







SHANGHAI, Jan. 11 (SMM) – China’s NBS shows December CPI rose 1.6% YoY, with the growth up 0.1 percentage point, while PPI fell 5.9% YoY. Major economic indicators slated for release today include China’s and overseas trade numbers, power consumption and financial credit figures. China’s imports are expected to fall in December due to yuan’s devaluation.
US non-farm employment data released last Friday were upbeat, but failed to boost the US dollar index to 99. Strong labor market in the US triggered market expectations that the Fed will raise interest rate further in March. Employment in the mineral sector especially energy industry has been decreasing, despite a noticeable growth in service sector. This means import deflation will continue.
Concerns that the PBOC will continue to intervene in the exchange market still exist. Cargo holders holding prices firm should be cautious due to soft demand and the nearing of the Chinese New Year holiday three weeks later.
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