Market Overview

What Impact Will Chinese Inflation Data, 'Plunging' Consumer Confidence Have On Trade Talks?

What Impact Will Chinese Inflation Data, 'Plunging' Consumer Confidence Have On Trade Talks?

China's Commerce Ministry released a statement that recent trade talks with American counterparts were "generally positive," CNBC's Eunice Yoon reported. Yet around the same time the statement was released, government data showed the Chinese consumer price index fell to 1.9 percent — below the 3-percent upper limit the central bank had set.

Producer prices index also grew at the worst pace in two years and hit a six-month low at 0.9 percent versus expectations of 1.6 percent.

Consumer Confidence Is 'Plunging'

In addition to weakness in macro economic data, consumer confidence in China is "plunging," Hao Hong of the Bank of Communications International told CNBC in an interview. The Chinese central bank continues to introduce new monetary and other policies to support and stabilize the economy. If it is unsuccessful, the continued weakness in the Chinese economy will likely become "palpable and pervasive," he said. 

Don't Expect China To Cave

The Chinese government has shown a willingness to "give what it can without threatening its strategic interests," Leon Levy of Eurasia Group told CNBC in an interview. The Chinese government doesn't "feel threatened enough" from its slowing economy to cave on any major issue, including industrial subsidies and technology transfers, Levy said. 

'Overall Uncertainty'

"There's overall just basically uncertainty," Christian Fang of Moody's Investors Service told CNBC. At the start of the week, there were reports the two sides made some progress toward finalizing a trade agreement. What is more likely to be seen ahead of the March deadline are "swings between conflicts and compromise, competition and co-operation," he said. 

Related Links:

What's Next For US And China Trade Talks?

Trump Economic Advisor Says 'Heck Of A Lot Of US Companies' Have Trade War Earnings Risk

Posted-In: China Christian Fang CNBCAnalyst Color Emerging Markets Markets Analyst Ratings Media Best of Benzinga


Related Articles

View Comments and Join the Discussion!

Latest Ratings

ELMDDougherty & Co.Initiates Coverage On12.0
MRNSCantor FitzgeraldAssumes7.0
MNRLCapital One FinancialInitiates Coverage On23.0
SONVertical GroupUpgrades
UNPMorgan StanleyMaintains136.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Russia Sees Bitcoin As A Key To Access The Capital Market

Which Sectors Are Best Poised For A Comeback In 2019?