The week was set to begin on a weak note after figures showed a decline in a broad measure of credit in China that triggered concerns of a further weakening in the world’s number two economy
Equities wavered on Monday as traders took a breather after the past weeks’ healthy run as they digested weak Chinese data and reports that the US planned to ramp up tariffs on clean energy products from China.
A sharp decline in US consumer confidence and a pick-up in inflation expectations also weighed on sentiment as eyes turn to the release later this week of the latest consumer price index (CPI).
The figures follow a recent rally across global markets fuelled by hopes that the Fed and other major central banks will soon reduce interest rates.
The week was set to begin on a weak note after figures showed a decline in a broad measure of credit in China that triggered concerns of a further weakening in the world’s number two economy.
That came as the WSJ reported that the White House is looking at almost quadrupling tariffs on Chinese electric vehicles as part of a plan that will also target batteries and solar cells.
A decision, expected on Tuesday according to reports, would come as President Joe Biden prepares for a rematch with Donald Trump in November’s presidential election.
Last month, he urged for a tripling on tariffs for steel and aluminium as he courted blue-collar voters.
Still, analysts said the decision on electric vehicles would not likely have much impact on China’s growth as the sector was not reliant on US buyers, while some said retaliatory actions were unlikely.
The news came after weekend figures showing China’s CPI increased more than expected in April, marking the third consecutive month of gains and providing some new hope for the economy.
