Volkswacht Bodensee - Stocks rise on US inflation data, US-China trade hopes

After solid gains on Asian markets, European indexes showed more modest gains after advances Thursday while Wall Street opened higher.

Investors had keenly awaited a September reading on US inflation, delayed by weeks because the government shut down over a budget impasse, for guidance on further Fed rate cuts.

The core consumer price index increase, which strips out food and petrol prices, came in below expectations at 3.0 percent, the Labor Department said.

Although above the Fed's inflation target of two percent, the reading confirmed to traders that officials are more worried about a softening labour market -- cementing expectations of another 25 basis point cut next week.

"It is the jobs market that is becoming the more pressing issue for the Fed, with a clear chance that the 'low hire, low fire' economy becomes a 'no hire, let's fire' story," ING economists said in a research note.

"We continue to look for a 25 basis point rate cut next week, with a further 25 basis point move in December and 50 basis points of cuts in early 2026," they wrote.

Investors also welcomed a White House confirmation that President Donald Trump would meet China's Xi Jinping next week, stoking optimism for a cooling of trade tensions between the economic superpowers.

"News on trade is supporting risk sentiment across the board into the weekend," said Neil Wilson, UK investor strategist at Saxo Markets.

"But given this is Trump and brinkmanship goes hand in glove with showmanship, talks with Xi could go either way.

"And indeed the trade picture is not so optimistic everywhere we look. The Canadian dollar fell after Trump said he would halt all trade negotiations with the country," Wilson noted.

In Europe, encouraging data on business activity in the eurozone and Britain gave a slight lift but traders said many investors were booking profits heading into the weekend.

Crude futures remained supported after Washington imposed sanctions on two Russian oil giants in a bid to bring an end to the Ukraine war.

Oil prices soared this week on expectations the sanctions would sharply reduce supplies to countries that had continued to buy Russian oil, forcing them to turn to other suppliers.

- Key figures at around 1345 GMT -

New York - Dow: UP 0.8 percent at 47,1154.02 points

New York: S&P 500: UP 0.8 percent at 6,795.04

New York: Nasdaq: UP 1.1 percent at 23,192.99

London - FTSE 100: UP 0.2 percent at 9,598.95

Paris - CAC 40: DOWN 0.2 percent at 8,206.68

Frankfurt - DAX: UP 0.1 percent at 24,218.43

Tokyo - Nikkei 225: UP 1.4 percent at 49,299.65 (close)

Hong Kong - Hang Seng Index: UP 0.7 percent at 25,160.15 (close)

Shanghai - Composite: UP 0.7 percent at 3,950.31 (close)

Euro/dollar: UP at $1.1627 from $1.1615 on Thursday

Pound/dollar: UP at $1.3337 from $1.3323

Dollar/yen: UP at 152.86 from 152.60 yen

Euro/pound: DOWN at 87.17 pence from 87.18 pence

Brent North Sea Crude: UP 0.6 percent at $66.36 per barrel

West Texas Intermediate: UP 0.5 percent at $62.08 per barrel

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H.Kuenzler--VB