A concerning drop in Chinese imports last month ensured another weak start in what has been a momentum-sapping week.
While exports rose 14% year-on-year in March, imports tumbled 7.6%, nearly 6 times worse than the 1.3% decline estimated by analysts and the fourth negative reading in a row. The tariff war with the US is responsible for part of it; however, what has people worried are the signs that China’s domestic economy itself is in trouble.
This contributed to a fairly muted open. The DAX dropped 0.3%, pushing it closer towards 11900, while the CAC slipped back below 5480 as it dipped 0.1%. The FTSE did manage to eke out a 0.1% rise, though it remains caught between 7400 and 7450.
Sterling continued to show no signs of relief that Brexit has been delayed, the currency now requiring more from the government than mere postponement. Against the dollar it was flat, the wrong side of $1.306, having fallen late on Thursday; against the euro, meanwhile, it shed 0.3%, forcing it under €1.567 and to its worst price in 3 weeks.