SHANGHAI, Sept. 9 (SMM) – China’s imports dropped 13.8% in August, falling for the 10th month in a row and posting the largest decline in five months. Exports fell the second straight month by 5.5%, though the drop is narrower compared to July’s 8.3% decline. China’s exports to the US, Europe and Japan saw slower slide due to recoveries in advanced countries. The Ministry of Finance said it will push more effective fiscal policy, including increasing expenditure and cutting tax as well as the push of Public-Private-Partnership. Additional stimulus measures are expected in China from the poor economic indicator.
The Fed announced the Labor Market Conditions Indicators (LMCI) was 2.1 in August, better than the 1.5 expected, which is believed to better mirror real conditions in the labor market compared to the non-farm employment data. The latter was poor, though. US unemployment rate in August fell.
Eurozone Q2 growth was revised upward to 0.4% on QoQ basis, and 1.5% on YoY basis, both better than market expectations and Q1. European Central Bank shows new government and institution bond, collateral bond and assets backed security totaled EUR 51.6 billion in August, and grew most slowly since the push of quantitative easing in March. This triggers market expectations that the bank will tighten its monetary policy.
The US dollar index fell 0.26%; the euro against the US dollar rose 0.3%. European and US stocks mostly increased. LME base metals prices closed the day with gains except for tin.