Morning Bid: Inflation, tariffs dominate market landscape

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Morning Bid: Inflation, tariffs dominate market landscape

Inflation data from the world's three largest economies - China, the United States and euro zone - sets the tone for world markets this week, and Asia gets the ball rolling on Monday following the April figures out of Beijing at the weekend.

But much of that may be offset by the news that the Biden administration will announce new China tariffs on strategic sectors, including a major hike in levies on electric vehicles. Figures on Saturday showed that consumer price inflation in China last month was a bit stronger than expected, but producer deflation deepened, an indication that pipeline price pressures remain firmly to the downside.

Before that, investors in Asia have Indian inflation on their plates too. Economists polled by Reuters expect a slight cooling to 4.8% from 4.9% in March, which would be the lowest since June last year.

 

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