China’s net trade disappointed, now markets eye on inflation figure

China's trade balance figure once again disappointed. The net exports of the economy reduced to $54.10 billion in November from 61.64 billion in last month. 

Exports of the economy are declined by 6.8% against previous year. The exports figures declined due to sluggish external demand. A sharp fall in export to some Emerging Markets countries is noticed, like Brazil and Russia. China's exports to Brazil dropped by 41% and to Russia dropped by 33% in October.

Similarly, imports of the economy contracted by 8.7% during the same period. The volume of imports is almost same but the numbers are less due to lower import prices.

After disappointed trade balance, markets will focus on China's inflation data for November due tomorrow.

"CPI inflation is expected at 1.4% and PPI inflation at -6%; this would be in negative territory for almost four years", says Nordea Bank in a research note.