Markets are much calmer today amid a slightly stronger yuan fix from PBOC and better Chinese exports in July
Risk assets may find some reprieve so far today over the above events with Chinese trade data which again shows that exports are holding pace despite the global slowdown and ongoing trade tensions with the US.
While there are positive takeaways for risk, the question is how long can things last this way? Especially when the prospects remain more blurred and uncertain.
The above trade data continues to mark weak and dampened domestic demand as imports are still struggling. China's trade surplus to the United States is also increasing, raising further concerns about the trade dispute between the two countries.
general trading conditions in larger picture.
It is not good for international markets that we should see some appearance of a kind of currency war between countries around the world.
Against this background, I do not see how it is positive for risk in the bigger picture, and it will certainly come back to bite on the risk weights sooner rather than later.