- Nigeria refuse to play in Libya as Algeria, Cameroon qualify
- Strike-hit Boeing leaves experts puzzled by strategy
- Leweling rockets Germany past Dutch and into Nations League quarterfinals
- Kolo Muani double fires France to win in Belgium
- Italy sweep past Israel in Nations League amid high security
- UN peacekeepers to 'stay in all positions' in Lebanon
- NASA launches probe to study if life possible on icy Jupiter moon
- 'Unique' Ronaldo an example to everyone, says Martinez
- New lawsuits against Sean Combs allege sex assault, including of minor
- Italy begins migrant transfers to Albania with first group of 16
- Google signs nuclear power deal with startup Kairos
- Carsley open to foreign England manager amid Guardiola links
- Pogba hungry to have his football cake after doping ban
- India and Canada expel top envoys in Sikh separatist killing row
- Mbappe says victim of 'fake news' after 'rape' report in Sweden
- Lebanon says 21 killed in strike on northern village
- Netanyahu vows no mercy after deadly Hezbollah drone strike
- Russia could be able to attack NATO by 2030: German intelligence
- EVs seek to regain sales momentum at Paris Motor Show
- Clarke backs Scotland to bounce back from 'tough' run
- Harris, Trump target crucial Pennsylvania as US vote looms
- NASA probe Europa Clipper lifts off for Jupiter's icy moon
- Lebanese Red Cross says 18 killed in strike in north
- Mendy borrowed money from Man City team-mates for legal fees
- Palestinian officials say Israeli forces kill two in West Bank
- Football leagues, unions file EU complaint against FIFA in calendar dispute
- Nigeria boycott AFCON qualifier in Libya after 'inhumane treatment'
- India to recall top envoy to Canada: foreign ministry
- Hezbollah, Israeli troops in 'violent clashes' after drone strike
- China insists won't renounce 'use of force' to take Taiwan as drills end
- Painkiller sale plan to US gives France major headache
- Italy begins landmark migrant transfers to Albania
- Russia jails French researcher for three years
- 'Unsustainable' housing crisis bedevils Spain's socialist govt
- Stocks shrug off China disappointment but oil slides
- New Zealand 4-0 up in America's Cup but British show signs of life
- Russian prosecutor demands 3 years prison for French researcher
- 'Innocent' British nerve agent victim caught in global murder plot: inquiry
- Afghan Taliban vow to implement media ban on images of living things
- Russian prosecutor demands 3 years, 3 months jail for French researcher
- England ready for Pakistan's spin assault in second Test
- New Zealand's Ravindra excited for India Tests with father in crowd
- India's capital bans fireworks to curb air pollution
- Stocks diverge, oil retreats as China disappoints markets
- FIFA to open 'global dialogue' on transfer system after Diarra ruling
- Trio wins economics Nobel for work on wealth inequality
- Starmer vows to cut red tape as he urges foreign investors to 'back' UK
- Ex-Stasi officer jailed over 1974 Berlin border killing
- 'Not viable': Barcelona turns against surging tourism
- Hezbollah says targeted Israeli naval base after deadly drone strike
US, European stocks extend gains on interest rate outlook
Stock markets rose for a second day Wednesday after slowing US inflation and retail sales raised hopes of a soft landing for the US economy.
European stocks gained further and Wall Street was higher midway through its session after some indices Tuesday had their best increases in six months, lifted by evidence the Federal Reserve may no longer need to pursue its monetary tightening.
Markets bounced after data showed consumer price inflation slowed sharper than expected to 3.2 percent in October.
A second gauge of inflation, the Producer Price Index, showed Wednesday that wholesale prices unexpectedly fell 0.5 percent in October, its steepest drop since April 2020.
A small 0.1 percent decline in US retail sales in October further helped underpin expectations of a soft landing.
"Better US PPI and retail sales figures have piled on the good news, helping equities around the globe to extend their gains," said Chris Beauchamp, chief market analyst at online trading platform IG.
"Investors continue to rejoice in the hope of no more Fed rate hikes. Overall the skies have cleared dramatically, and hopes of a soft landing and improved earnings have driven flows back into stocks."
US stocks were also boosted by better-than-expected results from bellwether retailer Target.
Several Fed officials have lined up in recent months to warn that while inflation has come down from the multi-decade peaks of last year, it remained too high to give up on their rate-hike campaign for fear of prices reflating.
Some analysts warned that markets may be getting ahead of themselves.
"The markets do appear a little overbought after a sharp three-week rally, especially the tech-heavy Nasdaq, so there is a risk of a short-term pullback," said Fawad Razaqzada, market analyst at StoneX.
"But with so many resistance levels having broken down, any potential short-term weakness should not be confused with a bearish reversal, unless the Fed starts to push back against rate cut expectations forcefully."
Jamie Dimon, the head of JPMorgan Chase, said that while Tuesday's figures were good, he thought inflation was a little more sticky than they showed.
"I still think you should prepare (for the fact the Fed) may need to do a little bit more," he told Bloomberg.
- Relieving the pressure -
London extended Tuesday's rally after data showed UK inflation slowed sharply in October. The CPI hit 4.6 percent, well down from 6.7 percent in September and also slightly better than expectations.
The pound weakened against the dollar, paring the gains enjoyed after the US inflation reading.
"UK inflation has slowed sharply, relieving the pressure on the Bank of England to hike rates again," said IG's Beauchamp.
"While bank stocks will have to get used to a world without a steady rise in interest income, the prospect of easing pressures on the UK economy continues to support bank stocks, which made further headway this afternoon."
The dollar clawed back some ground after slumping Tuesday, especially against the yen on news that Japan's economy shrank more than forecast in the third quarter.
The greenback has lost almost two cents against the euro this week, and has also dropped significantly against the South Korean won, Australian dollar and South African rand.
- Key figures around 1645 GMT -
New York - Dow: UP 0.2 percent at 34,914.44 points
London - FTSE 100: UP 0.6 percent at 7,486.91 (close)
Paris - CAC 40: UP 0.3 percent at 7,209.61 (close)
Frankfurt - DAX: UP 0.9 percent at 15,748.17 (close)
Tokyo - Nikkei 225: UP 2.5 percent at 33,519.70 (close)
Hong Kong - Hang Seng Index: UP 3.9 percent at 18,079.00 (close)
Shanghai - Composite: UP 0.6 percent at 3,072.83 (close)
Dollar/yen: UP at 151.04 from 150.37 yen on Tuesday
Pound/dollar: DOWN at $1.2430 from $1.2496
Euro/dollar: DOWN at $1.0854 from $1.0880
Euro/pound: UP at 87.29 pence from 87.05 pence
West Texas Intermediate: DOWN 1.69 percent at $76.94 per barrel
Brent North Sea crude: DOWN 1.2 percent at $81.47 per barrel
burs-gv/lth
F.Bennett--AMWN