Global risk sentiment hit a speed bump as Chinese export falls - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that the global risk sentiment hit a speed bump in the form of Chinese trade data that showed a 4.1% y/y fall in exports.

Key Quotes

“If you strip out the volatility that comes about as a result of the timing of the Chinese New year, this is about the same pace of decline as we saw for much of the last year, and is consistent with the idea that the pace of slowdown has slowed, but hasn’t been reversed.

Chinese inflation, money supply, retail sales, industrial production and Capex data are all due in the coming days but our overall sense is that growth is too soggy to support non-oil commodity prices and will probably be perceived as being consistent with continued gradual CNY depreciation. Not bad enough (yet) for full-blown risk aversion, but a speed-bump in the way of markets nonetheless.”