Global Markets React to Inflation Concerns in US and China

After the focus on US inflation figures, attention now turns to China's producer and consumer price inflation, as investors analyze the extent to which they indicate a cooling of wider deflationary pressures. China's economy has faced challenges this year, including a low currency, stock and bond sell-offs, an imploding property sector, and the threat of deflation. The upcoming PPI and CPI readings will be closely watched for signs of economic reflation. Meanwhile, the bigger picture for markets continues to be dominated by US yields and the Federal Reserve's policy outlook.