Bonds & Stocks
A rally that drove stocks to all-time highs wavered as oil climbed after the US and Iran failed to agree on terms to end their war, dashing hopes for an imminent revival of the Strait of Hormuz. The S&P 500 was little changed. The yield on 10-year Treasuries advanced two basis points to 4.38%.
Economy
China’s factory prices grew at the fastest pace in four years as the fallout from the Iran war sharply raises costs and leaves profits under pressure. Producer prices rose 2.8% in April from a year earlier after an increase of 0.5% in March, according to data released by the National Bureau of Statistics on Monday. That was the fastest since 2022 and higher than all Bloomberg estimates, whose median was 1.8%.
World
The US and Iran remain far apart on a framework to end their war and reopen the Strait of Hormuz, with President Donald Trump calling the Islamic Republic’s reply to his proposed peace plan unworkable. Tehran demanded a lifting of the US naval blockade and sanctions relief, while maintaining a degree of control over traffic through Hormuz.