Coin Press - Stocks climb tracking inflation, growth data

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Stocks climb tracking inflation, growth data
Stocks climb tracking inflation, growth data / Photo: Ben Stansall - AFP

Stocks climb tracking inflation, growth data

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.

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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 much as 50 basis points at its next monetary policy meeting in September.

"The current buzz isn't about whether the Fed will trim rates... but how deep they'll dig into the cuts," analyst Stephen Innes said in his Dark Side Of The Boom newsletter.

Markets were also digesting positive growth figures from Japan -- with the world's fourth-largest economy reporting a better-than-expected GDP rise of 0.8 percent for the second quarter.

Data out of China showed the country's industrial production slowing and unemployment rising in July.

Consumer spending marginally beat analyst expectations.

In Britain, the Bank of England is expected to cut interest rates further after the nation's economic output slowed slightly in the second quarter, official figures showed Thursday.

- Key figures around 1030 GMT -

London - FTSE 100: UP 0.1 percent at 8,284.63 points

Paris - CAC 40: DOWN 0.1 percent at 7,326.20

Frankfurt - DAX: UP 0.2 percent at 17,927.47

EURO STOXX 50: UP 0.1 percent at 4,732.98

Tokyo - Nikkei 225: UP 0.8 percent at 36,726.64 (close)

Hong Kong - Hang Seng Index: FLAT at 17,109.14 (close)

Shanghai - Composite: UP 1.0 percent at 2,877.36 (close)

New York - Dow: UP 0.6 percent at 40,008.39 points (close)

Euro/dollar: UP at 1.1014 from $1.1012 on Wednesday

Pound/dollar: UP at $1.2855 from $1.2829

Dollar/yen: DOWN at 147.27 yen from 147.43 yen

Euro/pound: DOWN at 85.67 pence from 85.83 pence

Brent North Sea Crude: UP 0.7 percent at $80.30 per barrel

West Texas Intermediate: UP 0.6 percent at $77.45 per barrel

A.Leibowitz--CPN