A US-China trade deal, with lower tariffs on Chinese goods, could further boost exports, easing deflationary pressures. On the other hand, an escalation in US-China tensions may weigh on external demand, potentially intensifying deflationary pressures.
Market Outlook: Trade Talks and Looming Economic Data Key
China’s inflation numbers will set the early tone for the week. However, trade developments and key economic data on August 15 may ultimately drive sentiment.
Progress toward a US-China trade deal would likely overshadow the inflation numbers, lifting sentiment. Market sensitivity