- After dovish comments from Federal Reserve policymakers and signs that European inflation is finally slowing, stocks rose on the last trading day of the quarter, while global bonds recovered.
- Europe's STOXX 600 equity index rose more than 1% as data showing eurozone inflation at a one-year low boosted expectations that the bloc's interest rates will remain unchanged. Rate-sensitive sectors like real estate and luxury led the gains, which were aided by a bullish strategy note from Bank of America.
- Futures on the Nasdaq 100 and S&P 500 indexes were up more than 0.5%, indicating that US stocks would open higher.
- The moves signal relief after a quarter in which 30-year borrowing costs rose at the fastest rate since 2009. The July-September quarter for MSCI's all-country index was the worst since September 2022, as rising oil prices fuelled concerns about inflation and economic growth.
- Wall Street closed higher on Thursday following comments from Fed rate-setters, including Richmond Fed chief Thomas Barkin, who stated that the United States would likely avoid a severe downturn. Meanwhile, his Chicago Fed counterpart, Goolsbee, warned that policymakers risked overshooting interest rates.
- Blackrock CEO Fink: By 2025 the US economy may be entering a recession.
