There has not been much of a reaction in FX...>

CHINA: There has not been much of a reaction in FX and equity markets to China's

solid trade figures, which beat expectations across the board as both imports

and exports returned to growth, the trade balance beat expectations, and the

trade surplus with the US narrowed. 

- The big mover though has been the bond market with 10 year futures edging down

14 ticks following the release to test its 21dma.

- The rebound in trade confirms what we saw in the Jan PMI figures which was an

improvement in the export outlook amid a thawing of trade tensions. The failure

of the trade beat to ignite any meaningful risk on reaction as of yet may

reflect that ongoing trade talks are much more of an important driver at

present. Alternatively, strong trade figures may be denting expectations for

further monetary easing.