Sumary of GLOBAL MARKETS-China data casts pall over global recovery, UK prices spike:
- Lower inflation suggests the Fed will be under less pressure to begin trimming its vast asset purchases, and, as a result, the yield on the benchmark 10-year note fell as low as 1.263%, its lowest since Aug.
- While the base case is for inflation to moderate over a two-three year horizon, we are not betting on sharp falls in inflation,” said Valentijn van Nieuwenhuijzen, chief investment officer at Dutch asset manager NN IP.
- “This is not a dip, it is a falling trend that will last at least until the end of this year,” said Iris Pang, chief China economist at ING said of the Chinese data.
- Pang said she anticipated a 0.5 percentage point cut in Chinese banks’ reserve requirement ratio (RRR) in October, and said more fiscal support was needed for small- and medium-sized companies.