Europe open: Shares rally as US rate rise fears ease for now

(Sharecast News) - European shares rallied on Thursday as the odds of an imminent rise in US interest rates receded after July's CPI data. The pan-regional Stoxx 600 index rose 0.17% to 660.58 at 0808 BST with most regional bourses higher.

US inflation eased in July, with the headline consumer price index slipping to 3.4% year‑on‑year, down from 3.5% in June, although prices were still higher than before President Donald Trump started his war of choice with Iran.

Combined with a weak jobs report last week, the data dampened the possibility of a rate hike although policymakers are wary of persistent inflation.

Federal Reserve officials last month voted 9-3 to maintain rates - the first time in a decade that three board members shared dissent over a policy decision.

Oil prices fell after forecasters cut back the 2026 global demand outlook, citing the war in Iran and Lebanon. Brent crude was down 0.48% to $88 a barrel, while West Texas Intermediate dell 0.53% to $82.83.

In equity news shares in Embracer Group surged as the Swedish video games maker's first quarter results beat estimates.

Reporting by Frank Prenesti for Sharecast.com