Stock markets mostly rose Thursday, as easing US consumer inflation buoyed hopes that the Federal Reserve could announce a big interest-rate cut next month, weighing on the dollar.
Traders reacted also to better-than-expected growth data out of Japan and a slight slowdown to output in Britain.
London’s FTSE 100 stocks index inched higher, approaching the half-way stage, while Paris dipped and Frankfurt also rose.
Asia’s main indices rallied after a similar showing by Wall Street on Wednesday.
“Gains… followed (US) inflation figures which were a smidge lower than anticipated, solidifying expectations the Federal Reserve will cut interest rates at its next opportunity in mid-September,” noted Danni Hewson, head of financial analysis at AJ Bell trading group.
The consumer price index rose 2.9 percent last month from a year ago — its smallest 12-month increase since March 2021.
Following Wednesday’s data, traders were betting that the Fed could cut by as …