Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Global markets spooked as China reports weakest trade for two years

The FTSE and sterling face rocky week as Chinese data drags on markets and Brexit deal vote looms

Caitlin Morrison
Monday 14 January 2019 05:43 EST
Comments
China demands US stop 'groundless' attacks as trade war tensions surface during Pompeo's Beijing visit

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Markets tumbled around the world on Monday after China reported its weakest trading data since 2016, fuelling concerns that the global economy is heading into a slowdown.

China reported its biggest monthly fall in exports for two years, prompting a fall in Asian stocks and subsequently knocking European equities. The FTSE 100 fell 0.5 per cent, and US futures are set to open lower.

Chinese exports fell sharply by 4.4 per cent in December compared with same month one year earlier.

The data was attributed partly to the country’s ongoing trade war with the US, but exports to the rest of the world also fell.

Naeem Aslam at Think Markets said the numbers were “devastating” and “got all the alarm bells ringing once again”.

“If you ever need any evidence that how the trade spat can impact the country's economic health then this number is clearly a major factor here. The lower export number also means that lower jobs which means another direct impact on the economy,” he said.

“Donald Trump may be pleased to see these numbers because it shows that his policies have clearly brought China to its knees. Clearly, Beijing must do something to put a stop to this chaos.

“President Trump may actually beat his chest even more by looking at the fact that China's trade surplus with the US is at a 10-year high.”

Support free-thinking journalism and attend Independent events

Meanwhile, both the FTSE and the pound are set for a volatile week as the British government prepares to vote on Theresa May’s Brexit deal on Tuesday. All signs point to the deal being rejected, but it is unclear what the consequences of such a result will be, which makes it difficult to predict what direction markets will take.

Hussein Sayed, chief market strategist at FXTM, said investors “seem to be on wait-and-see” mode ahead of the vote, with the pound hovering around $1.285.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in