Recent comments from Federal Reserve officials have given traders more confidence the central bank will again cut interest rates at its meeting that ends Dec. 10. Traders are betting on a nearly 87% probability that the Fed will cut next month, according to data from CME Group.

The central bank, which has already cut rates twice this year in hopes of shoring up the slowing job market, is facing an increasingly difficult decision on interest rates as inflation rises and the job market slows. Cutting interest rates further could help support the economy as employment weakens, but it could also fuel inflation. The latest round of corporate earnings reports was mostly positive, but economic data has been mixed.

The minutes of the Fed’s most recent meeting in October indicate there are likely to be strong divisions among policymakers about the Fed’s next step.

Treasury yields held mostly steady, with the 10-year yield at 4.01%.

In European trading, Germany’s DAX rose 0.3% as traders awaited inflation data set to be released later in the day.

Britain’s FTSE 100 edged up 0.3% on gains in energy and mining stocks. The CAC 40 in France also rose 0.2%.

In Asia, Japan’s Nikkei 225 closed 0.2% higher to 50,253.91, rebounding from losses earlier in the day. Data showed Japan’s housing starts rose 3.2% in October from the same period a year ago, the first annual increase since March. The number defied market expectations of 5.2% decline and reversed a 7.3% drop in September.

South Korea’s Kospi dropped 1.5% after the country’s industrial production fell 4% month-on-month in October, more than the 1.1% decline in September.