China’s trade surplus with the US is hitting a record high.
Experts say the June report shows exporters are scrambling to push product before major tariffs come into effect, cutting into business for Chinese companies. This will likely lead to a steep decline in the surplus in the coming months. But, there may still be a ray of hope for China as US officials are willing to open the lines of communication again and renegotiate trade deals with the eastern country. Washington has slapped tariffs on $34 billion worth of Chinese products with more to come if the trade war continues to escalate.
While this volatility between the world’s largest economies continues, investors still seem to be ignoring the growing problem. The Nikkei bloomed in overnight trading, gaining 1.8 per cent before closing at 22,597.
Wall Street is expected to end the trade week higher following a roll-out of positive big business earnings reports.
Oil is a different story as the price of crude continues to fall with Libyan exports expected to return to the market soon. The price of crude is just above 70 dollars a barrel this morning.
The Loonie is sliding to 75.75 cents US.