Markets mixed, US producer prices jump

Markets were mixed on Tuesday.

The S&P 500 fell 0.2 percent but the STOXX Europe 600 rose 0.1 percent and the Nikkei 225 rose 1.0 percent.

Reports in the US on Tuesday showed that the final demand index for producer prices rose 6.6 percent for the 12 months ended in May, the largest increase since 12-month data were first calculated in November 2010, while retail sales fell 1.3 percent in May.

Fiona Cincotta, senior financial markets analyst at City Index, noted that the “mixed data hasn’t raised any eyebrows in the market”, with the latter focused on the Federal Reserve's announcement on monetary policy on Wednesday.

“Taper risks plus recent high inflation data and issues around RRP/IOER rate will likely make this the last meeting the Fed can be dovish,” said George Goncalves, head of US macro strategy at MUFG.