All the day’s economic and financial news, as new Chinese trade figures beat expectations
- Chinese imports surge by 18.7%, suggesting strong demand
- US surplus hits record high, but trade with North Korea tumbles
- MSCI World Index hits new peak
- FTSE 100 hit new closing high last night
- Coming up: US inflation; IMF meeting
India’s stock market has been swept to a new alltime high today:
The Nifty has hit 3 fresh records in the last 2 months but it has been one roller-coaster ride! pic.twitter.com/dE3NARJppK
China also hit a milestone for iron ore imports last month, as it bought more higher-quality stocks from abroad.
Bloomberg has the details:
Iron ore imports by China surged above 100 million metric tons to a record, smashing the previous high set in 2015, as the country’s concerted push to clean up the environment stoked demand for higher-grade material from overseas while hurting local mine supply.
Newsflash: Uber has filed an appeal against the decision to withdraw its licence to operate in London.
Uber has now filed an appeal against TFL’s decision not to renew its licence in London.
“While we have today filed our appeal so that Londoners can continue using our app, we hope to continue having constructive discussions with Transport for London.
“As our new CEO has said, we are determined to make things right.”
Yesterday, Theresa May once again claimed the energy market was broken as she brought forward draft legislation for a price cap.
But the big six suppliers, who have around 80% of the market, lost a record number of customers in September.
Big six energy cos lost a record number of customers in September (163K), says Jefferies. More than 1m people have left big six this year pic.twitter.com/C9GxjBrrIu
The FTSE 100 isn’t sharing in today’s rally.
Stocks in London have dropped back from last night’s record close, as the pound’s recovery weights on exports. The Footsie is now down by 26 points at 7530.
The bulls have the edge, and a strong US and European earnings should stand them into good stead for the rest of the year.
Sterling is rallying this morning, thanks to signals that Britain and the EU might make progress in the Brexit talks.
It has risen over $1.33 against the US dollar for the first time in almost two weeks, and is also recovering against the euro.
This isn’t exactly a fresh-take; a transitional period has been batted about since Brexit day dot. And [EU negotiator Michel] Barnier wasn’t actually that much of a doomsayer on Thursday, stating his belief that ‘decisive progress’ was within reach in the next 2 months.
But investors are being selective in what Brexit news they want to listen to, with this Handelsblatt report sending sterling sharply higher.
Marc Ostwald of ADM Investor Services says the Chinese economy seems to be in relatively good health, ahead of next week’s Communist Party Congress.
The September Trade data painted an overall much stronger picture of domestic demand than many had been anticipating, and effectively made clear that the weaker August readings did not signal impending weakness.
That said, some of the boost to imports was probably attributable to some front-loading of imports ahead of last week’s National Day/Autumn Festival holiday, with more working days this September probably also giving a boost.
The oil price has jumped this morning, as the markets react to China’s 18.7% surge in imports.
Brent crude has jumped by 1.5% to $57.07 per barrel, with traders anticipating higher demand for energy.
Best/worst performers –
Oil – US Crude: 1.2%
Oil – Brent Crude: 1.1%
Spot Gold: 0.2%
Spot Silver: 0.2% pic.twitter.com/KwgdRsvbWJ
Buoyancy among commods, esp iron ore and copper helping, after China trade numbers. Risk is a USD pop this afternoon after US CPI
China’s trade with North Korea slumped in September, according to today’s trade data, in a sign that United Nations sanctions against Pyongyang are being implemented.
Chinese imports from North Korea fell by almost 38%, including imports of iron ore and coal according to customs spokesman Huang Songping. Chinese exports to North Korea also fell, by 6.7%. More details here.
Today’s Chinese trade data might irk Donald Trump. According to Reuters, China’s trade surplus with the US has hit an all-time high.
China’s trade surplus with the United States in September rose to $28.08 billion versus $26.23 billion last month, Chinese customs data on Friday showed.
The surplus was the highest ever with the U.S. for any single month, based on Reuters calculations based on official data going back to 2008.
The strong Chinese trade data sent MSCI’s All-Country World Share index up to a new peak, at 494.84 points.
The index, which tracks equities across the globe, has been rising steadily this year:
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Huang Songping, spokesman for the Customs department told a press conference on Friday that trade for the first three quarters improved due to a recovery in overall global and domestic economic environment. There has been a return in global demand, he added.
Barring unforeseen events, China’s will post double-digit growth in foreign trade this year, said Huang.
“It seems the global demand is still there to support the demand for Chinese exports.”
This morning’s Chinese trade data was fairly supportive of a fairly robust domestic economy.
Link : World stocks hits fresh highs as Chinese imports surge – business live