MARKET: US producer price inflation rose the most in three years – Trump landed in China

President of the United States Donald Trump landed in China on Wednesday to meet the Chinese President Xi Jinping. The summit between the two countries is set to discuss trade between the United States and China. The meeting’s agenda also reportedly includes the Iran war and US arms sales to Taiwan.

Trump’s entourage includes, among others Nvidia’s managing director Jensen Huang and Tesla’s managing director Elon Musk. According to Reuters sources, Trump asked Huang to come along at the last minute before leaving.

On Wall Street, stocks opened in a downward direction on Wednesday.

Among the major indexes, the flagship index Dow Jones opened on Thursday with a 0.4 percent decline. The broad S&P 500 index was down 0.1 percent after trading began.

Meanwhile, the technology-focused Nasdaq was up 0.2 percent.

Producer price inflation at its highest level in three years

In the United States, producer price inflation accelerated to its fastest pace since 2022.

Producer price inflation describes the increase in the prices of goods and services during the production phase. The acceleration of inflation is fueled by the rise in energy prices caused by the Iran war and the closure of the Strait of Hormuz.

The US producer price index rose 6.0 percent year-on-year. The analyst forecast compiled by Bloomberg expected the producer price index to rise by only 4.8 percent.

Inflation figures caused US government bond interest rates to rise slightly. The interest rate on the country’s ten-year government bond increased by 0.5 percentage points to 3.937 percent. The interest rate on the two-year US government bond was up 0.2 basis points at 3.375 percent.

In the United States, energy costs rose by 7.8 percent in April.

The price of oil has remained flat on Wednesday. The price of Brent crude oil was 107 dollars per barrel at the time of the review. The price of the US WTI oil grade was slightly higher at $102 per barrel.