Stock markets rose Wednesday, with Wall Street building on the previous day's record highs after steady US inflation data fuelled hopes that the US Federal Reserve will cut interest rates.

The broad-based S&P 500 index and the tech-heavy Nasdaq extended gains in opening deals after reaching new summits on Tuesday.

Tokyo's Nikkei index followed suit on Wednesday, hitting a record as it closed 1.3 percent higher.

European stock markets were mixed, with London flat while Paris and Frankfurt rose in afternoon trading.

Investors have worried about the impact that US President Donald Trump's tariffs will have on US inflation and the world's biggest economy.

But official figures showed Tuesday that the US consumer price index (CPI) remained steady at 2.7 percent in July, unchanged from June.

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