Markets fall, central banks expected “to remain supportive of growth”

Markets were mostly lower on Friday.

The S&P 500 fell 0.8 percent, the STOXX Europe 600 fell 0.3 percent. However, the Nikkei 225 jumped 1.2 percent.

A report on Friday showed that US producer prices jumped 8.3 percent in August from a year ago.

“Investors are wringing their hands over growth but are seeing higher inflation at the same time,” noted Jack Ablin, Cresset Capital Management’s founding partner and CIO.

Still, Mark Haefele, UBS Global Wealth Management chief investment officer, said: “We expect major central banks to remain supportive of growth, keeping rates lower for longer. This is positive for equity markets, particularly cyclical and value areas of the market.”

In Europe, HSBC economists Simon Wells and Fabio Balboni suggested that “the relatively dovish upward revision to the inflation forecast should reassure markets that more support is coming” from the European Central Bank.

“Ultimately, we see stocks finishing September strongly,” wrote Fundstrat’s Tom Lee in a note.