Stock markets rose on Tuesday as US inflation data showed a still-subdued impact from US President Donald Trump's tariffs.

That, combined with Trump extending by 90 days a trade truce with China, cheered investors.

New York jumped after the US consumer price index (CPI) reading for July showed annualised inflation at 2.7 percent, unchanged from a month earlier.

European markets were likewise boosted by the US reading, with all but Frankfurt rising.

While the headline CPI figure was lower than expected, underlying price increases indicated that Trump's tariffs were nevertheless starting to ripple through the US economy.

Core inflation, which strips out volatile costs such as food and energy, accelerated in July to the fastest pace in six months.

"Clearly, this is good news for a US ec

See Full Page