U.S. futures and European stocks wavered amid mixed corporate earnings and as traders parsed the latest data for clues on the outlook for inflation, economic growth and the Federal Reserve's Policy path.
Still, Federal Reserve Bank of Cleveland President Loretta Mester signaled support for another rate hike to quell inflation while flagging the need to watch recent bank stress that may crimp credit and damp the economy. Her Dallas counterpart Lorie Logan said inflation has been “much too high,” while outlining measures to watch.
The 10-year Treasury yields dipped. A gauge of the dollar edged higher, heading for its first weekly gain in six weeks. The yen outperformed as signs of worsening ties between the US and China spurred traders to buy the haven currency before the weekend. European Central Bank Vice President Luis de Guindos said Friday that underlying inflation in the euro area remains “very sticky.” The ECB is widely expected to increase its deposit rate at its next policy meeting on May 4, with the choice likely to be either a quarter- or half-point step. Meanwhile, Federal Reserve officials backed another rate increase as they monitor economic fallout from bank strains.