Global Stocks Fall on China Data Global stocks were lower after the release of fresh evidence that China’s economy is slowing.
China’s exports dropped 3.7% from a year earlier in September. The figures fueled fears that China’s third-quarter growth data, due next week, would fall below Beijing’s target, helping to stall the global stock rally that kicked off last week. (…)According to the General Administration of Customs, Chinese exports fell 3.7% in September from a year earlier in U.S. dollar terms following a 5.5% drop in August. Imports in September fell 20.4% from a year earlier, compared with a 13.8% decrease in August, the customs agency said Tuesday. (…)Economists said exports last month would probably have been stronger if it weren’t for anexplosion at the northern port of Tianjin in August and the temporary closing of factories ahead of a September military parade in Beijing aimed at reducing air pollution. (…)While Chinese imports have dropped sharply in recent months in dollar terms—tied in part to the yuan’s peg to the dollar and the declining cost of commodities such as crude oil and iron ore—the decline is much less sharp if measured in volume terms, economists say. (…)In addition, China’s crude imports rose in September to 27.95 million metric tons, compared with 26.59 million tons in August. So far in 2015, crude imports are up 8.8% to about 249 million tons.
The WSJ article failed to add that
- exports fell 1.1% in September in yuan terms compared with a 6.1% drop in August. The forecast was for a 7.4% slide.
- shipments to the U.S. rose 6.7% in September in U.S. dollar terms. Exports to the U.S. as a percentage of overall shipments jumped to their highest level since August 2010.
- crude imports rose from a three-month low.
- Iron ore imports increased to the highest level this year to near a record.
- China’s exports to every major market except Taiwan rose from August.
- monthly trends show a steady rise to most major export markets in the U.S. and Europe since last spring.
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