Overall Trade Deficit Slims, But Gap with China Balloons

| About: CurrencyShares Euro (FXE)

Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

Trade Deficit Narrowed in September [Wall Street Journal]

Summary: The U.S. trade deficit shrank 6.8% to $64.3 billion in September, but the widening trade gap with China cast a pall on the good news. The fall-off in oil prices eased the U.S. import figure and exports continued to be strong, but the deficit with China hit a record $22.96 billion in September, up $1 billion in only a month. The gap with China, combined with the fact that the overall deficit -- though shrinking -- is still among the largest in history, could prompt the newly Democratic Congress to get tough on trade policy. The Democrats advocate legislation that protects workers' rights and the environment in trade talks with other countries, an approach that would contrast sharply with what Michigan Rep. Sander Levin [D] calls the "hands off, anything goes" approach of the Bush administration.
Related links: Press Release. Commentary: U.S. Trade Deficit: Not as Ominous as it SoundsIt's Still The Economy, StupidChina's Trade Surplus Keeps Growing and GrowingDollar Rangebound as Trade Deficit Higher Than Expected
Potentially impacted stocks and ETFs: Euro Currency Trust ETF (NYSEARCA:FXE)

Seeking Alpha's Wall Street Breakfast summarizes today's key market- and stock-moving news. Receive it by email every weekday morning (free/no spam).

Seeking Alpha is not affiliated with Wall Street Journal.

About this article:

Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here