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A hard landing after all?

Published Tuesday, April 14th, 2015

As Wall Street prepares itself for disappointing figures on 1Q earnings it was caught by unexpectedly poor trade data from China yesterday. Exports down 15% year-on-year against expectations for a 9% gain and imports down 12.7% resulting in a monthly trade balance of $3.1 billion against forecasts of a $40 billion surplus. Is the Chinese landing moving from soft to bumpy and could it become hard? We will know a little more tomorrow when the official GDP growth figures for 1Q are released.

Morning highs on Brent of $59.54 bbl and on WTI of $53.10 bbl did not last long. They were sold into taking Brent down to $57.46 bbl and WTI to $51.47 bbl. The contracts eventually settled on Brent at $57.93 bbl (+6) and on WTI at $51.97 bbl (+27). The Saudi state news agency confirmed that the government would support a production cut but only “with participation from major oil producing and exporting countries and it must be transparent”. The market clearly currently sees no chance of that happening.

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Posted by David Hufton