Wall Street stocks climbed Friday after data showing cooling US inflation raised hopes of an interest-rate cut, while French equities slid before a weekend election predicted to see strong gains for the far right.

The core personal consumption expenditures (PCE) price index rose by 0.1 percent monthly in May, compared with a 0.3-percent gain in April. It dropped to 2.6 percent on an annual measure in May.

The core PCE, which excludes volatile food and energy prices, is the US Federal Reserve's preferred measure of underling inflation. The drop adds to the case for it to begin cutting interest rates, which currently sit at a 23-year high.

The data "could set the stage for a September cut and potentially put the Fed on track to cut rates more than once this year," said Bret Kenwell, US investment analyst at eToro online brokerage.

Fed officials have tried to temper rate-cut expectations, warning they wanted to see more evidence inflation was being brought under control. Kenwell said inflation data over the summer would be important in determining the timing of a cut.

Wall Street stocks advanced as trading got underway, with the Dow adding 0.3 percent.

Investors were digesting an election debate Thursday between US President Joe Biden and his predecessor Donald Trump.

"We don't think Biden's disastrous performance at last night’s debate will have a material impact on markets in the short term," said Kathleen Brooks, research director at XTB.

"The election is still many months away and a lot could change."

In Europe, the Paris stock market dropped on the last day of trading before France's first-round legislative polls on Sunday.

President Emmanuel Macron's centrist alliance was facing potential defeat to a surging far right, whose spending plans could put Paris on course for a standoff with the European Union.

That is followed by Britain's general election on Thursday, which is expected to see the ruling Conservatives of Prime Minister Rishi Sunak ousted after 14 years in government and replaced by the main opposition Labour Party.

Official data Friday showed the UK economy's recovery from recession was stronger than previously thought in the first quarter.

London's FTSE 100 added 0.1 percent.

In Asia, the yen extended losses to hit a fresh 38-year low Friday, putting investors on guard for a possible intervention by Japanese authorities, before rebounding.

Asian equity markets mostly closed higher.

Key figures around 1330 GMT

New York - Dow: UP 0.3 percent at 39,298.15 points

New York - S&P 500: UP 0.2 percent at 5,493.00

New York - Nasdaq Composite: FLAT at 17,862.39

London - FTSE 100: UP 0.1 percent at 8,190.02 

Paris - CAC 40: DOWN 0.8 percent at 7,544.40

Frankfurt - DAX: UP 0.1 percent at 18,219.12

EURO STOXX 50: DOWN 0.3 percent at 4,889.53

Tokyo - Nikkei 225: UP 0.6 percent at 39,583.08 (close)

Hong Kong - Hang Seng Index: FLAT at 17,718.61 (close)

Shanghai - Composite: UP 0.7 percent at 2,967.40 (close)

Dollar/yen: DOWN at 160.38 yen from 160.79 yen on Thursday

Euro/dollar: DOWN at $1.0699 from $1.0707

Pound/dollar: DOWN at $1.2641 from $1.2642

Euro/pound: DOWN at 84.66 pence from 84.67 pence

Brent North Sea Crude: UP 0.2 percent at $86.56 per barrel

West Texas Intermediate: UP 0.2 percent at $81.89 per barrel