China’s Inflation Remains Resilient Amid Producer Price Deflation Concerns

By Bob Mason
Published: August 9, 2025, 02:41 GMT

China’s inflation in July shows two clear paths. Consumer prices hold steady, and producer prices fall. This split paints a picture of mixed signals. Consumer prices do not drop, yet the factory sector shows low demand and falling prices.

Steady Consumer Inflation Gives Some Relief

Official numbers show China’s consumer prices rise 0.4% from last month in July. This rise comes after a small 0.1% drop in June. Over the past year, prices do not change. Such flat growth is better than a drop but still shows slow price movements. Prices for food, tobacco, and liquor fall by 0.8%. Transportation and communications drop by 3.1%. These numbers put pressure on authorities to fight weak price moves soon.

Producer Price Index Points to Falling Prices

Producer prices drop sharply in July. The Producer Price Index (PPI) falls 3.6% over the year. This drop is a bit more than the expected 3.3% decline. The low PPI shows industrial buyers spend less, and makers fight to win customers by cutting prices. This trend gives a sign that factories feel the heat of slow demand.

Manufacturing Data Shows Low Economic Movement

The manufacturing report adds weight to the low PPI. The S&P Global China General Manufacturing PMI drops to 49.5 in July from 50.4 in June. This drop moves the index below the number 50, a line between growth and decline. China’s National Bureau of Statistics (NBS) Manufacturing PMI slips to 49.3 from 49.7. Surveys show that makers set lower selling prices to win rare orders. Export orders shrink for the fourth month straight.

Strong Export Growth Brings Some Hope

China’s trade with the world shows strength despite low local demand. Exports jump 7.2% over the year in July, a rise from 5.8% in June. Imports rise by 4.1%, a big change from a 1.1% rise before. These numbers may help slow industrial loss. Some market experts also note signs of a US-China trade deal. A deal that cuts tariffs on Chinese goods could add strength to exports and help fight the drop in producer prices.

Market Outlook: Watch Trade Talks and New Economic Data

Looking ahead, these inflation numbers help form a view of the economy. How traders feel will depend on the US-China discussions and key reports coming on August 15. A successful deal might hide inflation worries and lift market mood. If trade talks worsen, the fall in producer prices may grow, so more will be kept in safe areas.

Recent market news shows guarded hope. The Hang Seng Index climbs 1.43% for the week ending August 8, ending at 24,859. Mainland China’s CSI 300 and Shanghai Composite Index move up by 1.23% and 2.11% each, helped by rising trade and export growth.

Conclusion

China’s inflation report in July shows solid consumer prices while factory prices continue to fall. Even as strong export numbers add a bit of hope, the path ahead depends on trade talks and new economic news. Market watchers and policymakers now turn to these signs to judge where the economy will go next.

About the Author:
Bob Mason is a financial expert with over 28 years of work in world markets. His work at rating agencies and banks covers currencies, commodities, and stocks, with a focus on Europe and Asia.

China’s July Exports Surge Despite Tariff Pressures; Hang Seng Index Climbs Amid Mixed Economic Signals

By Bob Mason | Published August 7, 2025

China’s export numbers grew by 7.2% in July compared to last year. They beat June’s 5.8% rise. Imports climbed 4.1% over the year, up from 1.1% in June. This quick jump shows a small lift in local buying and restocking. US tariff rules and mixed factory data now cloud the economic view. Still, the market stayed hopeful as the Hang Seng Index rose 0.59% during the day.

Export and Import Growth Signal Temporary Momentum

In July, Chinese officials released trade figures. These figures show exports rising fast despite high US tariffs. Imports increased, too, and point to a modest pick in local demand and stock replenishment. This gain helps ease some worry about a sudden drop.

CN Wire analysts said, "Exports stay strong even with high US tariffs. Global demand backs China’s trade. Still, we do not know if this boost will hold, as early gains may shrink." They also noted that container totals fell for the second week in a row at Chinese ports by early August. This fall warns that steady demand might not last.

Manufacturing PMI Signals Demand Contraction

Factory data paints a less bright picture. The S&P Global China Manufacturing PMI and the NBS Manufacturing PMI stay below 50. This drop means that the sector still shrinks.

S&P Global found that export orders fell for the fourth month in a row. The drop grew faster after June. The NBS index slipped to 47.1, down 1.2 points. These signals suggest that pressure from abroad still worries many.

US Tariff Policies Targeting Transshipments Present Ongoing Risks

US trade rules keep growing. Under President Trump, the administration added a 20% tax on Vietnamese goods and a 40% tax on items that move to avoid Chinese tariffs. Indonesia now faces a 19% tax on US-bound goods. New rules will soon cover indirect shipments to stop Chinese goods from routing through third countries. These rules may slow trade by raising costs and disturbing supply lines.

Economist Iris Garcia Herrero said exports will face more stress later this year. She expects growth to fall to 2–3% in Q3 and drop to about 1% in Q4. Stricter trade rules and fewer rerouting paths add to these risks.

US-China trade matters push China to work more with other nations like Vietnam and Mexico for parts and finished goods aimed at the US market. CN Wire data show that China’s share of added value in these goods climbed from 14% in 2017 to 22% in 2023. This shift makes trade flows more complex.

Market Reaction: Chinese and Hong Kong Equities Rebound

After the July trade figures came out, China’s markets recovered from early losses. The CSI 300 Index rose by 0.05% and the Shanghai Composite went up by 0.12%. In Hong Kong, the Hang Seng Index moved from about 24,908 points to a top of 25,060, closing 0.59% higher at 25,058. Investors felt uplifted by strong trade numbers, though US tax rules still raise some doubts about future growth.

Looking Ahead

Market players will watch new moves in US-China trade and review upcoming economic data. They also track Beijing’s steps to boost local demand. News on a possible trade deal or new fiscal action may lift stocks in Mainland China and Hong Kong. Yet if old disputes return, if data worsen, or if policies do not aid growth, views may soon fall.

Bob Mason writes on global stocks, currencies, and commodities and brings 28 years of market experience. Check our economic calendar and news updates for more on China’s trade rules and market shifts.

ISM Services PMI Drops to 50.1, S&P 500 Tests Session Lows

By Vladimir Zernov | Published: August 5, 2025, 14:19 GMT

The U.S. services sector shows slower growth in July. The new report from the Institute for Supply Management (ISM) tells us that the Services PMI slipped from 50.8 in June to 50.1 in July. This decline went below the analyst forecast of 51.5 yet stays just above the 50 mark that separates growth from decline.

Key Metrics Reflect Slowing Momentum

The report gives these supporting figures:

• The New Orders Index fell from 51.3 to 50.3. This drop signals that demand slows down.
• The Employment Index sank from 47.2 to 46.4. This fall indicates that hiring remains weak.

These adjacent numbers suggest that the services part of the economy grows only slowly. At the same time, there are signs that business work and hiring share the strain.

Factors Influencing Services Activity

The report shows a few forces at work. Tariffs make supply chain costs higher and push up prices. Seasonal shifts and poor weather add to the soft numbers. Even with these pressures, the economy stays in expansion for a second month. This pattern shows that the sector holds on amid tough conditions.

Market Reactions: Equities, Dollar, and Gold

When the report came out, the market moved fast:

• The S&P 500 slid to near the session low as investors worry that slow services growth could affect corporate profits and the economic pulse.
• The U.S. Dollar Index stayed above 99.00 as it bounced back after earlier falls linked to weak payroll figures.
• Gold settled near $1,370 an ounce as a firmer dollar and rising Treasury yields keep gold prices in check.

Broader Economic Context

This new ISM report adds to signs that the U.S. economy faces a mixed scene. While the services sector grows slowly, the drop in new orders and lower hiring cast doubt on how strong this pace might be. Ongoing tariff matters and other forces make the road ahead less clear.

Investors and experts will watch upcoming reports and company results closely. They seek better clues on what comes next for the U.S. economy and the market.

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About the Author:
Vladimir Zernov is a trader with more than 18 years of experience in stocks, futures, forex, indices, and commodities. His work focuses on predicting both short and long market trends.

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For ongoing updates on economic data and market views, visit our Economic Calendar.

Disclaimer: This article is for informational purposes only and does not serve as financial advice or a pitch to buy or sell assets.

Palantir Shares Surge Pre-Market After Strong Q2 Results, Lifting Nasdaq 100 and Market Mood

By James Hyerczyk | August 5, 2025, 06:20 GMT

Palantir Technologies Inc. (NYSE: PLTR) hit new highs in pre-market deals on Tuesday. The company showed strong Q2 numbers that beat all key measures. This news lifted Palantir’s stock and brought good mood to the Nasdaq 100 index as many see promise in the tech scene.

Palantir Stock Reaches Record Levels

Palantir’s shares closed Monday at $160.66, up 4.14%. Early Tuesday, the price added another 5.05% to hit $168.77. With this rise, Palantir may soon near a $400 billion market cap. The rise marks a major point for this data and software firm.

Investors saw the good news and Nasdaq 100 futures moved up by 70.75 points (0.30%) to 23,367.25 by early Tuesday.

High Revenue and Big U.S. Army Deal Push Growth

Palantir earned $1.004 billion in Q2, a 48% jump from last year. This beat analyst forecasts of $939 million. Government sales rose 53% to $426 million. A key reason was a 10-year, $10 billion deal with the U.S. Army. This deal joins 75 older contracts into one smart defense system.

CEO Alex Karp called the quarter “bombastic” and sees more work with U.S. agencies ahead. Analysts mark this deal as one of the largest software agreements at the U.S. defense body. It shows Palantir’s strong role in tech for government.

U.S. Commercial AI Work Grows Fast

Palantir’s U.S. commercial side posted a 93% rise in revenue to $306 million, passing the $273 million forecast. The firm closed $2.27 billion in contract value during the quarter, a 140% jump from last year.

The team links this gain to high demand for smart tools that help businesses make split-second choices. Fields like healthcare, transport, and making need fast data use. While its work outside the U.S. stays small, the U.S. side grows fast.

Profit Jumps and Future Numbers Go Up

Palantir’s net profit doubled to $326.7 million. Earnings per share came to $0.16 instead of $0.14. The firm now sees full-year sales between $4.14 billion and $4.15 billion. It also raises U.S. commercial targets to $1.3 billion, a jump of at least 85% over last year.

The stock now trades at more than 1000 times its earnings. This high value makes it the priciest share in the S&P 500 by the price-earnings rule. Some worry about the high multiple, yet strong profit numbers show that the company gains from its operations.

Market View: Upbeat Yet With Value Risks

Palantir’s fast growth and key U.S. contracts add strong push to its stock and the Nasdaq market. Still, some hold back due to high value and a possible slow in growth.

For now, signals point to more gains for PLTR and other tech shares as Nasdaq futures stay strong. Still, care is needed given high price-earnings numbers and changes in the wider economy.

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For those who track market shifts and Nasdaq 100 trends, Palantir’s strong Q2 numbers mark a key moment. It backs strong views in AI-based business software and U.S. tech work.

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About the Author:
James Hyerczyk is a U.S.-based market expert and teacher with over 40 years of work in the field. He studies chart shapes and has written several books on trading and analysis.

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Disclaimer: This article is for information only. It is not financial advice. Readers must do their own research and talk to a financial expert before any investing moves.

ISM Manufacturing PMI Drops to 48.0; S&P 500 Tests Session Lows Amid Mixed Economic Signals

August 1, 2025, 14:16 GMT – By Vladimir Zernov

The report on August 1, 2025 presents data where numbers point to slow factory work and a mixed mood in the market. The ISM reading falls below 50 as factory tasks slow. The S&P 500 shows early signs of weakness.

ISM Manufacturing PMI Shows Contraction

The ISM report places the Manufacturing PMI at 48.0 in July, down from 49.0 in June. The index now stays below 50; a number that marks slow activity. New orders edged up from 46.4 in June to 47.1 in July but stayed in the slow zone. Production moved from 50.3 to 51.4. This shift hints that output holds some strength amid the slow trend.

S&P Global Manufacturing PMI Aligns with ISM Data

The final S&P Global Manufacturing PMI dropped from 52.9 in June to 49.8 in July. The change sends the figure into a below-threshold range. It matched the forecast near 49.5. This match ties back to worries over the weak state of manufacturing.

Consumer Sentiment Shows Slight Improvement

The University of Michigan’s Consumer Sentiment index climbed from 60.7 in June to 61.7 in July. The rise nearly met the forecast of 62. The University still notes that the overall mood on spending remains low. Inflation views limp too. A year-ahead feeling slipped from 5.0% to 4.5%, while long-run views moved from 4.0% to 3.4%. This change may guide the next Fed steps.

Market Reactions: Dollar, Gold, and Equities

Market moves followed the report. The U.S. Dollar Index dropped close to session lows, dipping under the 98.90 mark as traders saw the weak manufacturing news. Gold prices rose near session highs toward $3,350 per ounce. A drop in Treasury yields helped push gold higher. In stocks, the S&P 500 fell near 6,220 after the data came out. Traders stayed alert after the weak ISM and the new jobs report. The Non-Farm Payrolls number remains a key signal today as investors look for hints on what the Fed might do next.

Looking Ahead

Observers watch upcoming figures and Fed notes for more clues about the U.S. economy. The drop in manufacturing numbers mixed with falling inflation views creates a scene where growth and price control face a tough task. For traders and investors, the news shows that keeping a close watch on key numbers helps when saving strategies for a shifting economy.

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About the author: Vladimir Zernov is an independent trader with over 18 years of experience on stocks, futures, forex, indices, and commodities. He studies both near-term moves and longer trends in the market.

Related Articles:

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• China Manufacturing Sector Contracts in July as Tariffs Bite: Hang Seng and AUD/USD Dip
• Apple Beats Q3 Estimates With Strongest Revenue Growth Since December 2021

For more detailed economic data and forecasts, visit the FX Empire economic calendar and markets section.