AP
Global equities traded mostly higher on Friday ahead of key U.S. inflation data and an expected $6 trillion budget announcement by President
Joe Biden.
In Asia, the
climbed 2.1%. China’s CSI 300 slipped 0.3%. Stocks were flat in
though shares of Chinese online retail giant
JD.com’s
logistics arm climbed 14% in a strong debut.
The
was set to close at a fresh high, after setting a closing record on Thursday. U.S. equity futures were rising, led by a 0.5% gain for
futures, with
and Nasdaq-100 futures up 0.3% and 0.2%, respectively.
Stocks closed higher on Thursday, lifted as jobless claims continued to decline. Investors will on Friday turn their attention to the Commerce Department’s personal-consumption expenditures price index, also known as PCE, and the Federal Reserve’s preferred gauge of inflation. That index is expected to climb 0.6% from April and 3.5% from last year.
“A surge may raise questions as to whether the acceleration in headline inflation is due to transitory factors and may add to speculation that the Fed may have to start normalizing its policy earlier,” said Charalambos Pissouros, senior market analyst at JFD Group, to clients in a note.
Bond yields have been creeping up this week, with the 10-year U.S. Treasury note trading at a yield of 1.61% on Friday, up from 1.57% on Wednesday.
“Forthcoming weeks will provide further color as to whether inflation is becoming entrenched or whether it is indeed transitory as the Fed insists. This will bring with it the likelihood of both market volatility and the waxing and waning of investor sentiment as the true picture emerges,” added Richard Hunter, head of markets at Interactive Investor, in a note to clients.
Also in focus, Biden is expected on Friday to propose a $6 trillion budget for fiscal 2022 that would boost spending on infrastructure, education, healthcare and social services.
The budget would increase total spending to $8.2 trillion by 2031, the highest sustained levels of federal spending since World War II, while running deficits of more than $1.3 trillion over the next decade, the New York Times reported.
U.S. markets will be closed on Monday for the Memorial Day holiday, which traditionally marks the start of summer vacations. The U.K. will also observe a holiday on that same day, with markets closed.
Among stocks in focus, discounter Costco Wholesale reported better-than-expected fiscal-third-quarter results late on Thursday.
Shares of
could be active, after the computer maker’s first-quarter results blew past Wall Street expectations.
posted stronger-than-expected earnings and revenue, also driven by demand for its personal computers as well as printers.
