Morning Bid: China inflation kicks off week with a bang

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Morning Bid: China inflation kicks off week with a bang
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Monetary-policy guidance from New Zealand and South Korea also will be main regional drivers this week.

moves into gear too, with the tone likely to be set later in the week when some of Wall Street's biggest names report.

Much of that is due to the sluggishness of China's markets, and key indicators from the region's largest economy on Monday will get the trading week underway. Price pressures look set to remain well-rooted in deflation in the coming months. Annual producer price inflation, already the most negative since 2016, is seen falling to -5.0% from -4.6% in May.

Reflecting just how poorly China's post-lockdown economy has performed relative to consensus forecasts, Citi's Chinese economic surprises index has now fallen 11 weeks in a row. That's the longest stretch of underperformance since 2010.

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