The unexpected rise of inflation in October in China – 4.4 per cent on a year-on-year basis – spooked global equity and commodities markets. As soon as Chinese authorities announced the unpleasant news and declared measures to contain further acceleration of price rises (a 50 basis points increase in bank reserves and possible price controls), investors around the world sold off equities and commodities in anticipation of a significant slow down of growth in China.
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