Oddbean

China's exports and imports return to growth, signalling demand recovery ========== China's exports and imports returned to growth in April after contracting in the previous month. Shipments from China grew 1.5% year-on-year last month, in line with expectations, while imports increased 8.4%, beating expectations. The data suggests that policy support measures implemented by Beijing are helping to stabilize investor and consumer confidence. However, analysts are unsure if the trade bounce is sustainable. China's trade surplus grew to $72.35 billion in April. The weak domestic demand and overcapacity in China's manufacturing sector continue to pose challenges for the economy. Beijing has set an economic growth target of around 5% for 2024 and may need to implement more stimulus to achieve it. The Bank of England is considering lowering interest rates, with Governor Andrew Bailey expressing optimism about the direction of the economy. The pound fell and gilt yields dropped after the announcement. The dollar gained against the yen for the third consecutive day. Gold prices may test support but are expected to end the year higher. Analysts recommend switching from the S&P 500 to gold. Overall, there is better risk appetite in the market, leading to good price gains for gold and silver. Surprising job numbers in the US could prompt the Federal Reserve to cut rates early. Modest downside corrections are expected for gold and silver. #China #Exports #Imports #DemandRecovery #PolicySupport #InvestorConfidence #ConsumerConfidence #TradeSurplus #DomesticDemand #Overcapacity #EconomicGrowthTarget #BankOfEngland #InterestRates #Dollar #Yen #GoldPrices #RiskAppetite #JobNumbers #FederalReserve https://www.kitco.com/news/off-the-wire/2024-05-09/chinas-exports-and-imports-return-growth-signalling-demand-recovery