China recently published its report in trade activity which came in less than expectations creating uncertainty in the markets. Investors were now looking at slower global demand in reaction to lower Chinese trade data. Exports by China increased by 4.9 percent in the Month of April which imports showed the gain of only 0.3 percent according to the China’s General Administration of Customs.

Analysts were expecting the increase of 11 percent in Chinese imports while exports were expected to gain by 8.5 percent. China’s trade surplus figure stood at $18.4 billion in April as compared to trade surplus of $5.4 billion in March. Analysts were expecting the figure of $10.4 billion.

Usually increased trade surplus is a good sign but in case of China imports were decreased which indicated sluggish demand goods in China. Analysts think that the Chinese trade data is a wake-up call of policy makers to take measures to stimulate domestic demand. In other words, further monetary easing is suggested by most economists.