- European stocks rose, boosted by record profits at Switzerland's UBS and hopes that the rate-tightening cycle of central banks is coming to an end.
- UBS's more than 7% gain aided the STOXX 600 index's monthly gain. As a result of its emergency takeover of Credit Suisse, the lender reported its highest-ever quarterly profit. Futures for the S&P 500 were little changed, while Nasdaq contracts fell after the underlying index gained four days in a row.
- Markets are finishing the month with price-growth data and China's weakening economy at the forefront.
- European stocks pared their gains after regional inflation stopped slowing in August, putting ECB officials in a bind as they weigh the prospect of tighter policy against signs of slowing growth. Meanwhile, the 10-Yr US Treasury yield was near a three-week low after weaker-than-expected economic data on Wednesday supported forecasts for the Fed to slow interest-rate hikes.
- Elsewhere, Brent crude oil rose for the third day in a row, and gold rose after a string of gains this week.
- Bitcoin was little changed above $27,000.
- BoE's Pill: One option for policy is to hold rates steady for longer. I tend to favour that approach on rates.
- Fed's Bostic: If inflation quickens, I would back more tightening.
- ECB's Schnabel: We can't predict where the peak rate is going to be, or for how long rates will have to be held at restrictive levels.
- BoJ's Nakamura: Japan's economic recovery required for the central bank to consider ending negative rate policy.
