Morning Call Europe to open mixed after China exports slump – By Jasper Lawler, Head of Research LCG – London Capital Group

 

 

By LCG Research

6.45am BST Friday April 13th, 2018

London Capital Group

Nerves look a little frayed at the end of a tumultuous week for markets. Shares in Europe look set for a mixed open following a rise on Wall Street ahead of likely military action in Syria. The uncertain timeline for airstrikes makes timing an entry into the market tough.

Interestingly, given current debate over rebalancing international trade, China reported a rare trade deficit in March. A sharp drop in exports is of some concern for the country’s future path of economic growth. One data point does not make a trend, and this drop is likely a combination of exporters front-loading before possible tariffs and simply a pullback from a strong first two month of the year. The deficit might have been welcomed by US President Trump, but China’s trade surplus with the US rose significantly in the first quarter. If investors were looking for empirical evidence to tempt the White House to back off from a trade war, it won’t be found here.

Later, the Eurozone will release its own trade balance and the surplus is expected to have grown in February, also a Trump-unfriendly result. If

Opening Calls

FTSE 100 to open 5 points lower at 7253

DAX to open 10 points higher at 12,425

CAC to open 1 point higher at 5310

 

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About the author

Jasper delivers regular commentary, seminars and webinars on market news, trading analysis, strategy and psychology. He is regularly interviewed by BBC News, Bloomberg, CNBC and Sky News, and has featured in The Times, Guardian and Daily Telegraph. Jasper hosts a weekly charting analysis webinar. He is qualified as a Chartered Market Technician (CMT) with the Market Technician Association, and has a degree in Finance and Economics.