Nerves look a little frayed at the end of a tumultuous week for markets. Shares in Europe look set for a mixed open following a rise on Wall Street ahead of likely military action in Syria. The uncertain timeline for airstrikes makes timing an entry into the market tough.
Interestingly, given current debate over rebalancing international trade, China reported a rare trade deficit in March. A sharp drop in exports is of some concern for the country’s future path of economic growth. One data point does not make a trend, and this drop is likely a combination of exporters front-loading before possible tariffs and simply a pullback from a strong first two month of the year. The deficit might have been welcomed by US President Trump, but China’s trade surplus with the US rose significantly in the first quarter. If investors were looking for empirical evidence to tempt the White House to back off from a trade war, it won’t be found here.
Later, the Eurozone will release its own trade balance and the surplus is expected to have grown in February, also a Trump-unfriendly result.
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