China: Focus on trade balance and inflation measures - BBH

Research Team at BBH, suggests that there are two reports in the coming days that could have impact outside of China which includes the inflation measures and trade balance. 

Key Quotes

“The first is the inflation measures. Deflation in producer prices is slowing, and the CPI appears stable.  The year-over-year rate has averaged 1.9% in the May through July period, the same as over the past 12 months. The fall in grain prices warns of the risk of easier price pressures. While easing of price pressures may give the PBOC scope to ease monetary policy, officials seem in no hurry to do so. 

The other report that may impact investors is China's trade balance. China is the largest trading partner for many countries in Asia.   Its demand for many commodities is understood to impact prices.  China's trade surplus appears to have begun growing again.  It has averaged $45.9 bln through July, according to Chinese figures, which is nearly three billion more than the average during the first seven months last year. The August surplus is expected to be near $58.3. It would be the second consecutive month above $50 bln, for the first time since December 2015 and January 2016.”