US PCE inf accelerated to 3.8% YoY in the 12 months to April, the fastest since May 2023, driven by higher energy prices linked to the Iran war, the Bureau of Economic Analysis said. March PCE was revised to 3.5% YoY. Core PCE rose 3.3% YoY in April versus 3.2% in March. The PCE gauge is the Fed's preferred metric against its 2% target; the print reinforces views the Fed could keep policy rates unchanged for an extended period, potentially into next year. Markets price the policy rate at 3.50%-3

The State Council issued the Urban Renewal "15th Five-Year" Plan, directing financial support for urban renewal. The plan will explore financing for self-directed upgrades of aging urban housing and in‑situ demolition-and-rebuild projects, actively attract private capital, and promote eligible urban renewal projects to issue infrastructure REITs and other real-estate asset securitizations. It also supports qualified urban-renewal firms issuing corporate bonds and medium-term notes. Funding will follow a beneficiary-pays principle to leverage market financing and construct a shared financing mechanism among government, market and residents; the plan also standardizes new government‑private partnership mechanisms, encourages private-sector participation in infrastructure construction and operation, and calls for cautious progress on public-utility price reform.

Euro Area May services sentiment index 2.2, expected 0.2, prior 0.9.