After August entered, countries have successively announced the latest inflation data. In addition to the CPI data, there are also PPI data.
We find that we all think that the inflation in the United States is high, but in fact, the high in Europe is even more exaggerated.
both think that China's inflation is low, but China's A-shares performed the worst.
01
Last night, the United States released the latest PPI data, a year-on-year increase of 9.8%. Although it finally fell below 10% compared with last month, it is still at a higher level compared with the past historical period. Even after excluding food and energy, the core PPI still grew by 7.6% year-on-year.
However, this data is indeed much more optimistic compared to the euro zone. Last week, the euro zone also announced its latest PPI. Because the euro zone takes a lot of time to count, the latest PPI currently released is still the June data, with a year-on-year increase of 35.8%, which is very exaggerated and unimaginable.
In fact, the eurozone May PPI announced in early July is also very exaggerated, with an increase of 36.3% at that time, and the PPI in April even reached 37.2%.
So compared with the euro zone, the US PPI looks much better.
But the most beautiful inflation data is undoubtedly China. We also released the inflation data for July this week, with CPI rising only 2.7%, which is still a new high this year. Although the PPI increase is a little higher, reaching 4.2%, it is far lower than the United States and Europe. Compared with our own data vertically, it has also dropped significantly compared with October and November last year.
undoubtedly, our inflation data performs very well.
02
Although the inflation data in Europe performed poorly at the economic level, the stock market in Europe performed relatively well at the stock market level.
We can find an interesting phenomenon by comparing the rise and fall since 2022.
Although the euro zone's PPI has exceeded 30% for several consecutive months, and even at its highest level is close to 40%, so far this year, the French stock market has fallen only 8.5%, and the German index has fallen slightly higher, and it is currently only down 13.8%.
Inflation in the United States is also relatively high this year. The CPI is similar to that in Europe, but the PPI is much lower than in Europe. This month, the US PPI finally fell back to the range below 10.
Compared with that of the US stock index, the decline this year is slightly higher than that of Europe. As of the previous trading day, the Nasdaq fell 18.3%, and the S&P 500 fell 11.7%. Of course, the Dow Jones Industrial Average in the United States has experienced the smallest decline, down 8.3% this year.
As a comparison, let’s take a look at the situation of A-shares. From the perspective of inflation data, China’s economy performed the best and inflation was the lowest. PPI has fallen back to 4.2%, but the A-shares have fallen significantly since the beginning of this year.
Although there has been a slight rebound during this period, the Shanghai Composite Index has fallen 10% so far, the Shanghai and Shenzhen 300 Index has fallen 15%, and the ChiNext Index has fallen 18.5%.
From this perspective, the impact of inflation data, especially PPI data, on the stock market is really hard to say.
03
The PPI data released by the United States last night was released, with a year-on-year growth of 9.8%, which is still in a high range, but the market's performance is actually good.
After the news was announced, the three major indexes rose at the same time, with an increase of more than 1%, and the Nasdaq Index even reached 1.3%.
Among all industries in the U.S. stock market, energy stocks performed the best last night. Among them, Occupy Oil, which Buffett continued to increase its holdings, rose 4% last night, and Karon and Marathon Oil, which had the highest gains, both rose by more than 7%.
Chinese stocks performed well last night, with Nasdaq China Golden Dragon Index rising 2.6%, Xiaopeng among new energy vehicles rising 7.5%, and NIO and Ideal rising 3% respectively.
The current inflation in the United States has begun to peak and fall, and the stock market will strengthen further in the future.
When will A-shares, which have been in low inflation, really rise?
