SHANGHAI, Jul 9 (SMM) -- According to the NBS, the growth of China's CCI fell to 2.2%, the lowest in 28 months, and PPI fell by 2.1%.
According to the data released by the NBS last month, China's CCI in May was up 3% YoY, lower than the 3.2% expected, and a record low since June 2010. Inflation problems are not the most emergent that China needs to cope with now as goods prices have been falling recent months. China needs to take measures to stabilize economic growth. China's central bank unexpectedly announced it would lower interest rates July 5th, meaning the bank is not optimistic towards economic outlook. China's economy is experiencing recession, which will last for some time. Macroeconomy is expected pessimistic in 3Q, and will maintain downward track. China's central bank will likely further lower deposit reserve ratio in order to stimulate economic growth.
The number of US non-farm employment increased by 80,000 in June, compared to the 90,000 expected. The increases expected in May after revised were 79,000, with the preliminary increases expected 69,000; the revised increases expected in April were 68, 000, with the initial of 77,000. US employment rate in June was 8.2%, unchanged from May and in line with expectations. The number of US non-farm employment in June only increased slightly, a signal that US economic growth slowed.
Risk appetite decreased due to worse-than-expected US non-farm employment, causing capital to flow to the US dollar for safe-haven, pushing down base metals prices. Investors are selling goods at higher prices. Shanghai metals prices should continue to fall in the foreseeable future.