The European Central Bank raised its key interest rates by an unprecedented 75 basis points on Thursday and promised further hikes, prioritising the fight against inflation even as the bloc is likely heading towards a winter recession and gas rationing.

The number of Americans filing new claims for unemployment benefits fell last week to a three-month low, underscoring the robustness of the labor market even as the Federal Reserve raises interest rates.

Chinese consumer and producer price inflation fell in August, data showed on Friday, as a new round of COVID-19 restrictions and a power shortage further weighed on economic activity.

U.S. Treasury Secretary Janet Yellen said falling gasoline prices may put further downward pressure on headline consumer price inflation for August but there is a lot of uncertainty over the inflation outlook due to Russia's war in Ukraine and energy supplies.

Asian stocks made broad gains on Thursday, extending an overnight global rally, while oil prices steadied at levels not seen since before Russia's invasion of Ukraine.

Oil prices rose on Thursday as the U.S. energy watchdog forecast slightly higher demand and tighter supply going into 2023, although concerns over weakening economic growth kept prices pinned near eight-month lows.