Volkswacht Bodensee - Global stocks rise as US inflation data hits forecast

Meanwhile, the European Central Bank held rates steady for a second consecutive meeting, as expected, and raised its forecasts for eurozone growth and inflation this year.

US Labor Department data showed the consumer price index (CPI) picked up to 2.9 percent in August, as economists monitor the impact of President Donald Trump's tariffs on the world's biggest economy.

The figure was in line with analysts' expectations and is seen as unlikely to deter the Fed from cutting interest rates next week.

While inflation is above the Fed's two-percent target, recent weak jobs figures "have strengthened the likelihood of monetary policy easing," said Richard Flax, chief investment officer at European asset manager Moneyfarm.

Data released last week showed that the US economy added only 22,000 jobs in August, while revised figures showed job growth was significantly weaker than previously reported in the year through March.

Separate data released on Thursday showed initial claims for jobless benefits rose by 27,000 to 263,000 last week, the highest level since October 2021.

"The real news of the day sits with the weekly jobless claims," said Art Hogan of B. Riley Wealth Management, who expects the Fed to lower interest rates by 75 basis points by the end of the year.

"That's just more evidence that we're seeing weakness in the labor market," Hogan said. "So, clearly, the Fed's full employment mandate is front and center."

Official figures that showed producer prices falling in the world's biggest economy last month helped reassure analysts that the inflationary effect of the tariffs on consumer prices will be modest and short-lived as well.

"While a 2.9 percent CPI rate is not exactly dovish, the lack of feed-through from tariffs into the CPI report could ease Fed concerns about the future path of inflation," said XTB research director Kathleen Brooks.

"In the aftermath of this report, the dollar has done a 180-degree turn and is lower across the board," and yields on US government bonds have fallen, she added.

Wall Street's three main indices closed at fresh records.

European stocks also held onto gains following the ECB's rate decision.

The bank now expects the eurozone economy to expand by 1.2 percent this year, up from its previous forecast of a 0.9-percent expansion, with inflation to come in at 2.1 percent.

In Asia, the Tokyo stock market hit a record high, helped by a 10-percent surge in the share price of tech investment titan SoftBank.

Oil prices fell Thursday as ample supply of crude helped to offset this week's escalation of tensions in the Middle East and over the Russia-Ukraine war.

The International Energy Agency on Thursday said global oil supply hit a record high in August as the OPEC+ grouping and other countries ramped up production, with a looming surplus keeping prices in check.

- Key figures at around 2015 GMT -

New York - Dow: UP 1.4 percent at 46,108.00 points (close)

New York - S&P 500: UP 0.9 percent at 6,587.47 (close)

New York - Nasdaq Composite: UP 0.7 percent at 22,043.07 (close)

London - FTSE 100: UP 0.8 percent at 9,297.58 (close)

Paris - CAC 40: UP 0.8 percent at 7,283.52 (close)

Frankfurt - DAX: UP 0.3 percent at 23,703.65 (close)

Tokyo - Nikkei 225: UP 1.2 percent at 44,372.50 (close)

Hong Kong - Hang Seng Index: DOWN 0.4 percent at 26,086.32 (close)

Shanghai - Composite: UP 1.7 percent at 3,875.31 (close)

Euro/dollar: UP at $1.1737 from $1.1696 on Wednesday

Pound/dollar: UP at $1.3580 from $1.3528

Dollar/yen: DOWN at 147.18 from 147.40 yen

Euro/pound: DOWN at 86.43 pence from 86.46 pence

Brent North Sea Crude: DOWN 1.7 percent at $66.37 per barrel

West Texas Intermediate: DOWN 2.0 percent at $62.37 per barrel

burs-rl-bys/bgs

F.Wagner--VB