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Markets Live, Tuesday 14 July, 2020 – The Sydney Morning Herald

The Australian sharemarket started in the red and pretty well stayed there all of Tuesday’s trade, closing down 0.6% at 5941.1

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“The reopening of major western economies and elevated overseas demand for PPEs (personal protective equipment) and masks supported Chinese exports in June,” said Boyang Xue, a China analyst at Ducker Frontier.
“In addition, production disruptions in China’s trade competitors also helped to shift some orders to Chinese exporters.”
China’s economy is gradually emerging from a sharp 6.8 per cent contraction in the first quarter, but the recovery remains fragile as global demand falters from social curbs and still rising coronavirus cases. Chinese consumption is also subdued amid job losses and concerns about a resurgence in infections.
The country’s export performance, however, has not been as severely affected by the global slowdown as some analysts had feared, though weak overseas orders may weigh on its manufacturers in the coming quarters.
External risks such as worsening US-China relations, shrinking global demand and disruptions in supply chains are likely to pressure China’s trade outlook in the long term, Institute of Advanced Research at Shanghai University of Finance and Economics said in a report on Saturday.
“In the second half, export and import growth are highly likely to extend declines seen in the first half.”

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