Exports in China, a major component of China’s growth, declined by 6.8 percent in November year on year, worse than the 5 percent drop in October, and revealing weak global demand.
China’s imports declined 8.7 percent in November, highlighting further import weakness, although November’s import data was not as severe as the 12.6 percent plunge in October.
Commodities are taking a hit on Tuesday, particularly mining companies in Australia that depend on the Chinese economy for growth.
New Japanese data released today showed that Japan’s economy grew 1 percent in the third quarter, beating forecasts, lifting the Yen, and lowering monetary easing expectations from the Bank of Japan.
Crude oil remains on the spotlight on Tuesday after the recent slide on Monday back to 2009 levels hurt shares of energy companies and raw materials across the globe after OPEC decided on Friday to maintain its current level of production.
Falling oil prices have also dented inflation expectations, making it challenging for central banks to reach their inflation targets.
The sudden fall of WTI oil prices on Monday which tumbled below $38 a barrel, creates a challenging environment for some U.S. shale companies to survive since Saudi Arabia, which derives 80 percent of its revenue from oil, still has hundreds of billions in foreign currency reserves from boom years when oil was trading high, although their cash pile is shrinking.
New global oil and gas production projects worth an estimated $ 1.5 trillion are at risk because of plunging oil prices.
Currently, WTI January 2016 futures are trading up 0.29 (+.77 percent) to $37.94 a barrel.