- 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
- Rice praises 'unbelievable' England interim boss Carsley despite uncertainty
- Nepali teenager hailed as hero after climbing world's 8,000m peaks
- England captain Stokes back from injury for second Pakistan Test
- Shanghai stocks gain after stimulus briefing as markets rally
- Shanghai stocks gain after stimulus briefing as Asian markets rally
- South Korea military says 'fully ready' as drone flights anger North
- Pakistan 'vigilantes' behind rise in online blasphemy cases
- Nearly 90, but opera legend Kabaivanska is still calling tune
- Smith experiment as Test opener over, Green out of India series
- With inflation down, ECB eyes faster tempo of rate cuts
- Is life possible on a Jupiter moon? NASA goes to investigate
- Dodgers crush Mets 9-0 in MLB playoff series opener
- South Korea military says 'fully ready' as drone tensions soar
- Cummins back, Marsh and Head out of Pakistan ODI series
- Shanghai stocks swing after stimulus briefing as most of Asia rises
- New Zealand's Latham promises 'no fear' as he takes charge for India Tests
- Kyrgios vows to 'shut up' doubters with December comeback
- Public hearings start into death of Brit by Russian nerve agent
- Ex-Stasi officer faces verdict over 1974 Berlin border killing
- Role of government, poverty research tipped for economics Nobel
- 'Stolen satire' feeds US election misinformation
- Rookie McCarty captures first PGA Tour title in Black Desert Championship
- Australia all-rounder Green ruled out of India Test series
- Seeing double in Nigeria's 'twins capital of the world'
- UK FM to attend EU foreign affairs talks for first time in 2 years
- Carter, Billups among 13 new Basketball Hall of Fame inductees
- Ravens rip Commanders as Lions lose NFL sacks leader in win
- Hezbollah drone strike kills four, wounds dozens at Israeli base
- China says launches military drills around Taiwan
- Stewart leads Liberty past Lynx to level WNBA Finals
- England return to winning ways in Nations League, Austria thrash Norway
- UN chief says attacks on UNIFIL 'may constitute a war crime'
- Ravens outlast Commanders while Bucs batter Saints in NFL
- Dozens hurt in Israel as Hezbollah claims drone strike
- England deserve 'world class' coach: Carsley
- Burkina Faso win to become first qualifiers for 2025 AFCON
- AC Milan's Pulisic among five out for USA match in Mexico
- France's Amandine Henry retires from international football
- Centre-left set to win pro-Ukraine Lithuania's vote
- India's World Cup hopes in Pakistan hands after Australia defeat
- Zelensky says NKorea sending troops to Russian army
- England beat Finland to get back on track
Falling inflation gives equities a boost
A drop in inflation in Europe and the United States sent stocks climbing on Thursday, boosting expectations that the US Fed and ECB may be able to soon cut interest rates, although profit-taking set in on Wall Street.
But oil prices slumped lower after OPEC and its Russia-led allies failed to address expected deeper production cuts as a weak global economy weighs on demand.
A key inflation measure used by the US Federal Reserve to set interest rates eased further last month amid a drop in energy prices, according to government data published on Thursday.
The annual personal consumption expenditures (PCE) price index rose 3.0 percent in October, down 0.4 percentage points from a month earlier, the Commerce Department announced in a statement.
The Fed pays most attention to the so-called core reading that strips out volatile food and energy prices, which slowed to 3.5 percent.
The release will provide welcome news for the Fed, which recently held its key lending rate at a 22-year high as it looks to return inflation firmly to the long-term target of two percent without triggering a damaging recession.
Cutting inflation while avoiding a downturn, commonly known as a "soft landing," is challenging to pull off, but policymakers at the US central bank have sounded increasingly optimistic they can succeed this time around.
Traders had already been predicting a US rate cut in the first half of next year and Thursday's reading should strengthen that sentiment.
Wall Street's main indices climbed at the opening bell, but the S&P 500 and Nasdaq couldn't hold onto gains as profit-taking set in.
"Having already rallied hard off the back of the CPI data a month ago, US stocks responded in muted fashion, but this November will go down as a very solid month for stocks on Wall Street," said Chris Beauchamp, chief market analyst at online trading platform IG.
But Callie Cox at eToro online brokerage urged caution.
"The economy is slowing, and a recession is still a risk," she said. "The market may overlook economic weakness, but smaller, speculative companies could be more vulnerable if anything breaks."
Meanwhile, data released on Thursday showed inflation in the eurozone has hit the lowest level in more than two years.
Consumer prices increased 2.4 percent in November across the 20-nation bloc that shares the euro, the lowest since July 2021.
The data will provide comfort to the European Central Bank, which has paused an unprecedented streak of interest rate hikes aimed at taming red-hot inflation.
The euro retreated against the dollar as the inflation reading raised expectations that the Frankfurt-based ECB could consider cutting rates soon.
"While policymakers have continued to push back against talk of rate cuts, the questions will be impossible to ignore now with markets pricing in one in April and at least four in total next year," said market analyst Craig Erlam at OANDA trading platform.
Separate data showed the economy of eurozone member France contracted slightly in the third quarter, adding to worries about a possible global recession next year.
Europe's main markets finished the day with gains.
- Key figures around 1630 GMT -
New York - Dow: UP 0.9 percent at 35,750.61 points
London - FTSE 100: UP 0.4 percent at 7,453.75 (close)
Paris - CAC 40: UP 0.6 percent at 7,310.77 (close)
Frankfurt - DAX: UP 0.3 percent at 16,215.43 (close)
EURO STOXX 50: UP 0.3 percent at 4,382.47 (close)
Tokyo - Nikkei 225: UP 0.5 percent at 33,486.89 (close)
Hong Kong - Hang Seng Index: UP 0.3 percent at 17,042.88 (close)
Shanghai - Composite: UP 0.3 percent at 3,029.67 (close)
West Texas Intermediate: DOWN 3.5 percent at $75.16 per barrel
Brent North Sea crude: DOWN 0.6 percent at $82.61 per barrel
Euro/dollar: DOWN at $1.0909 from $1.0978 on Wednesday.
Pound/dollar: DOWN at $1.2649 from $1.2698
Dollar/yen: UP at 147.82 yen from 147.22 yen
Euro/pound: UP at 86.26 pence from 86.43 pence
burs/rl/giv
J.Oliveira--AMWN