Norway hikes, Sweden holds EU-low rate, hints at rise - EUROPE SAYS

• A European Central Bank study found that public speeches and interviews by policymakers between meetings can move markets as much as formal policy announcements. • Researchers analyzed a database of 304 formal policy decisions and approximately 5,000 public events occurring from January 1999 to early 2024.

• New research shows that speeches and interviews from European Central Bank (ECB) policymakers move markets as much as formal policy decisions. • The authors analyzed a database of 304 formal policy decisions and roughly 5,000 public events occurring between January 1999 and early 2024.

• Switzerland's central bank kept its policy rate at 0% and softened its efforts to fight the strength of the franc. • The bank increased its forecasts for both economic growth and inflation while other central banks, such as the Federal Reserve and European Central Bank, continued tightening.

• Isabel Schnabel is resigning from the European Central Bank to take a role at the International Monetary Fund. • Spain is supporting Pablo Hernandez de Cos for president, while the Netherlands backs Klaas Knot and France seeks the chief economist position.

• Norway raised its interest rates to 4.5% while Sweden's central bank, the Riksbank, kept its rate at 1.75%. • This decision pushed the policy-rate spread between the two nations to its widest gap since 2008.

• Traders are monitoring weekly jobless claims and corporate earnings reports on Thursday to gauge the current state of the economy. • Investors are awaiting quarterly financial results from big-box retailer Costco Wholesale and Darden Restaurants, the parent company of Olive Garden.

• Global stock markets declined recently as investors reacted to Middle East geopolitical tensions, upcoming U.S.-China trade talks, and new corporate earnings reports. • The Toronto Stock Exchange experienced a volatile session following a 1.6 percent loss the previous day.

• European Central Bank official Isabel Schnabel admitted that the way energy costs are passed through to consumer prices has been more persistent than the bank originally expected. • This admission comes amid a broader EU mid-market update featuring a selloff in long-end bonds and varying central bank actions, such as Norges hiking rates while the Swiss National Bank held at zero.

• North American stock indexes fell on Thursday as investors sold off government bonds amid concerns over inflation and the conflict in Iran. • Bond yields rose following the sharpest sell-off in U.S. Treasuries and other benchmark government bonds since last year's Liberation Day turmoil.

• H&M reported a rise in profits recently, though the company faces challenges from slow sales and increased competition from rivals Inditex and Shein. • The profit boost was driven specifically by refunds on tariffs, which are taxes imposed on imported goods.

• Global financial markets experienced a sharp sell-off in US Treasuries and benchmark government bonds on Thursday due to inflation and Iran war concerns. • Norway recently raised its interest rates, and Sweden indicated it would likely follow suit before the end of the year.