China Inflation Data Misses Target as U.S. Tariffs Stoke Market Unease
Expert Views on China’s Inflation Trends
Economists noted ongoing deflationary pressures and warned that the US-China trade war would likely exacerbate the situation.
Higher US tariffs could reduce demand for Chinese goods, fueling deflationary pressures. The US-China trade war could also affect consumer confidence and China’s labor market conditions, potentially dampening domestic consumption.
The Market Reaction to China’s Inflation Report
Financial markets reacted swiftly to the March data, which underscored fragility in the demand environment.
Before the inflation data, the Hang Seng Index rallied 2.69% to 20,810 as markets reacted to President Trump’s tariff announcements. However, in response to the March inflation report, the Index briefly rose to a high of 20,910 before falling to a low of 20,739.
On Thursday, April 10, the Index was up 2.61% to 20,794 for the morning session. While weak inflation data pressured sentiment, tariff relief limited the downside in early trade.
This article was originally published by a www.fxempire.com
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