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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 on Friday.
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Market focus will be on whether both leaders at least agree on a truce to their current trade conflict, a move seen as essential for making progress towards an eventual deal.
Oil markets meanwhile could see movement resulting from 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.
Russian Energy Minister Alexander Novak said Friday he hoped the G20 gathering would provide further clarity on global oil supply and demand for OPEC and non-OPEC oil producers ahead of their decision at the upcoming meetings on July 1-2.
Read more: G20 And Quarter End Means Lively Friday FX Trade - Kathy Lien
2. U.S. stocks rise ahead of Xi-Trump meeting
Ahead of the final outcome of the meeting between the two world leaders, Wall Street will focus on consumer spending and inflation data for May due at 8:30 AM ET (12:30 GMT) Friday that will likely be evaluated for its impact on the Federal Reserve’s current wait-and-see approach. Markets expect the U.S. central bank to deliver its first rate cut since December 2008 at its July meeting.
Personal spending is forecast to have picked up to 0.4% growth, even as expectations are for personal income slow to a 0.3% gain.
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 Friday morning after having priced its initial public offering at $20, above the $17-$19 expected range.