DAX: In order to feel more confident in our negative view we need a drop below 11800..Chart/Levels from Analyst, Nicole Elliott – Investors Chronicle.


China trade disappoints in April Monthly surplus a ‘mere’ $13.8 billion

Data out this morning showed a surprising drop of 2.7 per cent in exports from China, and another increase in imports, so that instead of analysts’ estimates of a surplus of $35 billion it was a fraction of that at $13.8 billion. This is an erratic series, and deficits were seen in 2009 and again in several months over the following years, but today’s number is towards the lower end of what’s been seen since international trade started booming in 2000.

As the European Commission yesterday reduced estimated economic growth in the region for this year and next, budget deficits have also come under scrutiny, especially that of Italy. They now calculate that rather than being capped at 2.04 per cent of GDP as agreed last year, it’ll hit 2.5 per cent this year and 3.5 per cent in 2020 – way above the 3 per cent maximum. Italian PM Giuseppe Conte struck back saying the calculations ‘seem ungenerous’, ‘bogus’ and show a ‘prejudiced attitude’. Brussels estimates that total debt to GDP will hit 133 per cent this year, and 135 per cent next year, the second highest in the EU and above the ceiling set.

Financial Markets and Political Commentary


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