Just as we warned, the EM exuberance has faded and China's torrid trade growth has suddenly slowed dramatically. Offshore Yuan is spiking after both China Imports and Exports dramatically missed expectations.

China customs administration announces data in yuan terms in statement:

• July exports climbed 11.2% y/y; median est. 14.8% rise y/y (range +12.1% to +16.5%, 10 economists).
• July imports climbed 14.7% y/y; median est. 22.6% rise (range +16.0% to +26.9%, 10 economists)
• July trade surplus 321.2b yuan; median est. 293.6b yuan surplus (range 250b-348.3b yuan surplus, 10 economists)

Export growth is now the slowest since February (lower than the lowest estimate) and Import growth is now the weakest since Dec 2016 (lower than the lowest estimate)...

The most obvious reaction in markets was a jump in Bitcoin and spike in Offshore Yuan...

Of course, as Bloomberg reports, the world’s largest exporter is confronting more uncertainty, as U.S. President Trump continues sporadic tough talk on China. The White House may be considering an investigation into alleged intellectual property violations, which could risk igniting broader trade conflict. Citic Securities Co. said in a research report that rising U.S. protectionism coupled with anti-globalization sentiment in Europe will take its toll on China’s exports.