U.S. bond yields dipped to three-month lows and a broad gauge of Asian shares rose on Friday as investors looked past rising U.S. consumer prices and focused on one off-factors which suggested higher inflation could be short-lived.
Some economists say the rise in the U.S. consumer price index reflected short-term adjustments related to the reopening of the economy, and many investors appear confident that the Federal Reserve is deftly handling a rebound in economic growth - even as questions remain about how it defines "transitory". read more
European bourses were set for a stronger open a day after the European Central Bank raised its growth and inflation projections, while pledging a steady flow of stimulus for now. read more
Pan-region Euro Stoxx 50 futures were up 0.2% in early trades and German DAX futures gained 0.08%. FTSE futures rose 0.2%.
Data overnight showed the U.S. consumer price index posted its biggest year-on-year increase since August 2008 at 5%, following a 4.2% rise in April. However, there were hefty contributions from short-term rises in airline ticket prices and used cars, raising some doubts about underlying inflationary pressures.
At the same time, U.S. Labor Department data showed the lowest level of new claims for unemployment benefits in nearly 15 months last week. read more
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was last up 0.38%. Japan's Nikkei (.N225) swung between small gains and losses before finishing a hair lower.