13.01.25 - China surprises

China’s exports surged in December by 10.7% from a year earlier, higher than the expected 7.3%, while imports were up 1% (expected -1.5%). Ahead of Donald Trump’s return to the White House, China’s trade surplus hits a record high.

Markets: Chinese indices managed to recover some of the losses after the release, but ended the session in the red. Downward pressure in equity markets across the globe amid rising U.S. interest rates and risk aversion.

My View: somehow the upbeat in exports does only surprise on first sight. It seems companies rushed to deliver goods out of the country before Donald Trump returns to the White House. More evidence about China’s economy with data on GDP growth, retail sales, or industrial production will follow on coming Friday. This has room to sway market sentiment. I remain optimistic that Chinese stocks have an upside potential, favoring the internet sector, implemented via an ETF.

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