The personal consumption expenditure price index in the US likely went up 0.3% month-over-month in March 2024, the same as in February. Also, the core index, which excludes food and energy, is set to rise 0.3%, matching the previous month gain. Meanwhile, the annual PCE rate is seen accelerating for a second straight month to 2.6% from 2.5% while the annual core PCE inflation likely fell to 2.6%, the lowest in three years, from 2.8%. The Fed anticipates annual PCE inflation to reach 2.4% this year, with the core rate at 2.6%.

Bank lending to households in the Eurozone increased by 0.2% year-on-year to €6.875 trillion in March 2024, easing from a 0.3% rise in the previous month. It was the slowest pace of credit growth since February 2015, as the European Central Bank's tightening measures implemented over the past months continued to weigh on consumer demand. Additionally, lending to companies rose by 0.4% to €5.132 trillion, following a 0.3% advance in February. Overall private sector credit growth, encompassing both households and non-financial corporations, picked up to 0.8% from 0.7%.

The consumer confidence indicator in France fell to 90 in April 2024, edging lower from 91 in the previous month and compared to market forecasts of 92. The latest reading also remains below the long-term average of 100. Consumers were more pessimistic regarding the outlook for the standard of living (-48 vs -42 in March) and their financial situation (-12 vs -9). Meanwhile, the share of households believing it is a favorable time to make major purchases were less negative (-33 vs -34), unemployment prospects decreased (21 vs 22), and future inflation is seen lower (-51 vs -50).

European stocks rose Friday as strong results from US tech titans Microsoft and Google-parent Alphabet bolstered the tech sector, while investors eagerly awaited the release of the PCE price data from the US later that day, seeking insights into the Federal Reserve's monetary policy trajectory. Thursday's data, revealing an uptick in first-quarter inflation, hinted that the US central bank might defer interest rate cuts until September. Among individual stocks, Thyssenkrupp soared by 9% after announcing its intention to sell a 20% stake in its steel business, and Amundi climbed 7% as it posted upbeat Q1 inflows. Meanwhile, Airbus fell more than 2% after reporting weaker-than-expected Q1 operating profit and cashflow, while SAAB dropped 1.5% despite upgrading its sales outlook, and Remy Cointreau declined 1% even though it posted better-than-expected sales figures. Finally, Anglo American rejected BHP's £31.1 billion takeover bid, stating that it significantly undervalued the company.

Singapore's manufacturing production fell 9.2% year-on-year in March 2024, tumbling sharply from an upwardly revised 4.4% growth in the previous month and worse than the market expectations of a 1.5% drop. Output remarkably declined for electronics (-11.3% vs 3.9% in February), biomedical manufacturing (-34.3% vs 26.8%), and transport engineering (-9.7% vs 19.8%). Moreover, output slowed for chemicals (4.2% vs 11.7%). Meanwhile, output rebounded for precision engineering (3.2% vs -20.2%). On a monthly basis, manufacturing activity sharply dropped to 16% in March 2024, shifting from an upwardly revised 14.6% gain in the preceding month and far above market forecasts of 8.8% fall.

The Japanese yen weakened past 156 per dollar, breaching that level for the first time since May 1990 as the Bank of Japan held interest rates steady despite pressure from a sharply falling currency, as widely expected. Meanwhile, the central bank dropped wording on buying the same amount of bonds as before, revised its inflation forecasts higher and said the economy will likely keep growing at a healthy pace. Investors also reacted to data showing Tokyo’s core inflation rate slowed to a 2-year low of 1.6% in April due largely to distortions from the start of education subsidies. The yen lost about 10% against the dollar so far this year as the BOJ held rates at near-zero levels despite elevated interest rates in other major economies, prompting traders to borrow yen and invest in higher-yielding currencies. Markets continued to watch for signals from Japanese authorities on whether they would intervene in the currency markets again to arrest the yen’s slide.