Breaking news: China’s trade lags in June as global demand falters

China’s exports and imports both shrank faster than expected in June, adding to growing trade pressure on the world’s second-largest economy.

Exports fell 12.4 percent from the previous year in dollar terms, official data showed, while imports fell 6.8 percent. In May, exports and imports fell by 7.5 per cent and 4.5 per cent respectively.

China̵[ads1]7;s exports surged during the pandemic, but face weaker international demand this year as global interest rates rise.

Headwinds from the trade have come alongside a weak economic recovery since Covid-19 controls were lifted in the country at the start of the year and continued weakness in the property sector which has led to calls for further stimulus.

Asian markets rose on Thursday after weaker-than-expected consumer price index data from the United States eased pressure on the Federal Reserve for further interest rate hikes.

China’s CSI 300 and South Korea’s Kospi each rose 0.7 percent, while Japan’s Topix rose 0.8 percent and Hong Kong’s Hang Seng index rose 2.1 percent.

Beijing pledged to support tech platforms on Wednesday, suggesting a crackdown on the sector was coming to an end.

The moves tracked a strengthening in US markets, with the S&P 500 rising 0.7 percent on Wednesday. US core CPI came in at 4.8 percent, lower than the 5.0 percent forecast by economists polled by Reuters.

South Korea: Economists expect the Bank of Korea to keep interest rates at 3.5 percent for the fourth meeting in a row.

Meetings: The EU-Japan summit begins in Brussels, where Council of Europe President Charles Michel, European Commission President Ursula von der Leyen and Japanese Prime Minister Fumio Kishida are participating.

Thailand: The Storting will vote for a new prime minister. Pita Limjaroenrat, whose progressive Move Forward party won big in May’s general election, still faces obstacles to replacing the military-backed government, including questions about a possible breach of electoral rules.

Markets: Futures in Hong Kong pointed higher on Thursday morning. U.S. stocks and Treasuries rose on Wednesday as the dollar fell after inflation fell more than expected in June, easing pressure on the Federal Reserve to continue raising interest rates. The S&P 500 stock index closed 0.7 percent higher, while the Nasdaq Composite rose 1.2 percent.

Disney has extended the contract of its CEO Bob Iger until the end of 2026, extending what was intended to be a short stay for the executive who returned to the entertainment giant last November.

Iger, who led Disney for 15 years in his first term as CEO, replaced his handpicked successor Bob Chapek, who lasted just 33 months during a rocky tenure.

He had been tasked with finding a new successor before he leaves at the end of 2024, but Disney said Wednesday that the board voted unanimously to extend Iger’s term by two years.

President Joe Biden said Wednesday that the United States is considering sending long-range missiles to Ukraine after France and Britain sent similar systems, a potentially significant shift as Washington changes its risk calculus in Ukraine as the war drags on.

Kiev has long sought the weapons to better penetrate Russian defenses, but Washington has held back for fear of Russian escalation. France announced this week that it would send such weapons, and Britain has already sent its Storm Shadow missiles.

“They already have the equivalent of ATACMS now. What we need most of all are artillery shells,” Biden said, using the name of the US long-range missiles as he boarded a flight from Vilnius, where he was attending a Nato summit, to Helsinki.

President Joe Biden repeated assurances that the United States was committed to supporting Ukraine in the long term at the end of a wide-ranging speech that concluded his visit to Lithuania for a NATO summit.

“We will not waver, we will not waver,” he said. “I mean it. Our commitment to Ukraine will not weaken. We will stand for freedom and liberty today, tomorrow and for as long as it takes.”

German chemicals maker BASF cut its full-year outlook on Wednesday, forecasting a slowdown in global consumer demand that is expected to weaken sales and earnings more than previously expected.

The world’s largest chemical producer now expects sales of between €73bn and €76bn, down from the previously estimated range of €84bn-€87bn. Adjusted earnings are estimated at €4-4.4 billion compared to previous estimates of €4.8-5.4 billion.

BASF said preliminary second-quarter sales were a quarter lower than a year earlier. Adjusted earnings fell 57 percent from the previous year.