📆 Friday, May 31
► European stocks posted small moves as traders focused on upcoming inflation data and the European Central Bank’s meeting next week. The Stoxx 600 was little changed at +0.1%, maintaining a 2.4% gain for the month. In France, the annual inflation rate held steady at 2.2% in May, and the Q1 GDP expanded by 0.2%, indicating a stable economic environment. Producer prices in France fell by a hefty 3.6% MoM in April and are likely to have a delayed cooling effect on future consumer prices.
► U.S. equity futures are little changed, with S&P 500 futures slipping 0.2% after a tech-driven decline on Thursday. The USD and US Treasuries remained steady ahead of PCE data- which markets have been preparing for all week. Analysts are expecting the core PCE measure to ease slightly in April, which could weigh on the USD modestly. However, the market has been pricing in a rather hot reading and was strongly affected by concerns that today's PCE data could come out hot. Market sentiment is cautious as traders await signals on policy easing from the Federal Reserve. In political news, a jury found Donald Trump guilty on all 34 counts of falsifying business records at his hush-money trial. With Trump due to face sentencing on July 11, the conviction creates a daunting legal and political path as he faces President Joe Biden in November as the presumptive Republican nominee.
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