Friday preview: Unite trading update, US inflation print due

(Sharecast News) - On Friday's docket, a trading update from student accommodation provider Unite Group is due, as well as the latest US and Chinese inflation readings. As far as the US consumer price index is concerned, AJ Bell analysts Russ Mould and Danni Hewson said: "The upcoming CPI reading for March will show the initial impact of soaring energy markets, even if the US is somewhat insulated by being a net exporter of oil and gas.

"But close attention is likely to be paid to the core number, which strips out volatile food and energy costs, to get an idea of whether the inflation bug is spreading more broadly across the economy."

The preliminary University of Michigan sentiment index for April is also scheduled for release.

ING said: "Friday's March CPI data is likely to show annual headline inflation jumping to 3.4% from 2.4% on gasoline price hikes, but the University of Michigan's (UoM) consumer sentiment report, released 90 minutes later, will be just as important.

"Fed Chair Powell acknowledged in a Q&A session at Harvard last Monday that the central bank's available tools have no meaningful effect in combating supply shocks - they can't print oil for example.

"All the Fed can do is try to ensure that inflation expectations remain contained and, if necessary, they can restrain demand by tightening monetary policy. Right now, the UoM 5-10Y ahead inflation expectations remain well-behaved at 3.2%, but if they jump to say, above 3.5%, the rhetoric from the Fed may well become more hawkish."