The Day at a Glance | September 7 2021

The Top

*China`s exports increased more than expected (25.6% vs 17.1%e. Aug.) in light of strong demand in the United States and Europe.

*Growth in the Eurozone was revised upwards during the 2Q21 (2.2% q/q vs 2% prev.), boosted by increased consumption (3.7%).

*Mexico`s government will seek to refinance PEMEX`s debt after receiving 12 billion in Special Drawing Rights from the International Monetary Fund.

Economic environment

China`s exports increased more than expected. Foreign trade figures in China confirmed a 25.6% rate of growth in exports during August – more than the estimated 17.1%. The surprising acceleration in exports suggests that several companies in advanced economies could be carrying out purchases ahead of time in order to restore inventories before the Christmas season since it implies larger demand for consumer goods such as electronics, tech products, clothing and accessories, and other leisure goods. It`s possible that COVID19 outbreaks and disruptions in other countries of the region have caused the greater part of orders to go towards China and not its competitors. Meanwhile, the recent shutdown of terminals in the Ningbo port doesn’t seem to have strongly affected the sector during the month and exports could turn into a driver for growth in the short term – in a time when the rest of the economy is slowing down. It`s possible that the strength in exports could be maintained through November if businesses keep carrying out purchases ahead of time due to the holidays, but figures are expected to be more moderate for the 4Q21.