European Markets Rebound as US Inflation Figures Align with Expectations
European markets rebounded on Thursday after US inflation figures were in line with expectations, reducing the likelihood of a Federal Reserve rate increase next month. The release of July's Consumer Price Index showed headline inflation rose just 0.1% on a monthly basis and core inflation remained unchanged at 2.5%. This stable data helped restore confidence among investors, who had been cautious following last week's disappointing US employment figures.
The Stoxx Europe 600 Index advanced 0.2%, with major bourses such as the FTSE 100, DAX, and CAC 40 also posting gains. The London FTSE 100 led regional performance with a 0.6% increase, bolstered by encouraging domestic economic figures from the UK.
The British economy expanded 0.4% during the second quarter, matching analyst predictions. This modest growth was primarily driven by robust consumer-oriented service industries and provided flexibility for the Bank of England to maintain its current stance on rate adjustments without responding hastily to recession concerns.