Chinese Stocks Volatile as Deflation Deepens; US Jobs Data Lifts Market
• Chinese stocks swung between losses and gains as trading volumes increased for an ETF favored by a state-owned institution.
• Deflation deepened in China, underscoring economic recovery challenges and raising pressure for imminent policy rate cuts.
• US stocks capped a 6th straight week of gains as solid jobs data backed speculation of avoiding a recession; traders scaled back bets on 2023 Fed rate cuts.
• Oil held Friday’s gains from US jobs data and Strategic Petroleum Reserve refill plans, but posted its longest weekly losing streak since 2018 on supply/demand imbalance signs.
• Key events this week US inflation, Fed and ECB policy decisions, China economic data, Australia and UK jobs reports.