6 Stocks to Capitalize on China Trade Worries
Yesterday the market was taken by surprise when China announced a trade deficit of $7.3B in comparison with analyst expectations of a $4.95B surplus.
This was the first time since March 2010 that China had a trade deficit. In March 2010 the deficit was of $7.24B. Both in the 2010 deficit and in the recently announced trade data, the numbers were skewed due to the Chinese Lunar New Year. Last year, the Lunar holiday was later on in February (14), which affected March trade data; this year it fell on February 3, affecting February data.
The holiday usually lasts around 15 days, which typically leads to a slump in exports since the country's factories shut down or run at half speed for the whole holiday period.
Some analysts expect that this deficit is temporary and that China's trade data will return to the norm with a surplus next month. A
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