Consumer prices in the People’s Republic negative in July: it hasn’t happened since February 2021
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Consumer prices in China dropped by 0.3% on an annual basis in July, signaling the first drop since February 2021 and the deflation phase in the wake of the slowdown in domestic consumption which complicates the economic recovery. The figure, the main indicator of inflation, was zero in June and compares with expectations of -0.4%. According to data from the National Statistics Office, producer prices are also bad: -4.4% per year, worse than the estimates of -4.1% and better than -5.4% in June. The slowdown in July is the tenth in a row to signal deflation amid weak demand and slowing commodity prices.
The Tokyo Stock Exchange starts trading lower, following the contraction of Wall Street, weighed down by the sales on the banking sector and the less encouraging data on trade in China. The reference index Nikkei dropped 0.31%, to 32,276.17, marking a loss of more than 100 points. On the foreign exchange market, the depreciation of the yen against the dollar continues, to 143.20, and slightly above, to 157 against the euro. The Hong Kong Stock Exchange opens the session in negative territory: the Hang Seng index drops 0.65%, to 19,059.58 points. A negative start also for the Chinese Stock Exchanges: the Shanghai Composite index dropped 0.29%, to 3,251.15 points, while that of Shenzhen lost 0.27%, to 2,045.48.
As for Europe, the spotlight is once again on Milan, due to the tax on bank extra profits introduced by the Meloni government. On Tuesday 8 August the Ftse Mib which marked the worst performance in the Old Continent and returned below the threshold of 28 thousand points. Bank securities burned around 9.5 billion in capitalization in a single session while, according to Radiocor’s calculations, in the first six months of 2023 the tax should weigh on the top six Italian banks by around 2.5 billion.
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2023-08-09 06:56:15
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