Data showing Chinese consumer prices rising more than expected last month provided some fresh optimism over the world's number two economy. Photo: STR / AFPEquities fluctuated Monday as traders took a breather after the past weeks' healthy run as they absorbed weak Chinese data and reports that the United States planned to ramp up tariffs on clean energy products from the Asian country.
A decision, expected on Tuesday according to reports, would come as President Joe Biden gears up for a rematch withStill, analysts said the decision on EVs would not likely have much impact on China's growth as the sector was not reliant on US buyers, while some said retaliatory actions were unlikely.
Investors are now keeping a close eye on the US CPI, which is due Wednesday and will be pored over for an idea about the Fed's plans. The reading comes after three straight months of forecast-beating readings that have seen a whittling away of rate cut expectations. "As long as the labour market remains tight, consumer resilience could continue to dampen hopes of inflation cooling off," Subadra Rajappa, at Societe Generale in New York, said.Discussion on the US rate outlook comes as expectations rise that the European Central Bank and Bank of England are planning to cut in the summer.