The much anticipated trade statistics from China for May failed to arouse markets that have grown accustomed to the slowing growth of the world’s second-largest economy, but it did inspire fresh speculation about policy stimulus measures from Beijing.

For the record, imports remained stuck in negative territory while exports reported a bigger-than-expected dip of 7.5% year-on-year, bringing the trade surplus to a 13-month low.

Despite the data’s limited immediate impact, the Chinese yuan dropped as expected, and Europe may perceive the numbers negatively on a day with few domestic drivers.

Following recent sticky inflation statistics, there is speculation that the Bank of Canada may defy poll expectations and resume rate hikes later on Wednesday. This follows the Reserve Bank of Australia’s unexpected rate hike and hawkish language on Tuesday.

After the central bank surprised analysts who thought there would be a rate halt for a second consecutive month, RBA Governor Philip Lowe was still outlining Tuesday’s policy decision in a speech to bankers.

The Australian dollar was protected from the disappointing Chinese trade figures and Australia’s own below-forecast first-quarter gross domestic product data by expectations of a follow-up boost in July.

Following a somewhat higher close on Wall Street, both Asian stock markets and U.S. equities futures were mixed. As the earnings season comes to an end, light positioning may very well last through the important central bank meetings scheduled for next week.

One area of the market that is experiencing volatility is bitcoin. Following an expanding U.S. crackdown on exchanges and lesser coins, bitcoin rebounded much of Tuesday’s steep dip on a flight to quality in the crypto space.

(Adapted from Reuters.com)

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