June 7, 2023
United States:
US Trade Deficit Widens to Largest in Six Months on More Imports
The US trade deficit widened in April to the largest in six months as imports picked up and exports declined.
The shortfall in goods and services trade grew by $14 billion, or 23% from a month earlier, to $74.6 billion, Commerce Department data showed Wednesday. The figures aren’t adjusted for inflation. The median estimate in a Bloomberg survey of economists called for a widening to $75.8 billion.
Europe:
ECB Officials Urge Higher Rates Even as Inflation Retreats
European Central Bank officials called for interest rates to be lifted further — seeking additional reassurance on the inflation front as they look past more signs of weakness in the euro-zone economy.
Dutch central bank chief Klaas Knot said he’s “not yet convinced that the current tightening is sufficient,” telling lawmakers Wednesday in the Netherlands that “inflation could well remain too high for a long time and further rate hikes will then be necessary.”
Asia:
China Traders Are Leveraging Up The Most on Record on Flush Cash
A gauge of leveraged activity in China’s money market has notched another record as onshore financial institutions take advantage of ample liquidity to boost borrowing.
Turnover of so-called overnight pledged repo trades surged to an all-time high 7.9 trillion yuan ($1.1 billion) on Tuesday, according to data from the China Foreign Exchange Trade System. An increase in volume may be indicative of banks using cheap funding costs to buy bonds, even if the transactions also include the day-to-day financing needs of firms in the market.
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