European Markets React to Norges Bank Decision and UK GDP Data

Norges Bank's recent decision has been met with a slightly less hawkish tone compared to previous statements, but still retains its cautious outlook on inflation and interest rates. The bank acknowledged 'welcome' downside surprises in inflation data while reserving judgment on whether this will impact the need for further rate hikes.

The Norwegian krone (NOK) is off by a slight margin following the decision, with the EUR/NOK exchange rate up around 30 pips. Meanwhile, oil prices are down $1.5 due to the slightly weaker NOK.

On the other side of the Atlantic, the UK's GDP data for June showed a better-than-expected growth rate of 0.3% month-over-month, although this still leaves Q2 at 0.4% quarterly growth in line with consensus. The EUR/GBP exchange rate remains broadly flat.

The Asia session saw regional equities outperforming their US peers due to optimism, with Korean and Japanese equities leading the charge. However, US equities are performing individually without any fundamentally changing headlines.