Kicking off the week, here's a chart of the weekly global trade indicators. This chart shows the z-score for the Baltic Dry Index (bulk commodity shipping costs), the China Containerized Freight Index (Chinese general export costs), and the relative performance of the equities in the Dow Jones Global Shipping Index. The key point is the weekly global trade indicators saw a broad weakening earlier this year, but have begun to rebound in recent weeks. This is an encouraging sign, because there have been some doubts on the robustness of the global trade boom, particularly as the USA trades tariffs with China and Europe, and NAFTA negotiations drag on. Aside from the political risks, global trade also reflects the health of the broader global economy, and has been a key indicator to watch in getting the right global macro inputs for both global bonds and global equities.
