Consumer prices are accelerating in China and Germany

Consumer prices are accelerating in China and Germany

Consumer prices are accelerating in China and Germany and oil starts the Asian session higher

China’s consumer price growth accelerated to a five-month high in April
as a result of supply chain problems caused by coronavirus restrictions

Evest follows market developments in the following report

topic

China’s CPI accelerates to a 5-month high

CPI in Germany rise by 7.8% year-on-year

Oil rises in the Asian session

US stocks performance is mixed

 

 

 

 

China’s CPI accelerates to a 5-month high

The consumer prices index (CPI) rose by 2.1% year-on-year in April
according to the Government Statistics Office (GSO) of the People’s Republic of China

In March, it rose by 1.5%

Analysts expected growth to rise by an average of 1.8%, according to Trading Economics
Experts surveyed by Wall Street Journal predicted a rise of 2%

Food prices rose 1.9% year on year, marking the first rise in the past five months
In the non-food sector, prices rose by 2.2%, including transport and telecommunications services by 6.5%
clothing – by 0.5%, household goods and services – by 1.2%, and medical services – by 0.7%

Consumer prices rose by 0.4% in April compared to the previous month, while they were stable in March
Experts expected an average rise of 0.2%, according to Trading Economics

From January to April, the CPI rose by 1.4% compared to the same period in 2021

The producer price index (PPI) in China rose by 8% in April after rising 8.3% in March
This is last year’s lowest growth rate

However, experts predicted a more significant slowdown in growth rates – up to 7.7-7.8%

The PPI rose by 0.6% in April compared to the previous month
In March, this figure increased
by 1.1%

From January to April, the Producer price index (PPI) rose by 8.5% compared to the same period last year

artical name Consumer prices are accelerating in China and Germany

 

 

 

 

CPI in Germany rise by 7.8% year-on-year

CPI in Germany, in line with EU standards, rose by 7.8% on an annual basis in April
according to final data from the country’s federal statistical office

The index has become a record since the beginning of its calculations
and The inflation rate was 0.7%

The dynamics of both indices coincided with previously announced data
and the average expectations of analysts surveyed by Trading Economics

In March, the consumer prices index (CPI) in Germany rose by 7.6% year-on-year and 2.5% month-on-month

The consumer prices index (CPI), calculated according to German standards, rose by 7.4% year-on-year in April
the highest since the fall of 1981

and The consumer prices index (CPI) rose by 0.8% compared to the previous month
The dynamics of both indices also coincided with preliminary forecasts and data

In March, the index rose by 7.3% from the same month a year earlier and 2.5% from the previous month

Germany’s energy prices in April jumped 35.3% in annual terms, and the cost of food rose 8.6%
Service prices rose by 3.2%

CPI growth last month, excluding food and energy cost dynamics, was 3.8%

artical name Consumer prices are accelerating in China and Germany

 

 

 

 

Oil rises in the Asian session

Oil prices rose steadily on Wednesday morning after falling the previous day
due to traders’ concern over global economic growth and a new wave of coronavirus in China

According to MarketWatch, the decline in oil futures is also due to the rising dollar price
making oil purchases for traders using other currencies less profitable

Brent crude futures for July rose by $2.19 (2.14%) on the London Futures Exchange
to $104.65 per barrel. Brent crude fell by $3.48 (3.3 percent) to $102.46 per barrel on Tuesday

West Texas Intermediate crude futures’ prices for June rose at that moment by $2.12 (2.13%)
to $101.88 per barrel, in electronic trading on the New York Mercantile Exchange (NYMEX)
During the previous session, the futures contract fell by $3.33 (3.2%) to $99.76 per barrel

Western media reported that the European Union may agree that Hungary
and many Eastern European countries will stop buying Russian oil by 2024, not by the end of this year

Traders analyze information from the American Petroleum Institute (API)
about the weekly dynamics of American energy stocks
The country’s oil inventories rose by 1.6 million barrels in the week ending May 6
according to data from the American Petroleum Institute

The U.S. Department of Energy will release its inventory data later on Wednesday
Experts surveyed by  Wall Street Journal predicted a weekly fall of 300 thousand barrels in US oil inventories

artical name Consumer prices are accelerating in China and Germany

 

 

 

 

US stocks performance is mixed

US stock indices ended their trading on Tuesday with multi-trend changes
and investors expected inflation data in April in the United States and tracked corporate news

The Dow Jones Industrial Index fell by 84.96 points (0.26%) to 32160.74 on Tuesday
The Standard & Poor’s 500-day value rose by 9.81 points (0.25%) to 4001.05 points
Following the session, the Nasdaq Composite index jumped by 114.42 points (0.98%) – up to 11,737.67

The Labor Department’s inflation report will be released on Wednesday
Analysts expect consumer price growth to slow by an average of 8.1% in April from 8.5% in March

According to analysts, stock market volatility will continue in the near future
as market participants try to understand what will happen to the US economy
after tightening monetary policy by the Federal Reserve

In general

investors are considering three scenarios: “Soft decline”
as the Fed will be able to contain inflation without causing a recession in the economy
“Hard decline” when inflation slows at the expense of recession; Inflationary recession
when Fed rates are high enough to cause a recession in the economy, but not enough to control inflation

Stocks of cinema chain AMC Entertainment Holdings Inc. fell by 5.4%
although the company cut its adjusted loss and increased revenue in the first quarter
both of which were better than market expectations

The price of Peloton Interactive securities fell sharply by 8.7%
The United States manufacturer of sports equipment sharply increased its loss in the last quarter
and provided disappointing investors with projections for the current reporting period

Tesla Inc’s market value fell by 1.6%
Western media reported that the company halted production at its plant in Shanghai due to supply chain problems

Pfizer’s stock rose 1.8% after the pharmaceutical giant announced its acquisition of rival
Biohaven Pharmaceutical Holding Company Ltd. for $11.6 billion

artical name Consumer prices are accelerating in China and Germany

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