Something for your Espresso: No help for commodities from China (yet)
![Something for your espresso](https://stenoresearch.com/wp-content/uploads/2023/01/Something-for-your-espresso.png)
Good morning from Europe!
Bad news out of China from the morning with weakness in export numbers, while import numbers improved slightly from already weak levels.
Exports are down 7.5% year over year, which tells a story of idiosyncratic weakness in Chinese goods manufacturing paired with a clear slowdown in the Western economy through May.
Commodities are almost perfectly correlated to Chinese import numbers and still suffer from the lack of momentum despite the Chinese reopening.
Chart 1: China needs to rebound before commodities find firm ground
China’s export/import activity is telling for the global economy and commodities remain a sell. Meanwhile, the TRY is getting annihilated despite Erdogan’s attempts to restore economic credibility.
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