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China's April exports & imports fall cooling recovery hopes

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By Euronews  with Reuters
China's April exports & imports fall cooling recovery hopes

<p>China’s trade data for April has quashed investors’ hopes re the recovery there, with both exports and imports falling more than expected.</p> <p>The world’s second-largest economy is suffering from <a href="http://www.euronews.com/2016/04/15/debt-drags-chinese-economy-on/">weak demand at home and abroad</a>.</p> <p>Exports fell 1.8 percent compared with April last year, while imports slumped 10.9 percent – down for the 18th consecutive month. </p> <p>Chinese exports to its top market, the United States, fell 9.3 percent last month, while shipments to the European Union, the second biggest market, rose 3.2 percent. </p> <blockquote class="twitter-tweet" data-lang="en-gb"><p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/China?src=hash">#China</a> exports a soft -1.8% y/y — direction of <span class="caps">CNY</span> <span class="caps">TWI</span> points to future improvement though… <a href="https://t.co/xGbvIB4vOm">pic.twitter.com/xGbvIB4vOm</a></p>— Callum Thomas (@Callum_Thomas) <a href="https://twitter.com/Callum_Thomas/status/729461150740439040">9 May 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p><strong>L-shaped trend</strong></p> <p>Recovery hopes were further dimmed by an article on Monday in the People’s Daily, the Communist Party’s mouthpiece. It cited an “authoritative source” saying China’s economic trend will be “L-shaped”, rather than “U-shaped”, and definitely not “V-shaped”, but the government <a href="http://www.euronews.com/2016/03/01/millions-more-chinese-zombie-company-workers-face-the-sack/">will not use excessive investment or rapid credit expansion to stimulate growth</a>.</p> <blockquote class="twitter-tweet" data-lang="en-gb"><p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/China?src=hash">#China</a> economy to follow “L-shaped” trajectory in foreseeable future: 'authoritative figure' <a href="https://t.co/8d46o8aT3c">https://t.co/8d46o8aT3c</a> <a href="https://t.co/5X6uxBfLaP">pic.twitter.com/5X6uxBfLaP</a></p>— People's Daily,China (@PDChina) <a href="https://twitter.com/PDChina/status/729609479906451457">9 May 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p>Chinese share indexes fell sharply again on Monday, reaching eight-month lows.</p> <p>Following the market’s nearly 3 percent slump on Friday, China’s blue-chip CSI300 index fell 2.1 percent, to 3,065.62, while the Shanghai Composite Index lost 2.8 percent</p> <p>An index tracking raw material shares tumbled nearly 5 percent as China’s commodity prices continued to fall amid a government crackdown on speculative trading.</p> <blockquote class="twitter-tweet" data-lang="en-gb"><p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/China?src=hash">#China</a> stocks plunge again as hopes for economic recovery fade <a href="https://t.co/EQGjAP72hq">https://t.co/EQGjAP72hq</a></p>— Frances Townsend (@FranTownsend) <a href="https://twitter.com/FranTownsend/status/729634050961367042">9 May 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>