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

European stocks rallied on Thursday as fears of an imminent rise in US interest rates eased after July’s inflation data. The pan-regional Stoxx 600 climbed 0.17% to 660.58 by 08:08 BST, with most regional exchanges in positive territory. US headline consumer price inflation slowed to 3.4% year-on-year from 3.5% in June, reducing the likelihood of a near-term hike, though officials remain cautious due to persistent inflation. Traders also weighed last week’s weak jobs report. Federal Reserve policymakers voted 9-3 to hold rates in the previous month, the first time in a decade three board members dissented. Oil fell after forecasters cut 2026 global demand expectations tied to conflicts involving Iran and Lebanon.