MNI China Daily Summary: Thursday, March 13

MNI BRIEF: China Has Been In Communication With U.S. On Trade

MNI BRIEF: China To Enhance Customs Clearance

MNI BRIEF: China Consumer Satisfaction Up

MNI: PBOC Net Drains CNY68.6 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1728 Thurs; -0.64% Y/Y

US EIA:NAT GAS STORAGE -62 BCF TO 1,698 BCF MAR 07 WK

MNI: US FEB FINAL DEMAND PPI +0.0%, EX FOOD, ENERGY -0.1%

MNI: US JOBLESS CLAIMS -2K TO 220K IN MAR 08 WK

GERMANY: Union/SPD Migration Alignment After Turmoil Threatened Debt Deal (BILD)

GERMANY: Official Interim Election Results Tilt Towards Missing BSW & FDP

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CHILE: Core CPI Inflation Pressures Ease In February, BCCh Seen Staying On Hold

CHILE
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  • The Chilean peso is trading in a tight range after the in-line Feb CPI data earlier, keeping gains against the greenback this week to around 3.5%, aided by the rally in copper prices. The BCCh’s preferred core inflation measure, core ex-volatiles, declined to 3.9% y/y in Feb, from 4.2%, bringing it back inside the 2-4% target range. Core services inflation declined to 4.5% y/y, while core goods inflation ticked down to 3.0% y/y.
  • Goldman Sachs notes that excluding electricity prices, which have increased close to 60% since June, inflation is tracking at 3.5%, down from 3.7% in January. They say that some price pressures, such as fuel prices, could ease ahead, driven by a stronger FX rate and lower energy commodity prices. They expect sequential inflation to remain somewhat firm in March due to seasonal indexation, but anticipate a fast decline of annual inflation readings in H2.
  • Meanwhile, JP Morgan expects the BCCh to maintain a stable policy rate ahead, despite the firmer activity performance observed late 2024 and early ‘25. They still see very moderate easing for the second half of the year, a call that relates to expectations on the global economy and thus external demand.
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  • The Chilean peso is trading in a tight range after the in-line Feb CPI data earlier, keeping gains against the greenback this week to around 3.5%, aided by the rally in copper prices. The BCCh’s preferred core inflation measure, core ex-volatiles, declined to 3.9% y/y in Feb, from 4.2%, bringing it back inside the 2-4% target range. Core services inflation declined to 4.5% y/y, while core goods inflation ticked down to 3.0% y/y.
  • Goldman Sachs notes that excluding electricity prices, which have increased close to 60% since June, inflation is tracking at 3.5%, down from 3.7% in January. They say that some price pressures, such as fuel prices, could ease ahead, driven by a stronger FX rate and lower energy commodity prices. They expect sequential inflation to remain somewhat firm in March due to seasonal indexation, but anticipate a fast decline of annual inflation readings in H2.
  • Meanwhile, JP Morgan expects the BCCh to maintain a stable policy rate ahead, despite the firmer activity performance observed late 2024 and early ‘25. They still see very moderate easing for the second half of the year, a call that relates to expectations on the global economy and thus external demand.