China is on track to surpass the $1 trillion annual trade surplus for the first time, after exports rose 36.3% in September from a year earlier. Imports also rose significantly, up 31%, according to Chinese customs data.
The country's trade surplus in September reached $133.5 billion, up from $119.1 billion in August. For the January-September period, it stood at $938.1 billion, putting China on track to surpass the record $1.2 trillion. dollars by 2025.
Technology and cars drive exports
The growth is supported by strong demand for semiconductors, green technologies and cars. In the first nine months, Chinese semiconductor exports rose 108.1% year on year. Overseas sales of automatic data processing equipment and parts increased 54.6%, and auto exports increased 54.3%.
According to the Associated Press, strong exports are offsetting weakness in domestic consumption and investment, which have been hit by a prolonged downturn in the real estate market. The results, however, increase pressure on Beijing from the United States and the European Union to curb trade imbalances.
“While trade tensions between the United States and China have eased somewhat, the EU's push to balance trade is aimed squarely at high-value exports,“ said Ekaterina Bigos, senior market strategist at BNP Paribas Asset Management, quoted by the Associated Press.
U.S. inflation has strengthened expectations for higher interest rates
The attention of financial markets during the day was also focused on new data on consumer prices in the United States. Inflation reached 3.7% in September compared to the same month in 2025, after 3.4% in August. On a monthly basis, prices increased by 0.6%.
The core index, which excludes food and energy, rose by 2.6% on an annual basis and by 0.3% compared to August. Both indicators were above economists' expectations.
“The data is worse than expected - not only because of energy, but also because of other components. Investors are starting to come to terms with inflation that will remain higher for a longer period“, commented Mark Hackett, chief market strategist at Nationwide, quoted by Reuters.
After the publication of the data, markets increased their assessment of the probability that the Federal Reserve will raise the main interest rate as early as October to about 41% compared to about 20% before the inflation announcement.
The US dollar appreciated, and the yield on two-year government bonds rose. The S&P 500 fell 1.33%, the Nasdaq Composite lost 2.14% and the Dow Jones Industrial Average fell 0.37%. Brent crude settled at $106.06 a barrel amid tensions over Middle East shipping lanes.
Sources: reuters.com, investing.com, apnews.com