WASHINGTON (dpa-AFX) - The major U.S. index futures are currently pointing
to a higher open on Friday, as investors react to the release of closely watched
inflation data.

Early buying interest may be generated in reaction to a Commerce Department
report showing readings on consumer price inflation in the month of May came in
line with economist estimates.

The report said the personal consumption expenditures (PCE) price index came in
unchanged in May after rising by 0.3 percent in April. The unchanged reading
matched expectations.

The core PCE price index, which excludes food and energy prices, inched up by
0.1 percent in May after climbing by an upwardly revised 0.3 percent in April.

Economists had expected the core PCE price index to tick up by 0.1 percent
compared to the 0.2 percent increase originally reported for the previous month.

The Commerce Department also said the annual rates of growth by the PCE price
index and the core PCE price index both slowed to 2.6 percent from 2.7 percent
and 2.8 percent, respectively. The slowdowns also matched estimates.

The readings on inflation, which are said to be preferred by the Federal
Reserve, were included in the Commerce Department's report on personal income
and spending.

The report showed personal income climbed by slightly more than expected, while
personal spending rose by slightly less than expected.

The slowdowns in the annual rates of consumer price growth may lead to optimism
about the outlook for interest rates, as Fed officials have repeatedly said they
need greater confidence inflation is slowing before they will consider cutting
rates.

With traders looking ahead to today's release of closely watched inflation data,
stocks turned in a lackluster performance during trading on Thursday. The major
averages spent the day bouncing back and forth across the unchanged line.

The major averages eventually ended the session modestly higher. The Dow crept
up 36.25 points or 0.1 percent to 39,164.06, the Nasdaq rose 53.53 points or 0.3
percent to 17,858.68 and the S&P 500 inched up 4.97 points or 0.1 percent to
5,482.87.

The choppy trading on Wall Street came as traders seemed reluctant to make
significant moves ahead of the release of the key inflation data on Friday.

On the U.S. economic front, a report released by the Labor Department showed
first-time claims for U.S. unemployment benefits fell by more than expected in
the week ended June 22nd.

The Labor Department said initial jobless claims dropped to 233,000, a decrease
of 6,000 from the previous week's revised level of 239,000.

Economists had expected jobless claims to edge down to 236,000 from the 238,000
originally reported for the previous week.

Meanwhile, the Commerce Department released a report showing new orders for U.S.
manufactured durable goods unexpectedly crept higher in the month of May.

The report said durable goods orders inched up by 0.1 percent in May after
rising by a downwardly revised 0.2 percent in April.

Economists had expected durable goods orders to slip by 0.1 percent compared to
the 0.6 percent increase that had been reported for the previous month.

Excluding an increase orders for transportation equipment, durable goods orders
edged down by 0.1 percent in May after climbing by 0.4 percent in April.
Ex-transportation orders were expected to rise by 0.2 percent.

Most of the major sectors showed only modest moves on the day, contributing to
the lackluster performance by the broader markets.

Networking stocks saw considerable strength, however, with the NYSE Arca
Networking Index climbing by 1.3 percent.

Significant strength was also visible among computer hardware stocks, as
reflected by the 1.3 percent gain posted by the NYSE Arca Computer Hardware
Index.

Airline, gold and software stocks also saw notable strength, while a steep drop
by shares of Micron (MU) weighed on the semiconductor sector.

Micron plunged by 7.1 percent after the chipmaker reported better than expected
fiscal third quarter results but provided guidance that disappointed investors.

Commodity, Currency Markets

Crude oil futures are rising $0.39 to $82.13 a barrel after advancing $0.84 to
$81.74 a barrel on Thursday. Meanwhile, after jumping $23.40 to $2,336.60 an
ounce in the previous session, gold futures are climbing $12.90 to $2,349.50 an
ounce.

On the currency front, the U.S. dollar is trading at 160.57 yen versus the
160.76 yen it fetched at the close of New York trading on Thursday. Against the
euro, the dollar is valued at $1.0701 compared to yesterday's $1.0704.

Asia

Asian stocks advanced on Friday, the dollar stuck to nearly two-month highs and
Treasury yields fell as traders awaited a key U.S. inflation reading later in
the day that could influence the Federal Reserve's decision on when to begin
cutting interest rates.

Gold was marginally lower in Asian trading, while oil extended gains for a third
day and was poised for a third straight weekly jump as rising Middle East
tensions stoked worries about global supply disruptions.

China's Shanghai Composite Index increased 0.7 percent to 2,967.40 ahead of key
purchasing managers index data due over the weekend. Hong Kong's Hang Seng Index
finished marginally higher at 17,718.61.

Japanese markets rose notably to reverse some of the previous session's losses.
The Nikkei 225 Index climbed 0.6 percent to 39,583.08 as a slew of data showed
inflation in Tokyo picked up in June, industrial output rose more than expected
in May and the May jobless rate was unchanged at 2.6 percent.

The broader Topix Index closed up 0.6 percent at 2,809.63, reaching a 34-year
high amid gains in the technology sector.

The yen hit 161.27 per dollar, its weakest since 1986 ahead of the latest U.S.
personal consumption expenditures price index.

Seoul stocks ended higher despite industrial output falling in May due to
continued declines in consumption and investment. The Kospi rose 0.5 percent to
2,797.82.

Australian markets eked out modest gains as higher bullion prices boosted gold
mining stocks. The benchmark S&P/ASX 200 Inched up 0.1 percent to 7,767.50,
while the broader All Ordinaries Index crept up 0.1 percent to 8,013.80.

Suncorp 3.6 percent after Federal Treasurer Jim Chalmers gave the go-ahead to
ANZ to acquire its banking arm. Nine Entertainment rose 1.1 percent after an
announcement that the trouble-plagued media firm will cut up to 200 jobs.

Europe

European stocks are mixed on Friday as investors digest a slew of regional data
as well as the closely watched U.S. inflation data.

The British economy recovered more than initially estimated in the first
quarter, the latest data from the Office for National Statistics showed.

Gross domestic product grew 0.7 percent from the fourth quarter, when the
economy shrank 0.3 percent. In the initial estimate, the rate of expansion was
0.6 percent.

With this, the country has now come out of a technical recession, as GDP
contracted in the previous two quarters.

French consumer price inflation eased in June to the lowest level in nearly
three years amid a slowdown in costs for food and energy, a provisional estimate
from the statistical office INSEE revealed.

The consumer price index climbed 2.1 percent year-over-year in June following a
2.3 percent increase in the previous month. This was the weakest inflation since
August 2021, when prices had risen 1.9 percent.

Elsewhere, the number of people out of work in Germany rose more than expected
in June, Federal Labour Office figures showed.

While the French CAC 40 Index has slid by 0.8 percent ahead of the upcoming
parliamentary elections, the German DAX Index is up by 0.1 percent and the
U.K.'s FTSE 100 Index is up by 0.2 percent.

Retailer JD Sports Fashion and PUMA SE have fallen after Nike, the world's
largest sportswear maker by revenue, warned sales would fall this year.

Delivery Hero SE shares have also dropped. The German online food delivery
platform has announced that Marie-Anne Popp will take on the responsibility of
interim Chief Financial Officer (CFO), effective from 1st July 2024 after
current CFO Emmanuel Thomassin resigned with immediate effect to pursue other
opportunities.

Deutsche Beteiligungs shares have plunged. The capital market company said it
plans to issue convertible bonds due 2030 in an aggregate principal amount of
100 million euros. The bonds are convertible into new and/or existing no-par
value registered shares in the company.

Meanwhile, Nokia has risen after the Finnish telecoms giant agreed to acquire
Infinera in a $2.3 billion deal to strengthen its optical-networks business.

U.S. Economic Reports

The Commerce Department released closely watched consumer price inflation data
on Friday, with the readings for the month of May coming in line with economist
estimates.

The report said the personal consumption expenditures (PCE) price index came in
unchanged in May after rising by 0.3 percent in April. The unchanged reading
matched expectations.

The core PCE price index, which excludes food and energy prices, inched up by
0.1 percent in May after climbing by an upwardly revised 0.3 percent in April.

Economists had expected the core PCE price index to tick up by 0.1 percent
compared to the 0.2 percent increase originally reported for the previous month.

The Commerce Department said the annual rates of growth by the PCE price index
and the core PCE price index both slowed to 2.6 percent from 2.7 percent and 2.8
percent, respectively. The slowdowns also matched estimates.

The readings on inflation, which are said to be preferred by the Federal
Reserve, were included in the Commerce Department's report on personal income
and spending.

The report showed personal income climbed by slightly more than expected, while
personal spending rose by slightly less than expected.

At 9:45 am ET, MNI Indicators is scheduled to release its report on Chicago-area
business activity in the month of June.

The Chicago business barometer is expected to climb to 40.0 in June from 35.4 in
May, although a reading below 50 would still indicate contraction.

The University of Michigan is due to release its revised reading on consumer
sentiment in June at 10 am ET. The consumer sentiment index for June is expected
to be upwardly revised to 65.8 from 65.6, which was down from 67.4 in May.

At 12 pm ET, Federal Reserve Board Governor Michelle Bowman is scheduled to
participate in a discussion before the Ronald Reagan Presidential Foundation and
Institute Leadership Council Conference.

San Francisco Federal Reserve President Mary Daly is due to discuss the impact
of AI on business and the workforce before the Aspen Ideas Festival's
'Navigating Tomorrow's Economy' session at 12:40 pm ET.



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