China June inflation eases further, more policy stimulus anticipated
China's June consumer inflation grew at its slowest pace since January as increases in food prices eased, while producer prices extended their decline, reinforcing economists' views that more government stimulus steps will be needed to support the economy.
The consumer price index (CPI) rose 1.9 percent in June from a year earlier, compared with a 2.0 percent increase in May, the National Bureau of Statistics said on Sunday. Analysts had expected a 1.8 percent gain, a Reuters poll showed.
G20 trade ministers going for growth
TRADE ministers from the world’s major economies have agreed to lower trade costs, enhance policy coordination, strengthen trade financing and promote e-commerce amid rising “protectionism.”
“Global economic recovery remains sluggish, trade growth is lingering at a low level and investment flow has yet to recover to pre-crisis levels,” Chinese Commerce Minister Gao Hucheng said yesterday.
“G20 countries should lead the way in tackling problems facing the world economy and reviving engines for global growth,” he told a news conference at the conclusion of a two-day G20 trade ministers meeting in Shanghai.
Oil fell on Monday over signs that US shale drillers have adapted to lower prices and on renewed signs of economic weakness in Asia.
International Brent crude oil futures were trading at $46.38 per barrel at 0243 GMT, down 38 cents from their last settlement. US West Texas Intermediate crude was down 44 cents at $41.97 a barrel.
Traders said the lower prices were a result of Asian refiners beginning to cut crude orders in an adjustment to a sharp rise in crude prices since January, and also to the region's economic slowdown.
“Crude imports to Asia over the last few months are falling ... (but) volumes were so high over the last year thanks to the rush to take advantage of the low oil prices, that it was rather natural that we would see a slowdown sooner than later,” said Ralph Leszczynski, head of research at ship broker Banchero Costa.
Additionally, there is mounting evidence that US oil producers can live with crude prices of $45 or higher, as oil drillers added rigs for the fifth week in six, US oil bankruptcies became sparse in June, and bullish US oil bets dropped to near four-month lows.
Reference: The Hindu Business Line,Shanghai Daily,CNBC
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