The market is taking a breather after a bullish week buoyed by hopes of an end to the monetary tightening cycle in the USA. The FTSE 100 was down 0.2% at 9am today.

In China, the latest statistics are rather weak and somewhat divergent. Nothing surprising, some might say. October exports were down -6.4% year-on-year (-3.3% expected), but imports rebounded by +3% (consensus -4.8%). The basic interpretation is that China is still struggling to remain the preferred trading partner of other countries, at least outside oligopolistic areas, while its domestic market is regaining some color. No reason to get carried away. The other big news of the night was the Bank of Australia's decision to raise its main policy rate from 4.10% to 4.35%. The announcement was in line with expectations, but was accompanied by a slightly less offensive stance than expected on the risks ahead. As a result, the Australian dollar and local yields tended to ease.

Shares in Associated British Foods have climbed 6.7% after it posted strong full-year results and announced a £500 million buyback programme.

Direct Line Insurance jumped 3.8%, also after posting good third quarter earnings.

Things to read today:

The global constraints to Chinese growth (Financial Times)

Taylor Swift may hand out bigger bonuses than many banks this year (FT Alphaville)

Warren Buffett Isn’t Buying Bonds Even as Rates Surge (Barron's)