Norges Bank raised its policy rate by a quarter-point on Thursday to bring inflation back to the target and signaled another hike if inflation outlook warrants. The Monetary Policy and Financial Stability Committee decided to hike the policy rate to 4.50 percent from 4.25 percent. The bank had raised the rate by 25 basis points in May.

German business confidence rose to its highest level in more than three years in September as the economy continued its recovery, monthly survey data from the ifo Institute showed Thursday. The business climate index rose to 89.9 in September from 88.8 in the previous month. This was the highest score since May 2023 and was also above forecast of 89.1.

The UK private sector growth moderated to a three-month low in September, reflecting a loss of momentum in manufacturing and service sectors, flash data from S&P Global showed Wednesday. The headline composite output index fell to 51.7 in September from 52.5 in August. This was the lowest since June and below forecast of 52.0.

The euro area private sector expanded at the fastest pace since April 2023 amid solid expansions in both the services and manufacturing sectors, survey data from S&P Global revealed Wednesday. The flash composite output index advanced to 53.1 in September from 52.0 in the prior month. The score was seen at 51.7.

The UK government borrowing exceeded the government estimate in August as spending rose more than income, partly due to the impacts of inflation, data from the Office for National Statistics said Tuesday. Public sector net borrowing increased GBP 2.9 billion from the previous year to GBP 18.3 billion in August.

The Japanese yen weakened against other major currencies in the European session on Tuesday.

The New Zealand dollar strengthened against other major currencies in the European session on Tuesday amid increasing risk-on mood, as easing crude oil prices allayed concerns about global inflation and the corresponding outlook for interest rates. Markets were also boosted by technology stocks which mirrored their peers on tech-heavy NASDAQ amid renewed optimism about outlook for large AI hyperscalers.