Global shares ticked higher after U.S. inflation data showed no worrying signs of fresh upward momentum last month, as expected, though investors were still in the dark about when the Federal Reserve would start cutting interest rates.

U.S. stock index futures reversed earlier losses and edged higher ahead of the opening bell on Wall Street.

The U.S. Commerce Department said the personal consumption expenditures (PCE) price index, widely seen as the Fed's favoured inflation indicator, increased 0.3% last month, unchanged from March.

"The good news is, it's not worse. And that's exactly what we need with inflation data right now," said Art Hogan, chief market strategist at B Riley Wealth.

Oil was slightly weaker, the dollar eased, and U.S. Treasury yields drifted lower after the release.

"The longer you get the market inflation lingering close to 3%, the harder it is for the Fed to make a case for cutting rates. Certainly there's nothing in these numbers that advances the Fed's rate cutting idea," said Joseph Trevisani, senior analyst at FX Street.

Ealier, data showed euro zone inflation rose more-than-expected in May, though analysts said this was unlikely to stop the European Central Bank from lowering borrowing costs on Thursday, but may cement the case for a pause in July.

German government bond yields rose to their highest in over six months.

"The big driver in the market at the moment is the same old story of when is the Fed going to pivot and start cutting rates," said Mark Ellis, CEO of Nutshell Asset Management.

"Although stock markets have performed strongly in May, just in the last week it seems very stressed. I'm expecting that to subside today, and seasonally the first week of June is pretty good for markets," Ellis added.

The MSCI All Country Stock index edged up 0.15% to 782.27 points, but was down nearly 2% on the week after yields on government bonds rose, though the benchmark is still up more than 7% for the year.

In Europe, the STOXX index of 600 companies was last up 0.3%, but also heading for a second week of declines, though was still likely to show gains for May.

Ellis said expectations that the ECB will move before the Fed in cutting rates, the opposite to what has historically happened, is largely priced into markets.

Analysts said they expect little impact on Wall Street from news that Donald Trump has become the first U.S. president to be convicted of a crime ahead of a November vote when he will try to win back the White House from Democratic President Joe Biden.

ASIA WEAKER

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.5%. The index was set for a gain of about 2.7% in May, rising for the fourth straight month.

China stocks were down 0.4%, while Hong Kong's Hang Seng index was off 0.8%.

China's manufacturing activity unexpectedly fell in May, an official factory survey showed on Friday. The soft outcome kept alive calls for fresh stimulus as a protracted property crisis continues to weigh on businesses, consumers and investors.

Traders are also looking over their shoulders for any hints of intervention from the Tokyo authorities as the Japanese yen flirts with levels that led to suspected bouts of intervention late in April and early this month.

The yen was last at 156.83 per dollar, having touched four-week lows of 157.715 on Wednesday. The currency weakened to its lowest in 34 years at 160.245 on April 29, sparking at least two suspected rounds of interventions.

Core consumer prices in Japan's capital rose 1.9% in May on rising electricity bills but price growth excluding the effect of fuel eased, heightening uncertainty on the timing of the central bank's next interest rate hike.

The dollar index, which measures the U.S. currency against six others, was trading at 104.41, on course for a 1.4% decline in May, snapping a four-month winning streak.

The euro was firmer at $1.08777.

In commodities, Brent crude oil futures were down 0.12% at $81.76 a barrel after a surprise build in U.S. gasoline stocks weighed on the market, although U.S. West Texas Intermediate (WTI) crude was slightly firmer at $77.93.

Gold firmed and was set for a fourth straight monthly gain, trading at $2,351 per ounce.

(Editing by Shri Navaratnam, Stephen Coates and Giles Elgood; Editing by Sharon Singleton, Kirsten Donovan)