China’s imports, exports exceed forecasts

96.931.

Investors were closely monitoring US Senate testimony by former FBI director James Comey late yesterday, worried this could dampen already flagging momentum for US President Donald Trump’s agenda of rolling back regulation and overhauling the tax code.

In written testimony, Comey – fired by Trump last month – said that the president asked him to drop an investigation of former National Security adviser Michael Flynn as part of a probe into Russia’s alleged meddling in the 2016 presidential election. – Reuters CHINA reported stronger than anticipated exports and imports for last month despite falling commodity prices, suggesting the economy is holding up better than expected despite rising lending rates and a cooling property market.

Concerns over China landed squarely back on global investors’ radar after Moody’s Investors Service downgraded its credit rating last month, saying it expects the country’s financial strength will erode in the coming years as growth slows and debt continues to rise.

China’s imports have been strong in recent months, driven largely by iron ore and other commodities used to feed a year-long construction boom, while exports have rebounded from several years of contraction thanks to improving global demand.

While the strength of the May import data surprised economists, and suggested domestic demand remains solid, analysts still expect the world’s second-largest economy to lose momentum gradually over the course of the year due to policy tightening.

Government measures to cool heated home prices are expected to dampen property investment eventually and a crackdown on riskier types of lending is pushing up financing costs. Outlook