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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- China inflation data will come out during the overnight session (1.30am London time), with market expecting inflationary pressures to continue to ease.
- PPI inflation is expected to decelerate to 11.3% YoY in December, down from 12.9% the previous month (and down from a 26-year high of 13.5% reached in October 2021).
- We previously saw that the sharp contraction in Chinese 'liquidity' (TSF 12M Sum) has been pricing in a deceleration in inflation in the coming 9 to 12 months.
- The chart below shows that annual change in Total Social Financing 12M sum has strongly led PPI inflation (by 9 months) in the past 15 years.
- Interestingly, inflation has been decelerating in numerous Asian/ SE Asian countries in recent months (i.e. India, Bangladesh, Vietnam, Philippines).
- A decrease in inflationary pressures leaves more room for policy easing, which could support domestic risky assets such as equities that are currently trading at 'distressed' levels.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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