China, Copper and Futures for the last 2 trading days + Trading Levels 4.20.2023
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Bullet Points, Highlights, Announcements:
By Mark O’Brien, Senior Broker
General: Albeit a lurching progression, as it’s coming out of the first quarter, China’s Post-Covid recovery looks to be gaining traction – arguably more so than here in the U.S. – if their trade balance numbers are a good yardstick. Data released early last week showed a meaningfully-above-consensus $88.2 billion surplus, including a year-over-year 14.8% increase in exports (its first YOY gain in six months) and a stout 28% monthly increase in crude oil imports (12.3 million barrels per day) over February. Iron ore and coal imports also showed considerable month-over month gains. We keep an eye on this country’s economic health because it accounts for ±18% – almost a fifth of the world’s GDP, second to the U.S. at ±25%. The next 10 countries combined, including Japan, Germany, the U.K., India, Canada and South Korea account for another ±30%.
With their economies in competition with each other, further recovery for China against the U.S.’s current grind to control inflation and stave off a recession – even the slightest of one – puts pressure on the dollar, now ±6 months in decline from its 20-year highs. This bodes well for physical commodities such as copper, crude oil grains and soy complex markets. Keep an eye on the world economic picture – particularly China’s journey to recovery – to provide guidance for your trades.
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Futures Trading Levels
Economic Reports, Source:
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