STOCKS SET FOR WEEKLY DECLINE ON FED CUT EXPECTATIONS

A gauge of global stocks was poised to snap a seven-week streak of gains on Friday, while the dollar was on track for its strongest week since mid-January, as recent U.S. inflation data has led to a reassessment for the path of interest rates. Equities have struggled for upward momentum this week, after readings on U.S. consumer prices and producer prices indicated inflation remains sticky, dampening expectations the U.S. Federal Reserve will cut rates by its June meeting.

Markets are pricing in a 54.9% chance for a rate cut of at least 25 basis points (bps) by the Fed in June, down from 59.5% in the prior session and 73.3% a week ago, according to CME's FedWatch Tool. The central bank is widely expected to hold rates steady at its policy meeting next week. Data on Friday showed U.S. import prices increased marginally in February as a surge in the cost of petroleum products was partially offset by modest gains elsewhere, suggesting an improving inflation picture.

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