The published data of the producer price index (PPI) in the United States showed an increase in the rate of inflation. According to the presented data, production inflation in annual terms increased to 11.2%, which is higher than the forecast of 10.6% and the value of 10.3% for the previous period under review. On a monthly basis, the indicator jumped to 1.4% against expectations of growth of 1.1% and February growth of 0.9%.
The foreign exchange market responded to this news by increasing the pressure of the dollar. At one point, the ICE dollar index is growing by 0.18%, to 100.47 points.
Futures for the top three major US stock indexes show mixed dynamics before the opening of trading in the US. The Dow and the S&P 500 broad market index are declining, however, not so noticeably. And the futures for the high-tech NASDAQ 100, on the contrary, are growing weakly.
We expect that the opening of trading in the US will also be multidirectional.
The presented data on industrial inflation may, as well as the previous values of consumer inflation, increase pressure on the Federal Reserve and force the central bank to raise interest rates more aggressively. In this case, the local stock market will experience pressure, and the dollar exchange rate will increase along with the yields of treasuries.
