News
flow during the session was light. We did have a data focus, Chinese
inflation data for June.
China’s
wholesale
price inflation, PPI, deepened
in June:
- missed
expectations - fell
for a ninth consecutive month - fell
at its fastest
pace in 7 years
Meanwhile
the CPI was unchanged at 0% y/y.
While
in China, a fee reduction as announced for more than 1500 mutual fund
products. Combined with news from Friday on the finalising of the
penalty for Ant Group, seen as opening a pathway to the group’s
long-delayed IPO, Chinese stocks caught a bid, especially the tech
sector.
USD/JPY
was a mover in the FX space. It rallied 70 or points off its lows
despite rising JGB yields. Other
major FX rates traded small ranges only.