SMM Weekly Macro Analysis

SHANGHAI, Apr 17 (SMM) - On the macro front, the US CPI rose by 5% year-on-year in March, which was lower than the expected 5.2% and the lowest growth since May 2021. The US PPI rose 2.7% YoY in March, a sharp drop from the previous reading of 4.6% and also below the expected 3%. Newly added non-farm payrolls in the United States fell short of expectations in March. The inversion of 10-year and 3-month US Treasury yields deepened further and exceeded 160 basis points, which renewed fears of economic recession. The market expected the Fed to raise interest rate further in May and bet that this would be the last hike in the Fed's tightening cycle. In China, CPI slipped 0.3% MoM in March, and rose just 0.7% YoY. PPI was flat MoM in March, and dropped 2.5% YoY. Both data triggered concerns of deflation.