Chinese Exports Slump Most Since 2009

Equity futures markets (US and Asian) are sliding off overnight highs amid the worst YoY exports performance in China since October 2009. The 3.1% drop (compared to expectations of a 3.7% gain) is the biggest miss in a year and the first negative print since January 2012 – making the second big miss in a row as the ‘fake’ trade data driven by the shadow-banking-arbitrage is unwound out of historical data. Notably, related to the CCFD debacle, copper imports fell 20% in H1 2013 compared to H1 2012 – which helped to create another huge miss in China imports data overall (-0.7% vs expectations of a 6.0% jump). It is perhaps no surprise – given the sheer size of these misses, that China Customs officials stated that ‘the country faces serious challenges in exports and imports.” They blame weak external demand and a strong Yuan as the vicious export-driven economy-slowdown drags on industrial production’s import demand. Equity markets are recovering their knee-jerk reaction – as this must be good for moar printing?

 

 

Quite an impressive miss…

 

Charts: Bloomberg

    

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