Oil Up Above $42 per Barrel; China Exports Above Expectations – Deutsche Bank
Research Team at Deutsche Bank, suggests that the risk is enjoying a
strong performance, with equities positing solid gains across the board
and oil rallying to its highest level since November (WTI above $42).
“Bloomberg Financial LP cited a report that Saudi Arabia and Russia had “reached a consensus on an oil freeze during talks on Tuesday” as being behind the oil gains. The gains in risk assets came despite commentary from the IMF that the world economy would grow less quickly this year than previously expected. The gains have been sustained across Asia, with most markets up more than one percent by midday. Bonds have weakened a bit further as a consequence.
The Chinese trade data has outperformed expectations for March. Exports were up 18.7%yoy in CNY terms, while imports were down 1.7%yoy. Both numbers were better than expected, i.e. China is both exporting and importing more than thought. Exports were up 11.5%yoy in dollar terms. Base and seasonal effects have likely boosted the result. If we consider the 3 months to March then exports in USD terms are still down close to 10% compared to the same 3 months last year.”