Benchmarks trade near the day's high; European markets trade lower

• Major central banks are continuing to tighten monetary policy to combat energy price shocks. • Norges Bank kept interest rates at 4.25% in August, while the Norwegian economy grew by only 0.3% in the second quarter.

• The Bank of England kept interest rates on hold during its latest policy meeting while European stocks rose as oil prices declined. • The central bank projected that a surge in inflation will peak in early 2027, coinciding with the timing of agreed wage settlements.

• Rising energy prices and global borrowing costs linked to the war in the Middle East are pushing markets toward a period of stagflation on September 18. • This economic condition is characterized by the simultaneous occurrence of high inflation and slow growth.

• Major stock market averages rebounded on Thursday after falling sharply the previous day. • The market decline followed a Federal Open Market Committee decision on Wednesday to raise interest rates by a quarter percentage point.

• Several STOXX Europe 600 companies will report earnings and updates between September 22 and September 24. • The schedule includes Abivax’s half-year update on September 21 and H&M’s third-quarter results on September 24.

• The FTSE 100 index fell during midday trading on Friday as shares of Airtel Africa tumbled. • Market participants are awaiting US industrial production data scheduled for release at 1315 GMT.

• Euro zone consumers slightly increased their inflation expectations according to a recent poll conducted by the European Central Bank. • The survey results indicate a shift in how households anticipate price changes for goods and services across the region.

• The U.S. Federal Reserve implemented a hawkish interest rate hike to combat inflation. • Citi Research reports that the spot premium—the price difference between immediate and future Brent crude oil contracts—has widened significantly.

• CVC acquired a stake in Ridge, a UK built environment consultancy, from previous investment partner Horizon Capital. • The investment follows Horizon Capital's partnership with the firm which began in April 2023.

• NYSE American LLC filed a proposed rule change with the Federal Register to allow the listing of binary KPI options. • These contracts would reference specific financial metrics such as an issuer's earnings, revenues, or sales.

• The Qatar Diamond Exchange signed a memorandum of understanding with Borsa Diamanti d’Italia to strengthen commercial and industry links between the two organizations. • This partnership expands the Qatar Diamond Exchange's network into Europe after previous agreements with diamond exchanges in Singapore, Shanghai, and Tokyo.