All cleared for a soft landing?

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Summer ended green
The three major U.S. indexes climbed Friday, making August another month in the green for them, despite the sharp sell-off at the start of the month. The pan-European Stoxx 600 rose 0.09% on Friday, ending August around 1.3% higher to give it a record high closing level.

Softer-than-expected core inflation
The U.S. personal consumption expenditure price index for July inched up 0.2% on the month and was 2.5% higher from a year ago. Those figures are right on track with estimates. Core PCE, which excludes volatile food and energy prices, were up 0.2% in July and 2.6% from a year earlier, with the latter value 10 basis points lower than expected.

Chinese markets in the red
China’s two largest indexes, the Shanghai Composite and the Shenzhen Composite, are in the red for 2024 so far – and haven’t done well since the country opened up after Covid. To boost sentiment, the Chinese government needs to introduce fiscal support and boost consumer spending, said KraneShares Chief Investment Officer Brendan Ahern.

Happy Birthday, Mr. Buffett
Legendary investor Warren Buffett turned 94 on Friday. As if commemorating the occasion, Buffet’s sprawling conglomerate Berkshire Hathaway became the first nontechnology company to hit a $1 trillion market capitalization on Wednesday. Meanwhile, Buffett last week sold 21.1 million shares of Bank of America, adding $6 billion to Berkshire’s cash pile.

[PRO] Action-packed September
It’s going to be a packed month ahead, CNBC Pro’s Yun Li notes. The U.S. Federal Reserve will have its policy meeting on Sept 17-18, where market watchers expect the Fed to cut interest rates. Before that, however, August nonfarm payrolls will be out Sept. 6, and consumer and producer price indexes just a few days later.

The plane encountered some turbulence earlier in the month, but the skies are looking calmer now, increasing the odds for a soft landing.

It’s undeniable that July’s jobs report was bad. Panic spread. Goldman Sachs raised its forecast for the U.S. to enter a recession in the next 12 months to 25% from 10%.

But, with the benefit of hindsight, it seems such panic seems overblown. The PCE index came in exactly as anticipated, meaning that inflation is continuing its controlled descent. More significantly, the report said consumer spending rose 0.5%. Even though that number didn’t deviate from expectations, it signals the U.S. economy – which is largely a consumer economy – is going strong.

That’s reflected in a sterling earnings season for the second quarter. The S&P 500…