The Day at a Glance | September 7 2020

The Top

· Chinese exports record their greatest expansion since 2019.

· India surpasses Brazil and is now the second most affected country by COVID-19.

· Economic indicators: Sentix investor confidence in Europe (-8 vs -10.5 e.).

Economic environment

Chinese exports recorded their third consecutive month of expansion in August as global demand recovers. Exports grew 9.5% annually, their greatest expansion since March of 2019 and way above estimates (7.1). Medical supplies and electronics led the expansion and growth has become more robust as the global economy continues to reopen. However, imports fell (-) 2.1% (vs 0.1% e.) and continue to show that domestic demand is very weak. It`s expected to recover in the following months as stimulus has been carried out in the form of credit expansion and investment in infrastructure. At the moment, the trade balance shows a $58.93 billion dollar surplus; and logs the largest surplus with the United States since November of 2018 ($38.2 billion). China`s outlook for recovery still faces risks, especially in regards to a new wave of the virus that would once again reduce global demand; in addition to a possible deterioration concerning its relationship with the US during its presidential campaigns.