- Before an interest rate decision later Thursday, European markets struggled for direction. Oil is approaching a 10-month high, while Nasdaq futures are rising.
- The euro fluctuated as money markets priced in a two-thirds chance of another rate hike at the European Central Bank meeting. Crude rose after an IEA report added to warnings of a supply shortage. European stocks rose 0.3%, led by gains in energy companies.
- Soaring global oil prices are exacerbating Europe's persistent cost pressures, even as economic growth falters. In contrast, the US inflation report on Wednesday was in line with expectations, fuelling hopes that the Federal Reserve will pause rate hikes.
- In Asia, demand for Japanese 20-year bonds at auction was the highest since May 2020, assuaging concerns about the Bank of Japan's potential normalisation of monetary policy.
- Japan's Nikkei 225 outperformed the region, and stocks in South Korea and Australia gained ground as well. Shares in Hong Kong and mainland China fluctuated as concerns about the property sector persisted. Country Garden dropped as the deadline for holders of a yuan bond to vote on the company's repayment extension request approaches.
- China cuts RRR by 0.25 ppt.
