Stocks climb tracking inflation, growth data [Video]

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 …