China's September exports fell 10 percent from a year earlier, far worse than expected, while imports unexpectedly shrank after picking up in August, suggesting signs of steadying in the world's second-largest economy may be short-lived. David Pollard reports.
China's exports were down a tenth in September from where they were a year ago. The latest data worse than forecast - as was its trade surplus. But there were also negative numbers on its import performance - they're down 1.9 per cent on the year. Economists had expected a rise. (SOUNDBITE) (English) CHIEF INVESTMENT OFFICER, CCLA INVESTMENT MANAGEMENT, JAMES BEVAN, SAYING: "The fact that China's economy is clearly slowing, held back by bubbles in property and other local credit challenges does mean that the key driver for growth next year is going to be much less than had been hoped." It could be bad timing too. Brexit and banking worries in Europe - and a bitter presidential election race in the US - already weighing on the outlook. But prompting one hope in the markets: the Fed might stay its hand in December. (SOUNDBITE) (English) CHIEF INVESTMENT OFFICER, CCLA INVESTMENT MANAGEMENT, JAMES BEVAN, SAYING: "There is certainly the possibility that the Fed does not hike rates this year, and I do believe that even it does, we should not expect more than one hike in 2017, such is the profile of low growth and low inflation that looks set to continue." Other central banks may also pause to ponder - China's currency hitting a fresh six-year low after the data. That adding to fears of global deflation - and making the jobs of the ECB and Bank of Japan even harder still.