Chinese inflation stable in October despite risk of acceleration

Swissquote Bank Research Team Swissquote Bank Ltd

USD/CNY is trading at 6.9475, bouncing back due to resurgent optimism that the China-US trade war might be resolved in late November and on stable Chinese inflation rates. October inflation came in 2.50% (prior: 2.50%): the outlook of a weaker Renminbi will necessarily cause imports to be costlier, which will ultimately accelerate inflation starting in 2019. Hopes are high that US President Donald Trump and Chinese President Xi Jinping can be meet during the G20 meeting in Argentina over 30 November-1 December 2018. Meanwhile, Chinese equities have had a tough week. Following the announcement of lower economic growth in Q3, 6.50% - the lowest since 2009 – the Chinese market has been losing ground. Asian shares are having their sixth slide in seven weeks, thus erasing last week gains.

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Swissquote Bank Research Team

Swissquote Bank Ltd

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