China’s May trade data

On June 10, China released its trade data for May. The country’s dollar-denominated exports rose 1.1%, while its imports in US dollar terms fell 8.5%. China’s May trade data was a mixed bag for markets. While the exports were better-than-expected, the imports were lower compared to the expectations.

China’s May Trade Data: Exports Beat, Imports Miss Expectations

Mixed data

Except for April when China’s imports rose 4%, the country’s import data has been weak and fell for four consecutive months before April. After accounting for May, China’s imports have fallen on a year-over-year basis in five of the last six months. Fewer Chinese imports reflect sagging domestic demand. While China said that its economy grew 6.4% in the first quarter, some of the recent data points have shown moderation in the economy. Falling imports point to a slowdown in China’s domestic demand. Chinese equity markets have underperformed global markets this year. The iShares China Large-Cap ETF (FXI) has risen 3.7% year-to-date, while the SPDR S&P 500 ETF (SPY) has gained 15.6%.


Since China’s exports increased more than expected and imports missed the mark, the country’s trade surplus ballooned to $41.65 billion. China’s May trade surplus was almost double analysts’ expectations—a sharp rise from the $13.8 billion surplus reported in April. China’s April trade surplus was lower than expected. The country’s imports rose, while exports fell in April.

Amid the escalation in the US-China trade war, there has been pressure in Chinese stocks. Alibaba (BABA), Baidu (BIDU), and (JD) have lost 15.5%, 33.4%, 11.1% in the second quarter. Last year, Alibaba’s co-founder Jack Ma predicted that the US-China trade war could last for decades. Despite the second-quarter sell-off, Alibaba has risen 12.5% for the year. US stock markets have also been impacted by the trade war. They have recouped some of their losses in June.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.