Bank of England policymaker Ian McCafferty said more quantitative easing was likely to be required if the U.K.'s economic decline worsens, the Times reported on Tuesday.
"Bank rate can be cut further, closer to zero, and quantitative easing can be stepped up", McCafferty wrote in an op-ed for the Times.
China's consumer prices in July rose 1.8% from a year earlier, according to official data released on Tuesday.
The pace of CPI growth slowed further from June's 1.9%, below the government's 2016 target of 3%, according to the National Bureau of Statistics.
Meanwhile, China's producer prices contracted for the 53rd month in a row at 1.7% on a year-on-year basis in July. However, they did increase 0.2% from a month earlier.
"The improvement of PPI should benefit the corporate sector's profitability, but is unlikely to encourage private sector investment, as the main beneficiaries are heavy industries – which are dominated by state-owned enterprises," said ANZ economists in a note.
Wells Fargo said “We expect the Fed to remain on hold over the next few meetings, but this report supports our call for a December rate increase. While the trend in job growth has slowed over the past year, it remains sufficient in putting downward pressure on the unemployment rate. With the participation rate more stable and average hourly wages strengthening, the Fed can be more assured the labor market is at full employment.”
Crude oil prices edged down Tuesday morning in Asia on profit-taking after a sharp rally overnight as investors were emboldened by the possibility that the world’s oil cartel may reconsider a production freeze at a meeting in late September.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at $42.66 a barrel, down $0.36, or 0.8%, in the Globex electronic session. October Brent crude on London’s ICE Futures exchange fell $0.40, or 0.9%, to $44.99 a barrel.
In the near term, the market will be monitoring movements of U.S. gasoline and crude stocks movements, which likely shrunk last week by 1.6 million barrels and 1.75 million barrels, respectively, according to a survey of analysts by S&P Global Platts.
Reference: Nikkei Asian Review, Wells Fargo, Reuters, MarketWatch
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