Tuesday night, China reported October inflation close to expectations at 5.5%. Though the whisper numbers expected something possibly around 5.3% and could cause a minor market sell-off on Wednesday, the news was wildly bullish.
Short term the market always trades off estimates. Long term though, the trading is based on the trend. The trend for inflation in China is clearly downward.
Inflation in October eased from the 6.1% annual rate in September with food prices declining 0.2% in the month.
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