Global Market: China's factory inflation hits four-year high, keeping metals and industrial stocks in focus

China's Producer Price Index rose 4.1 percent year-on-year in June, marking the highest reading since July 2022 and the fourth straight monthly increase, driven by coal mining, electrical machinery, electronics and ferrous metals. Consumer inflation softened unexpectedly, with CPI rising only 1.0 percent year-on-year against forecasts of 1.1 percent, reflecting weak household demand. Despite improving producer prices, domestic consumption remains subdued, auto sales declined for a ninth straight month, and authorities are targeting price wars in EVs, solar panels, lithium batteries, steel and cement sectors.