PPI, CPI fall more than expected, market anti-optimism

Yesterday's closing, the market finally stood 2,800 points. Yesterday, the National Bureau of Statistics released May price data showed that in May p I fell 7.2%, a decline of 0 per cent than last month. 6%; CPI fell 1.4%, basically unchanged from last month.　　Two per cent of the data fell in excess of market expectations after the generally expected CPI decline of 1.3%,ppi was 6.9%.　　Tangyonggang, a macro-source securities analyst, points out that investors are more important than the data in how they interpret the data, and that the current adequacy of information on the economic recovery has made economic data more positive for equities. As the data fell more than expected, the market remained confident that analysts were generally optimistic about the May macro-data released yesterday: JPMorgan said the CPI could continue to fall in the coming months, although the worst of deflation was over. China's reform of the price of resource products (oil prices, hydropower and future electricity prices, in the context of rising global commodity prices, will help to stem deflationary expectations and increase moderate inflation expectations in a deflationary environment, and JPMorgan has raised its estimate of 2009-year CPI estimates from the original 0.5% The correction is 0.1%, and the CPI data is expected to become positive in the 3 quarter, rather than the originally estimated 4 quarters. JPMorgan further estimated that the central bank would keep its current benchmark interest rate unchanged until the 4 quarter next year, although deposit rates could be lowered to spur consumption.　　Sun, Nomura's China chief economist, predicted that the CPI deflation would end in the 4 quarter, rather than the 3-quarter previously seen by Nomura, which, in his view, would weaken the urgency of tighter monetary policy this year, despite a sharp increase in bank lending. The sound of economic recovery is more and more mainstream a a-share for the two data released yesterday to make a positive response, the cities Gaokaigao go, all the way to the concussion upstream, prev 10 months after the stand again 2,800 points, 2816.25 points, up 1.02%; Shen Chengzhi reported 10820.74 points, Rose 0.75%.　　The momentum of the shrinking turnover of several consecutive days has also been reversed, with a total of 220 billion yuan sold in Shenzhen and Shanghai, and 50% more than the day before. More than expected CPI and PPI data still provide confidence in the market, confirming the view of Acer Securities analyst Tangyonggang that the market's interpretation of macroeconomic data is more important than the macro-data itself. Tangyonggang points out that investors now have more confidence in the macro economy and more understanding of the direction and volatility of economic data. The voice of the economic recovery in the market is becoming more and more mainstream, with fewer differences. In this case, even if the future release of economic data is temporarily volatile, it is difficult to cause too much interference in market confidence. The National Bureau of Statistics of China will release May data on fixed assets investment in Thursday and will release the data on consumption data and industrial value added in May in Friday; meanwhile, China customsThe department will release the import and export figures for May in Thursday and the credit data will be released this week.　　Huang Coujun, an analyst at Everbright Securities, predicted that the forthcoming data could bring some volatility to the market, although he expects May industrial production and export data to be likely to be better than expected, although consumer data may still be unsatisfactory, but because consumer data has been volatile, it will not affect the stock market.　　Liquidity to support the current stock bubble? O ECD (Organisation for Economic Cooperation and Development) China's comprehensive first-mover index (6-month rate of change) jumped 6% from a year earlier in March to 9.5% in April, indicating a V-shaped recovery in industrial value.　　Nomura says the index has proved to be an excellent predictor of growth in Chinese industry, which suggests that the October increase in industrial value could reach a level of 15% per cent year-on-year, and that Nomura expects GDP to grow at a year-on-year rate of 10% per cent in the 4 quarter of this year if the industrial value increase is really significant. But Tangyonggang points out that the market still needs time to wait, and that the fundamentals are not enough to support the continued sharp rise in equities. The current stock price is slightly overvalued relative to the economic fundamentals, but Tangyonggang believes that with huge liquidity support, the bubbles in the stock market are not very large and acceptable.　　Tangyonggang expects the market to adjust (or adjust ahead of time) after the semi-annual release, and he believes that in the second quarter it will be better than the first quarter, and that most companies will be better off than expected in the Half-year report. Newspaper reporter Huang