China continued its economic recovery from the COVID-19 lockdown imposed earlier in the year, but the incessantly rising number of COVID-19 cases globally saw a smaller-than-forecast growth in imports.

Data for October released on Sunday showed that exports rose 11.45 year-on-year, exceeding the 9.3% growth in forecasts prepared by Investing.com and September’s 9.9% reading. The trade balance rose to $58.44 billion, smashing both September’s $37 billion and the forecast $46 billion.

Although imports rose 4.9% year-on-year, down from the predicted growth of 9.5% and September's 13.2% reading, “a second straight monthly expansion suggests a continuous rebound in domestic demand,” according to Bloomberg Economics.

With Europe and the U.S. fighting a second wave of COVID-19 cases, exports benefitted from increased demand from a global rush to secure medical equipment and work-from-home technology as countries such as France, Germany and the U.K. re-enter lockdowns.

However, with the global number of cases now exceeding 50 million as of Nov. 9, with almost 10 million cases in the U.S., according to Johns Hopkins University, the fight against COVID-19 continues, dampening global demand. Domestically, a case was detected in the city of Tianjin on Sunday.

With Sunday’s confirmation of Democrat Joe Biden’s victory in the U.S. presidential elections, investors widely expect a less confrontational approach to U.S.-China relations from the new administration. Incumbent president Donald Trump has so far refused to concede and continues to pursue legal action.

Inflation and credit reports, including the Consumer Price Index, due to be released tomorrow are also widely expected to indicate stable underlying demand. Investors also await the results of the Singles Day shopping event, involving e-commerce giants such as Alibaba (NYSE:BABA), on Nov. 11.

Reference by: Investing.com