Market Highlight 11.09.2024

   China’s export activity surpassed expectations in August, defying growing trade barriers and providing a boost to the world’s second-largest economy amid its current challenging recovery phase. Export volumes in August rose by 8,7% year-on-year, up from a 7% increase in July and exceeding the forecasted 6,6%. This export growth occurred despite rising trade barriers targeting Chinese goods. In July, the European Union imposed higher tariffs on Chinese electric vehicles. The U.S and Canada also announced plans to increase tariffs on Chinese goods, including electric vehicles. However, Chinese exporters have been able to adapt by redirecting trade flows and benefiting from a weaker CNY, while these new tariffs only target a small portion of China’s overall exports. China’s export growth to the U.S, its second-largest trading partner, surged to 13,4% year-on-year in August, up from 8% in July. Meanwhile, exports to ASEAN and the EU, China’s first and third-largest trading partners, slowed but still grew by 9% and 5%, respectively.
  The USD Index lost its upward momentum at the end of yesterday as markets awaited the release of U.S August CPI data tonight and the debate between the two U.S. presidential candidates this morning. Should candidate D. Trump maintain his lead in this debate, the USD’s rally is likely to gain further short-term support.
  The USD/VND interbank exchange rate fell slightly by about 25 dongs yesterday, closing at 24.670, with selling pressure dominating the session. The 24.600 - 24.700 range is expected to remain the main trading band for the market today.

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