Low inflation brought a week-long stock rally to a stop. Investors are counting on rising prices to eventually catch up to the elevated prices of stocks, but producer prices fell for the 43rd month in a row and consumer prices were up just 1.6 percent from the year before. From Xinhua:
The China inflation report dampened global markets. U.S. bond yields dipped below 2 percent on this news and a report of declining imports in China. A decline in imports and exports was expected, but China imports fell a surprising 17 percent in nominal terms from the year before.