Algeria's Foreign Ministry said its decision to sever diplomatic relations was prompted by the UAE's increasingly provocative or hostile actions.

PBOC deputy governor Lu Lei said China has no need and no intention to devalue the yuan to secure trade competitiveness. He said upgrading of export structures, stronger corporate pricing power and improved FX risk management have sharply reduced China’s trade sensitivity to the exchange rate. Foreign-trade firms are using more FX hedges and the RMB’s share of trade settlement is rising, further lowering trade’s exchange-rate sensitivity.

Deutsche Bank's Europe chief economist Mark Wall said that despite rising inflation risks, the ECB should be cautious if it intends another rate hike before year-end. The ECB on Thursday lifted its key rate by 25bp to 2.5%. Wall said a December hike currently looks likely but warned a sharp rise in gas prices is creating a negative supply shock that will eventually weigh on growth; the magnitude and timing of the hit are uncertain.