Poor Chinese trade sees markets fall

Global shares lost momentum yesterday, falling for the first time in five days after weak Chinese trade data, though declines were limited by expectations policymakers could act to shore up the world’s economies.

The markets’ recent rally has been underpinned by comments by ECB President Mario Draghi two weeks ago that the central bank was “ready to do whatever it takes to preserve the euro”, raising hopes of heavy bond buying to aid Spain and Italy.

A lower-than-expected reading in China’s July exports yesterday, however, soured the mood. In addition, new bank loans in China were at a 10-month low, suggesting pro-growth policies have been slow to gain traction and that more urgent action may be needed.