From Marc to Market:
Overview: The market sentiment remains fragile. Equities are mostly lower. Japan was a notable exception, and concerns about China's economy after a sharp decline in imports took mainland and Hong Kong listed companies sharply lower. Europe's Stoxx 600 is giving back yesterday's 0.35% gain plus more. Bank shares are off 0.65% after rallying 4.20% over the past two sessions. US equity futures are heavier. Benchmark 10-year yields are mostly a couple basis points softer in Europe, but the 10-year Gilt yields are a little higher. The 10-year US Treasury yield is about three basis points lower to 3.47%, and the two-year yield is back below 4%.
The dollar recovered in the North American session yesterday and is mostly firmer today. Yet, given its recent losses, today's upticks look more consolidative than a reversal. The focus is on the debt ceiling, where a meeting of Congressional leaders and President Biden takes place today at the White House. Bank shares also remain in focus. Tomorrow the US reports April CPI figures. The greenback is also enjoying a firmer bias against most emerging market currencies today. Gold is firm but in about a $10 range on either side of $2020. Last week's high was near $2063. June WTI peaked yesterday near $73.70 and has pulled back to around $72.15 today. News of softer Chinese demand may be a weight today, after a sharp run-up in recent days. Nearby support is seen near $71.80........ China's trade surplus widened to $90.2 bln in April, up from $88.2 bln in March, and $49.5 bln in April 22. Economists had expected the trade surplus to narrow. Exports were weaker but imports even weaker still. Exports rose 8.5%, down from 14.8% in March, but were slightly above expectation. Imports had been projected to rise by 0.2% in Bloomberg's survey, but instead fell by 7.9%, the second-consecutive year-over-year decline. Despite the larger surplus, the weakness of imports reinforces the sense that the Chinese economy is struggling, which was not shaken-off fully even though Q1 GDP was stronger expected. Many look for the some more monetary accommodation before the end of the quarter.....
....MUCH MORE
Which was exactly the point of the outro from "World Bank: "Commodity Prices to Register Sharpest Drop Since the Pandemic" (special focus: metals)":
If you saw the Chinese export numbers an hour ago you know there is no Chinese cavalry riding to the rescue of the Western economies. Chinese imports were flat. No uptick in demand for anything the west produces. Exports increased 8.5%, showing just how dependent China remains on the West staying out of recession., CNBC:
China’s exports rose 8.5%, continuing its growth streak at a slower pace
