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Analysts at TD Securities note that China’s both exports and imports in Oct were much stronger than consensus at 15.6% y/y and 21.4% y/y respectively (mkt 11.7% and 14.5% respectively).

Key Quotes

“Part of the reason is due to extra working days in Korea relatively to last year, while likely front loading ahead of US tariffs also plays a part. The trade balance came in slightly less than expected at $34.01bn versus consensus at $35.15bn.”

“ON a 12m basis, the China trade surplus with the US hit another record at $314.8bn and that with Europe increased to $136.2bn, but it declined further with Japan and the rest of the Asia.”

“No major implications for markets from this data but it does suggest that 1) US pressure on China trade will continue even with a divided Congress and 2) the outlook for China trade going forward will likely deteriorate quickly as forward looking data suggest.”