News

Rising Deflation Risks in China Impact Metal Producers

1 Mins read

Producers of metals and other raw materials experienced a decline in response to weak inflation data in China, indicating an increasing risk of deflation in the country.

China’s Economic Struggles

According to Edward Moya, a senior market analyst at foreign-exchange brokerage Oanda Group, China continues to weigh on the global economy. Moya suggests that the situation in China has become increasingly dire, leading officials to scramble for additional support for real estate developers.

Stock Rally Halted

One money manager attributes the stalled stock rally to indications of wage inflation in employment data. Furthermore, signals from the Federal Reserve suggesting more rate hikes are imminent contribute to the market slowdown. While the need for further rate hikes is questioned based on progress made in unwinding Covid-induced inflation, Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management, believes that the Fed will persist with rate hikes until there are sustained and undeniable signs of weakening employment.

It is evident that China’s struggles and the potential impacts on inflation and employment are causing uncertainty in the market.

  • Rob Curran
Related posts
News

Virtual Assets Drop as Gold Price Surge Slows

1 Mins read
Virtual Assets Drop as Gold Price Surge Slows Bitcoin Falls 1.55% to $121,562 as Gold Futures Plunge 2.39% on Profit-Taking The upward…
News

Bank of Ghana's Gold Gambit Gets Billion Dollar Boost - Ghanamma.com

3 Mins read
Timing, as they say, is everything. The Bank of Ghana couldn’t have picked a better moment to launch its gold backed foreign…
News

XRP Logs 4,335% Surge in Hourly Liquidation Imbalance, What's Next? - U.Today

1 Mins read
After struggling to hold steady at the $3 resistance level despite strong market momentum, XRP has finally returned to the red zone,…

Leave a Reply

Your email address will not be published. Required fields are marked *