Investing.com - Here are the top five things you need to know in financial markets on Friday, June 28:
1. G20 kicks off in Japan, bilateral meetings to steal spotlight
The meeting of G20 leaders is underway in Osaka, Japan with market focus on bilateral talks on the sidelines of the main event.
The undisputed headliners will be U.S. President Donald Trump and Chinese counterpart Xi Jinping at a bilateral meeting that will take place at 11:30 AM (2:30 GMT) local time in Osaka on Saturday. That's 10:30 PM ET this evening.
Market focus will be on whether both leaders at least agree a truce im their current trade conflict, a move seen as essential for making progress towards an eventual deal.
Oil markets will also have an eye on a planned meeting between Russian President Vladimir Putin and Saudi Crown Prince Mohammed Bin Salman, which a Kremlin spokesperson said this week was being prepared for Saturday.
The two will likely discuss whether and how to extend the current production cut agreement between OPEC and other producers, of which Russia is by far the largest.
2. U.S. stocks rise ahead of Xi-Trump meeting
U.S. futures pointed to a higher open ahead of the meeting between the two world leaders. Dow futures gained 85 points, or 0.3%, by 5:26 AM ET (9:26 GMT), S&P 500 futures rose 8 points, or 0.3%, while Nasdaq 100 futures traded up 8 points, or 0.1%.
Consumer spending and inflation data for May are due at 8:30 AM ET (12:30 GMT), and will be evaluated for their impact on the Federal Reserve’s monetary policy. Markets expect the Fed to deliver its first rate cut since December 2008 at its July meeting.
Personal spending growth is forecast to have picked up to 0.4%, despite expectations for personal income growth to slow to 0.3%.
The Fed’s preferred inflation gauge, the core personal consumption expenditures (PCE) price index, which excludes food and energy, is expected to have risen 0.2% in May, with the annual rate remaining at 1.6%.
The Chicago PMI for June will be released at 9:45 AM ET (13:45 GMT) followed 15 minutes later by the revised consumer sentiment for the same month from the University of Michigan.
On the company front, Constellation Brands (NYSE:STZ) will report earnings ahead of the bell, while RealReal will begin trading after having priced its initial public offering at $20, above the $17-$19 expected range.
Elsewhere, European equities moved higher, with Deutsche Bank (DE:DBKGn) rising after passing the Fed's stress tests and Merlin Entertainments PLC ADR (OTC:MERLY) jumping 14% after agreeing to be bought by Blackstone (NYSE:BX) and the Lego’s founding family.
Asian shares had more jitters ahead of the Trump-Xi meeting, with China’s Shanghai Composite off 0.6% and Japan’s Nikkei 225 closing 0.3% lower.
3. Apple under pressure as chief design officer leaves
Shares in Apple (NASDAQ:AAPL) fell 1% in premarket trade on Friday after the company announced that Jony Ive, its chief design officer, is leaving the company.
Ive had worked at the company for more than 20 years and was responsible for the look and feel of all Apple products.
Ive was reported to have plans to start his own design business, called LoveFrom, which The Financial Times said would have Apple as a client.
4. Banks splash the cash after passing Fed test
U.S. banks were set to boost sentiment in Friday’s trading after they passed the Federal Reserve’s stress tests, paving the way for increased dividends.
Goldman Sachs (NYSE:GS) shares jumped 2.3% in premarket trade, after the bank nearly doubled its dividend.
Bank of America (NYSE:BAC), JP Morgan (NYSE:JPM), Citigroup (NYSE:C) and Bank of New York Mellon (NYSE:BK) also saw strong gains ahead of the open.
5. Boeing confirms likely delay in 737 MAX’s return to service
Shares in Boeing (NYSE:BA) slid nearly 3% a day earlier, leading decliners on the Dow, after the U.S. Federal Aviation Administration identified a new risk that will have to be fixed before its grounded 737 MAX can return to service.
As a result of the finding, a Boeing official reportedly told Reuters that the company now believes it will complete the latest software update by September.
Southwest Airlines (NYSE:LUV) said Thursday that its 737 Max airplanes will now stay grounded at least through the end of September. By contrast, United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL) both currently plan to resume flights in early September.