoY while imports contracted 1.2% YoY in September. This was the first contraction since February. In turn the Chinese trade surplus with the US hit record high at $34.13 billion in September. One reason behind such a good data could be an incentive to front-load goods by importers before tariffs take full effect. In such scenario one could expect data to deteriorate next year.

China’s trade surplus with the US and exports hit record high in September. Source: Bloomberg, XTB Research

While the trade data may be used by the United States as an ammunition in the ongoing trade war some relaxing news concerning the topic spurred elsewhere. In the past weeks markets feared that the US administration may label China the currency manipulator and therefore stiffen rhetoric what could lead to the potential escalation of the conflict. As Bloomberg reported today the US Treasury Department advised Secretary Steven Mnuchin that China in fact is not doing so. Nevertheless, according to the Bloomberg report, China is likely to stay on the monitoring risk because of its significant trade surplus with the United States. Therefore now it is all up to Mnuchin to follow the advise of his Department’s staff or bow before pressures from the US President Donald Trump. The US semi-annual foreign exchange report is due next week.

USDTRY entered a downtrend after peaking in the vicinity of 7.1 in August. The pair found itself within the zone that served as a floor during the past two months. The ruling in the US pastor case will be crucial for the pair. Source: xStation5

Last but not least, TRY traders should keep on guard today as Andrew Brunson, the US pastor imprisoned in Turkey, will appear in court today. The Turkish President Recep Erdogan announced some time ago that when it comes to Brunson it is all up to the court now. Such an announcement was viewed as an attempt to soften tensions between the United States and Turkey. Erdogan was reluctant to releasing the US pastor before and that kind of remark could be viewed as a PR move. Why? Firstly, in case the pastor is released Erdogan may say that he did not concede to the US (bolstering his image of a tough guy) but the court’s will was to release the pastor. Secondly, he could use such ruling to show that the Turkish administration of justice is fully independent from government pressures. On the other hand, if Brunson is found guilty he could serve as much as 35 years in jail.

In other news:

  • Italian parliament voted in favour of the controversial budget plan

  • 5.3 magnitude earthquake hit Kanto region in Japan

  • US Treasury yields move higher to 3.1745

  • US dollar steadies after yesterday's sell-off

  • Nikkei up 0.3%, S&P/ASX 200 adds 0.2%

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back
Xtb logo

Join over 1 Million investors from around the world

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
adobe_unique_id cc 1 March 2025
test_cookie cc 1 March 2024
SESSID cc 9 September 2022
__hssc cc 1 March 2024
__cf_bm cc 1 March 2024
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-22576382-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
AnalyticsSyncHistory cc 8 October 2022
af_id cc 31 March 2025
afUserId cc 1 March 2026
af_id cc 1 March 2026
AF_SYNC cc 8 March 2024
__hstc cc 28 August 2024
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
muc_ads cc 7 September 2024
lang
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 28 August 2024

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
personalization_id cc 7 September 2024
UserMatchHistory cc 8 October 2022
bcookie cc 8 September 2023
lidc cc 9 September 2022
lang
bscookie cc 8 September 2023
li_gc cc 7 March 2023

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language