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What's going on?
More good news from China: the country bought and sold more goods than expected in November (i.e. imports and exports), and its the first time both of those figures have increased in China since 2014!
What does this mean?
Buying and selling more goods is generally a sign of an improving economy. Exports (what China sells abroad) inched up by 0.1%, which is a pretty big deal since the countrys exports have been consistently decreasing for the past nine months. Economists say that a weaker Chinese currency (which makes Chinas exports cheaper for international buyers) and strong demand from households and companies in the US and Europe are to thank. On top of that, China is importing much more than economists had expected, a sign that the economy is continuing to improve (otherwise, it wouldnt be buying more new stuff from abroad!).
Why should I care?
The bigger picture: The improving US economy should help China grow.
The US is the biggest market for Chinas products. China is the worlds largest trading nation, and exports are the engine of the Chinese economy. However, weak demand from the US and other Western countries following the financial crisis (among other factors) has damaged the exceptional economic growth that China had known in years past. However, Thursdays data is in line with the better economic tone emanating from the US and Europe right now.
For markets: Rising Chinese imports are a boon for commodities traders and mining companies.
Chinas import surge in November was powered by the purchase of raw materials like iron ore, coal, and copper. Miners, like Rio Tinto, will be happy to hear Thursdays numbers strong Chinese demand despite higher prices for these raw materials (theyve increased significantly this year) is good for profits in the mining business.
Originally posted as part of the Finimize daily email.
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