Hong Kong’s HK 50 index rose and the Chinese yuan edged up as traders assess the outcome of the first virtual meeting between US President Joe Biden and Chinese leader Xi Jinping.
China’s producer inflation speeds down in October
In October, China's factory-gate inflation decelerated for the fourth month due to cooling domestic demand as well as manufacturing activity, thus indicating that the country’s government would probably come up with more growth-boosting measures against the backdrop of trade frictions with America.
Meanwhile, in October, consumer prices rallied at the same tempo pace from September, with food prices steady, as National Bureau of Statistics revealed.
A gauge of the prices companies receive for their services and products, the producer price index managed to ascend by 3.3% in October from 2017, diving from September’s reading of 3.6%.
Market analysts had generally expected the October producer price inflation rate to go down to 3.3%. The PPI rallied by 0.4% on a month-to-month basis.
Soaring import prices will probably apply some pressure to producer prices, although it’s not enough to prevent PPI inflation from diving, as some market experts pointed out.
In China, economic momentum has been receding for the last months. The previous week the country’s leader Xi Jinping told that the world's number two economy is experiencing strengthening downward pressure.
For the last time, underlying factory-gate inflation has been affected by receding consumption, with China's fixed-asset investment surge hovering around record minimums and also industrial profit surge decelerating for the fifth month in a row in October.
The Chinese government’s crackdown on financial risks has somewhat speeded down credit demand, while a lot of mid-sized businesses have struggled to pass on higher prices to their clients.
Official and private factory polls have demonstrated a serious months-long downturn on export orders, hinting that China’s escalating trade clash with America is starting to affect Chinese businesses.
As a matter of fact, raw material prices headed north by about 6.7% last month from 2017, declining from a 7.3% profit in September.
The last week was so eventful for traders: FOMC Meeting, Bank of England’s rate decision, the OPEC+ meeting, and also NFP. This week is going to be interesting as well! Let’s see what you should focus on.
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
The Eurozone will publish the Indicator of GfK Consumer Confidence on November 25, at 09:00 GMT+2.
The United States will publish the Federal Open Market Committee Meeting Minutes on November 24, at 21:00 GMT+2.
The United States will publish Flash Manufacturing and Services PMIs on Tuesday at 16:45 GMT+2.