- Top Texas court stays execution of autistic man in 'shaken baby' case
- China posts slowest growth in over a year as property woes drag
- Asian markets swing as China economic growth slows
- Pogba's shadow looms over Juve as revitalised Lazio come to town
- 'Unbelievable' Raphinha leading Barca into tricky triple-header
- In-form Marmoush and Frankfurt hope to tackle history at wounded Leverkusen
- Britain's Lammy in China to 'challenge' Beijing on Russia support
- Manila's car counters help address 'world's worst traffic'
- British racing attendances falling behind, says Qatar Racing's manager
- Rain forces cancellation of opening practice for Australian MotoGP
- Dupont 'beyond surprise' for Toulouse's Kinghorn
- Drought forces Big Tech to rethink thirsty LatAm data centers
- Countries under pressure to fork out for nature at UN conference
- Biden, allies in Berlin to renew Gaza truce call after Hamas leader killed
- Guardians rally to fry Yankees in 10 innings in MLB playoff thriller
- World Bank president focused on job creation ahead of annual meetings
- World Bank chief says lender's climate goals likely safe under Trump
- Japan's core inflation rate slows in September
- Israel PM says killing of Hamas chief 'beginning of the end' of Gaza war
- King Charles set to arrive in Australia for landmark tour
- Nadal defeated by 'animal' Alcaraz in Saudi Arabia as career nears end
- US Supreme Court denies stay of execution to Texas man in 'shaken baby' case
- US charges Indian agent over alleged plot to kill Sikh separatist
- Musk stumps for Trump in key US swing state
- TikTok, Facebook approve ads with US election disinformation, study says
- Purdy and 49ers face Chiefs in Super Bowl rematch
- Kenya deputy president ousted in historic impeachment
- Israel military says Sinwar killed in firefight while tracked by drone
- One Direction members 'devastated' by Liam Payne's death
- Norris shrugs off Red Bull 'trick' of the trade at US Grand Prix
- Global stocks climb as ECB cuts rates and tech rebounds
- Chelsea, Lyon ease to wins in Women's Champions League
- China expected to post slowing growth as economic woes drag
- Yamasaki brings keirin world title home as Japan takes two track golds
- Netflix adds millions of subscribers but growth slows
- 'Deeply misguided' to wall US off with tariffs: Yellen
- Biden farewell visit to Berlin focused on Ukraine, Mideast wars
- EU leaders urge new laws to speed up migrant returns
- Sinwar killing a blow to Hamas but impact on war uncertain
- Mitzi Gaynor, star of 'South Pacific,' dies aged 93
- Trump says Zelensky 'should never have let' Ukraine war start
- Harris woos undecided voters as Trump riles critics over Ukraine
- Hayes turns focus to US women's World Cup goal
- Zelensky seeks EU, NATO backing for 'victory plan'
- Bosch stuns Australia as South Africa reach Women's T20 World Cup final
- What we know about One Direction star Liam Payne's death
- Nicotine pouches rise in popularity as US youth tobacco use hits 25-year-low
- Mendis clinches Sri Lanka series win over West Indies
- Israel says killed Hamas chief Sinwar in Gaza
- Panel urges Secret Service shake-up after Trump assassination bid
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Stocks steady on more positive inflation data
Stock markets steadied on Thursday after new US data suggested that inflation could indeed be slowing in the world's biggest economy, taking the heat off the Federal Reserve to raise rates aggressively.
The US producer price index (PPI) rose by 9.8 percent year-on-year in July, the Labor Department calculated, down from 11.3 percent in June. And on a monthly basis, the index actually fell for the first time in over a year.
Coming after better-than-expected consumer price data the day before, the PPI numbers cheered investors as they suggested that the Fed could begin taking its foot off the pedal somewhat when it comes to raising borrowing costs to dampen inflation, traders said.
Wall Street opened sharply higher on the news, while European markets, which had been in the red earlier in the session, were mostly flat in mid-afternoon trading.
Nevertheless, leading Fed officials have already sought to temper expectations that the monetary policy tightening cycle could be coming to a complete halt.
The head of the Minneapolis Federal Reserve Bank, Neel Kashkari, warned: "We are a long way away from saying that we're anywhere close to declaring victory".
The chief of the Chicago Federal Reserve Bank, Charles Evans, said rates will continue to rise for "the rest of this year and into next year".
"Investors are certainly in a more upbeat mood as the relief from the US inflation data ripples through the markets," said OANDA analyst Craig Erlam.
However, "Fed policymakers remain keen to stress that the tightening cycle is far from done and a policy U-turn early next year is highly unlikely," Erlam said.
After the Fed already raised interest rates by three-quarters of a percentage point twice this year, the financial markets had feared that a further hike of the same magnitude could choke off economic recovery.
"Though the probability of another 75-basis-point hike in September has fallen sharply, the debate about a hike of 50 or 75 basis points will continue, and the Fed will be keen to keep that debate going, until we get the next consumer price inflation and employment reports," said Forex.com analyst Fawad Razaqzada.
Investors will therefore be listening out for further comments from policymakers over the next weeks to better gauge the likely pace of further rate hikes, traders said.
On the oil market, crude prices climbed as US recession fears eased -- but remained around six-month lows and below the levels seen before the Ukraine war.
- Key figures at around 1345 GMT -
New York - Dow: UP 0.7 percent at 33,554.61 points
London - FTSE 100: DOWN 0.5 percent at 7,468.37
Frankfurt - DAX: FLAT at 13,705.29
Paris - CAC 40: FLAT at 6,524.92
EURO STOXX 50: UP 0.1 percent at 3,752.98
Hong Kong - Hang Seng Index: UP 2.4 percent at 20,082.43 (close)
Shanghai - Composite: UP 1.6 percent at 3,281.67 (close)
Tokyo - Nikkei 225: Closed for a holiday
Euro/dollar: UP at $1.0362 from $1.0299 Wednesday
Pound/dollar: DOWN at $1.2247 from $1.2213
Euro/pound: UP at 84.63 pence from 84.29 pence
Dollar/yen: DOWN at 131.92 yen from 132.89 yen
Brent North Sea crude: UP 1.4 percent at $98.73 per barrel
West Texas Intermediate: UP 1.6 percent at $93.43 per barrel
O.Lorenz--BTB