Stock markets mostly rise before US inflation, amid vote activity [Video]

Stock markets mostly climbed and the dollar diverged Friday awaiting key US inflation data and with focus on upcoming global elections and yen weakness.

Traders are waiting on the personal consumption expenditures index reading — the Federal Reserve’s preferred gauge of inflation that could help determine its plans for cutting interest rates.

The PCE report is tipped to show a further slowdown in prices, though there is a fear that a forecast-busting reading could dent hopes for a cut this year, while a lower-than-expected figure could ramp up bets for more than one before January.

“US inflation numbers dominate the agenda,” Russ Mould, investment director at AJ Bell, noted Friday.

“The market is likely to react positively if inflation comes in as expected as it would boost confidence that we’re only a stone’s throw away from the Fed cutting rates.”

Fed officials have tried to temper rate-cut expectations, warning they …