China nears deflation as miners warn of ‘bumpy’ recovery

News Snapshot:

“Worsened PPI deflation and drop in [consumer price index] inflation point to weak domestic demand,” Barclays warned in a research note on Monday. “We think the more challenging deflation environment and sharp slowdown in growth momentum support our view that the [People’s Bank of China] has entered a rate-cutting cycle.” Economists said the data heightened expectations of more aggressive steps to stimulate growth by Beijing which have so far been absent after the country’s emergence from its ‘zero COVID’ isolation. The data left local bond traders caught in the middle of two competing forces: robust jobs market in the United...