US CPI in April YoY increased by 4.9%, while core CPI increased by 5.5%, both slightly lower than last month. The US PPI YoY growth rate in April was 2.3%, lower than the expected 2.5% and the previous value of 2.7%, reaching a two-year low. The data’s unexpected decline indicates a decrease in US inflation levels, which supports the probability that the Fed will pause rate hikes in June. However, the overseas focus in the short term is on the US debt ceiling issue. Due to the significant differences between the two parties, the market is concerned that a government shutdown beyond expectations may once again affect the economy.
Domestically, China’s manufacturing PMI in April fell to 49.2. The CPI data only increased by 0.1% YoY, and credit data was lower than expected, indicating that the current economy still faces significant pressure, and market confidence is declining. However, the market is also expecting more stable growth policies to be announced.
