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European Stocks Close Higher in Thursday Trading; EU Inflation Rises in August; Bank of England Holds Rates

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The European stock markets closed higher in Thursday trading as data show Euro area and EU inflation accelerated in August, while the Bank of England held rates steady.

The Stoxx Europe rose 0.9%, Germany's DAX advanced 0.8%, the FTSE 100 gained 1.2%, France's CAC increased 0.6%, and the Swiss Market Index closed 0.6% higher.

The annual inflation rate in the euro area rose to 3.2% in August from 2.9% in July and from 2.0% a year earlier, according to Eurostat, the statistical office of the European Union. EU inflation also increased to 3.2% during the month from 3.0% in July, and from 2.4% a year earlier.

The lowest annual rates were in Sweden (0.3%), Estonia (1.3%) and Czechia (1.5%), while the highest rates were in Romania (6.3%), Lithuania (5.6%) and Cyprus (5.2%). Compared with July, the annual inflation rate rose in 20 member countries, fell in six, and remained unchanged in one.

Meanwhile, the Bank of England's Monetary Policy Committee voted 6 to 3 to maintain the Bank Rate at 3.75%. The three dissenting members voted to increase the rate by 25 basis points.

In corporate news, UBS Group faces a potential capital requirement of as much as $20 billion as Switzerland's upper house delayed a vote on proposed banking rules to Sept. 23, Bloomberg reported Thursday.

The draft law would require UBS to back the full value of its foreign subsidiaries with high-quality CET1 capital in Switzerland, the report said.

UBS did not immediately respond to' request for comment.

Shares of the Swiss lender increased 0.3% in Zurich.

Novo Nordisk signed a strategic collaboration and license agreement with Orbis Medicines to develop oral macrocycle therapeutics for cardiometabolic diseases, Orbis said Thursday.

Under the agreement, Orbis Medicines said it could receive up to $1.4 billion in upfront and potential development and commercial milestone payments, in addition to tiered royalties on future product sales.

Orbis said that Novo will also make a strategic investment in the company.

Shares of the Danish pharmaceutical company climbed 2.5% in Copenhagen.

BP is set to resume talks with the United Steelworkers union representing workers at its Whiting refinery on Thursday, the company said Wednesday.

The BP Whiting refinery and elected representatives of United Steelworkers Local 7-1 previously met on Monday to discuss an agreement, including proposals to modernize job structures.

The British company said it is proposing a six-year agreement, an extended 150-day industrial peace clause before any future strike or lockout after the contract expiration, and wage increases that would raise pay by an average of 13% over the first four years of the contract.

Shares of the oil and gas major declined 0.5% in London.

Barclays employees are speaking out against a scheme to draw thousands of workers back to the office, the Financial Times reported Thursday.

Currently, those who live more than 40 minutes away are required to come into the office twice a week, but Barclays wants to up it to three days a week, with senior officials expected to come in at least four days, the report said.

Unite, a union representing 80% of the bank's 45,000 UK personnel, is calling for the plans to be shelved, and has encouraged workers to sign an open letter opposing the plans, the report said.

Barclays did not immediately reply to' request for comment.

Shares of Barclays rose 0.7% in London.

AstraZeneca's breast cancer drug Enhertu, developed with Daiichi Sankyo, received a recommendation from UK's National Institute for Health and Care Excellence for routine use through the National Health Service, the agency said Thursday.

The recommendation covers around 1,000 people with HER2-low advanced breast cancer whose disease has progressed following treatment, NICE said.

Shares of the British pharmaceutical company advanced 2.4% in London.

Nokia is extending its partnership with Microsoft on network automation, including the development of an agentic, AI-driven operations platform for telecommunications providers, the company said Thursday.

The collaboration combines Nokia's telco data products with Microsoft Fabric's analytics and AI capabilities, allowing operators to access data in minutes instead of weeks, the company said.

Shares of the Finnish telecommunications company surged 4.7% in Helsinki.

What else is happening in Asia Markets?

Asia Markets

Update: US Equity Indexes Fall, Treasury Yields Jump as Fed Raises Interest Rates for First Time in Over Three Years

(Updates with index/price moves, Fed policy statements, and geopolitical news from the first paragraph.)US equity indexes fell after the Federal Reserve unanimously raised interest rates for the first time in more than three years and forecast another move up of the same magnitude this year, sending government bond yields higher.The Dow Jones Industrial Average dropped 1.2% to 51,461.90, the S&P 500 declined 0.5% to 7,551.81, and the Nasdaq Composite slipped less than 0.1% to 25,978.43 on Wednesday. Energy and financials led decliners, with all but three sectors in the red.The Federal Open Market Committee raised the target range for federal funds to 3.75% to 4.00% following a 12-0 vote. This marks the first rate increase since 2023, according to Stifel Securities.Median expectations in the Summary of Economic Projections now show a further rate increase this year, as the median outlook was adjusted to 4.1% from 3.8% in the earlier June update. The SEP indicated an upward revision to inflation forecasts for 2026, with the personal consumption expenditures, or PCE, price index unlikely to fall to the Fed's 2% goal until 2029."After more than five years of significantly elevated inflation, a period which included a rate-cutting cycle, the new Warsh Fed appears to be taking a step in the right direction to combat dangerously high price pressures," Lindsey Piegza, chief economist at Stifel, said in the note. "Furthermore, with the latest SEP signaling the majority of Fed officials support some further policy firming by year-end, the Committee appears sincere in its commitment to restore price stability."Meanwhile, retail sales grew 1.2% in August following a 0.5% decline in July, the Census Bureau said. The consensus was 0.8% in a Bloomberg-compiled survey. Sales at gasoline stations jumped 3.1% after falling 0.2% the month before, while motor vehicle and parts dealers' receipts rose 0.6% following a 1.8% drop."Retail sales roared back to life in August following a disappointing performance in July," Ksenia Bushmeneva, economist at TD Economics, said in a report. "Stronger results in the volatile auto and gasoline categories, along with a rebound in online sales, played a role but were not the whole story, given the broad-based gains in core sales."US Treasury yields advanced after the Fed policy decision, turning the corner from earlier in the day. The 10-year yield climbed 2.4 basis points to 5.02%, its highest since 2007. The two-year yield soared 7.1 basis points to 4.73%, the strongest level in about three years.Oil prices fell after reports that Saudi Arabia was offering additional crude cargoes through Oman eased some concerns about Middle East supply disruptions, according to Reuters. Saudi Arabia is facilitating crude oil loadings to Asian refiners via ship-to-ship transfers off Oman's Sohar port, people familiar with the matter told Reuters.Excluding inventories in the Strategic Petroleum Reserve, US commercial crude oil stocks fell by 600,000 barrels after a 400,000-barrel decline in the previous week, versus the 1.5-million-barrel drop expected in a survey compiled by Bloomberg.The front-month US West Texas Intermediate crude oil contract sank 3.6% to $101.99 per barrel, and the global benchmark North Sea Brent slid 3.1 to $105.39 per barrel.Gold futures fell 0.7% to $4,303.6, and silver futures rose 0.6% to $66.46.J.B. Hunt Transport Services (JBHT) expects earnings from Q2 to Q3 to fall 5% to 10%, Chief Financial Officer Brad Delco said Tuesday on a conference call. The company faced "one of the most acute changes in the cost of purchased transportation," with intra-quarter spot rates rising 30%, Delco said. Shares sank 13%, among the worst performers in the S&P 500.

Dow JonesNasdaq CompositeS&P 500$JBHT
Asia Markets

Update: US Equity Indexes Mixed as Fed Almost Certain to Tighten Monetary Policy, Crude Oil Slumps

(Updates with index/price moves, macroeconomic data, and company/geopolitical news from the first paragraph.)US equity indexes traded mixed ahead of a likely interest-rate increase from the Federal Reserve later on Wednesday.The Nasdaq Composite rose 0.7% to 26,152.2, the S&P 500 climbed 0.3% to 7,609.5, and the Dow Jones Industrial Average was little changed at 52,121.8 after midday. All sectors except energy and financials advanced. Technology and industrials led gainers.Ahead of the Fed's policy announcements on Wednesday, including an update of the Summary of Economic Projections, interest rate traders are now pricing in a 93% probability that the central bank will raise its target rate by 25 basis points, up from 33% a month ago, according to the CME FedWatch tool. The remaining likelihood is that the Federal Open Market Committee will extend its pause.The Fed should raise rates, as that has never been the question, according to a note from Stifel."The real question is: Will they? And will they continue hiking?," Lindsey Piegza, chief economist at Stifel, said in the note. "The Committee may be poised to hike this afternoon, but the telltale sign of conviction to tackle inflation - as opposed to a one-time token increase - will be a willingness to follow through with additional hikes into year-end."Retail sales grew 1.2% in August following a 0.5% decline the month before, the Census Bureau said Wednesday. The consensus in a Bloomberg-compiled survey was for a 0.8% increase last month. Sales at gasoline stations jumped 3.1% in August after falling 0.2% the month before, while motor vehicle and parts dealers' receipts rose 0.6% following a 1.8% drop."Retail sales roared back to life in August following a disappointing performance in July," Ksenia Bushmeneva, economist at TD Economics, said in a report. "Stronger results in the volatile auto and gasoline categories, along with a rebound in online sales, played a role but were not the whole story, given the broad-based gains in core sales."US Treasury yields, however, retreated ahead of the policy decision. The 10-year yield dropped 4.3 basis points to 4.95%, declining from its highest since 2007. The two-year yield slumped 5.3 basis points to 4.61%, after touching multi-year highs this week.Saudi Arabia said a drone launched by the Houthis towards Mecca was intercepted, while the Iran-aligned militia group denied targeting the holy site, calling the accusation a "nauseating lie," Al Jazeera, a Middle Eastern broadcaster, reported Wednesday. The Houthis said they targeted oil facilities in Saudi Arabia's Yanbu port and Khamis Mushait airbase, the news report said, adding that Riyadh has not commented on the claims.The front-month US West Texas Intermediate crude oil contract sank 3.1% to $102.56 per barrel, and the global benchmark North Sea Brent slid 2.7 to $105.86 per barrel.Gold futures jumped 1.3% to $4,389.5, and silver futures rose 1.8% to $65.01.J.B. Hunt Transport Services (JBHT) expects earnings from Q2 to Q3 to fall 5% to 10%, Chief Financial Officer Brad Delco said Tuesday on a conference call. The company faced "one of the most acute changes in the cost of purchased transportation," with intra-quarter spot rates rising 30%, Delco said. Shares sank 13%, among the worst performers in the S&P 500.

Dow JonesNasdaq CompositeS&P 500$JBHT
Asia Markets

Exchange-Traded Funds Rise, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV were higher. Actively traded Invesco QQQ Trust (QQQ) added 0.8%.US equity indexes traded mixed ahead of a likely interest-rate increase from the Federal Reserve later on Wednesday.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) fell about 1.9% each.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) rose 1%; iShares US Technology ETF (IYW) gained 0.8%, and iShares Expanded Tech Sector ETF (IGM) was up 0.8%.The State Street SPDR S&P Semiconductor (XSD) rose 1.2%, and iShares Semiconductor (SOXX) added 1.9%.FinancialThe State Street Financial Select Sector SPDR (XLF) dropped 0.7%. Direxion Daily Financial Bull 3X Shares (FAS) declined 2.3%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), gained 2.2%.CommoditiesCrude oil lost 3.1%, and the United States Oil Fund (USO) was down 3.1%. Natural gas shed 0.8%, and the United States Natural Gas Fund (UNG) moved 1.9% lower.Gold on Comex rose 2.9%, and the State Street SPDR Gold Shares (GLD) increased 1.1%. Silver was up 1.9%, and iShares Silver Trust (SLV) gained 1.1%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) was up 0.2%. The Vanguard Consumer Staples ETF (VDC) added 0.3%, and iShares Dow Jones US Consumer Goods (IYK) rose fractionally.The State Street Consumer Discretionary Select Sector SPDR (XLY) was up 0.4%. VanEck Retail ETF (RTH) fell fractionally, and the State Street SPDR S&P Retail (XRT) gained 0.7%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) added 0.4%, while iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) gained 0.5% each. IShares Biotechnology ETF (IBB) was up 0.8%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) rose 0.8%. Vanguard Industrials Index Fund (VIS) was up 0.9% and iShares US Industrials (IYJ) gained 0.5%.CryptocurrencyIn midday activity, bitcoin (BTC-USD) fell 0.5%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) was 0.5% lower, ProShares Ether ETF (EETH) was down 0.9%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) dipped 0.7%.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH