Recovery Quickens as PBOC Vows Support

Chinese industrial commodities began the week on the front
foot after the central bank pledged more powerful policies to combat the
coronavirus’s hammer blow to growth.
The evidence of the past few days, from shrinking crude and metals
stockpiles, to the rebound in car sales and usage, suggest that the domestic
recovery is intact even if it is gradual. As such, April’s inflation data on
Tuesday may prove a rear window view on the worst effects of the virus on demand
and commodities prices, with CPI expected to ease due to cheaper pork and
gasoline, and PPI to sink deeper into deflation.
Also on the agenda, the farm ministry’s Casde report will be eyed for
further indications that China will expand its soybean and corn imports to meet
its U.S. trade deal commitments. President Trump’s last comments on the phase-
one accord were to cast doubt on its future, in contrast to the more upbeat
statements from his own and Chinese officials.

By Bloomberg