Global stock markets rose on Thursday as US inflation data that came in as expected reinforced expectations of a Federal Reserve interest rate cut next week.

Meanwhile, the European Central Bank held rates steady for a second consecutive meeting, as expected, and raised its forecasts for eurozone growth and inflation this year.

Labor Department data showed the consumer price index (CPI) picked up to 2.9 percent in August, as President Donald Trump’s tariffs filter through the world’s biggest economy.

The figure was in line with analysts’ expectations and is seen as unlikely to deter the Fed from cutting interest rates next week.

While inflation is above the Fed’s two-percent target, recent weak jobs figures “have strengthened the likelihood of monetary policy easing”, said Richard Flax

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