US Tech Boost Elevates Europe Ahead of ECB Meeting

(Alliance News): London stock prices opened sharply higher on Thursday, buoyed by positive market sentiment ahead of a eurozone interest rate decision. Despite the FTSE 100's struggle on Wednesday, US consumer price inflation data was well-received in New York, fueling an upward trend in tech shares and setting a positive tone for global equities. 
 
The FTSE 100 index jumped 94.89 points, or 1.2%, to stand at 8,288.83, while the FTSE 250 rose by 233.79 points, or 1.1%, to hit a high of 20,771.04, and the AIM All-Share increased by a modest but reassuringly stable.5% (4.01 points), to reach an impressive figure of 742.10. 
 
In European equity markets on Thursday, Paris' CAC40 climbed up.8%, and Frankfurt's DAX40 gained a robust increase of 1.4%. Across the Atlantic Ocean in New York City, the Dow Jones Industrial Average traded at.3% higher than its previous day closing value, while the S&P 500 shot up with an impressive gain of over one percent (1%) and the NASDAQ Composite saw its numbers jump even more significantly at over two percent (2%). 
 
According to data released from the United States Bureau of Labor Statistics (BLS), annual consumer price inflation eased down slightly to reach just under three percent (2.%) this August compared to last month's figures, which stood firm at almost three percent (2.%). This is being considered the softest inflation reading since February earlier this year. 
 
Excluding food and energy sectors from calculations resulted in the core inflation rate remaining constant at above the three percentage point mark, where it has been standing since July of last year, according to the to the FXStreet-cited consensus report published recently. 
 
On a monthly basis, consumer prices showed an increase around two-tenths of a percentage (.02%) during August, matching pace with growth seen in July from June. Core consumer prices rose by three-tenth percent (.03%) on a month-to-month basis, slightly outpacing the consensus prediction of another month of 0.2% growth. 
 
The surge in tech shares had a significant impact on London-listed Scottish Mortgage Investment Trust. The firm, which boasts major US tech shares in its portfolio, saw an increase of 3.2%. 
 
Meanwhile, Asian markets also showed signs of a positive trend as Tokyo's Nikkei225 jumped staggering three and a half percentage points (3.4%), while Hong Kong's Hang Seng Index grew almost one percentage point (.09%). However, the Shanghai Composite Index ended with a marginal loss of around two tenths of a percent (.02%).. 
 
In currency markets, the pound was quoted at USD 1.3045 early Thursday against the previous day closing value of USD 1.3026, and the euro stood flat from late Wednesday at USD 1.1013. Against the yen, the dollar saw upward movement trading at JPY142.88, up from JPY141.58. 
 
Market analysts are expecting the European Central Bank (ECB) to announce a second interest rate cut for this cycle, but they predict that forward guidance will be scarce due to uncertain global economic conditions prevailing currently. 
 
Analysts at Lloyds Bank commented: "On balance, the evidence looks sufficient to expect the ECB's Governing Council to deliver a 25-bp cut in the deposit rate to 3.5% when it meets today." 
 
London-based digital rail ticketing platform Trainline has reported better than expected performance, resulting in the company raising its outlook for future prospects. Revenue during the first half of the of the year ending August 31 climbed sixteen percent (16%), reaching GBP 229 million in net ticket sales amounting to over three billion pounds, indicating a rise thirteen percentage points compared to last year's figures. 
 
Chief Executive Officer Jody Ford said, "As Europe's number one rail app, our strong performance shows how relentless focus innovation is helping more customers choose digital ticketing.". 
 
In other corporate news, cybersecurity firm NCC Group has raised its profit outlook for the four months to September 30 after experiencing better-than-expected performance in their Cyber Security division during this historically quieter trading period of the calendar year. 
 
Brent oil was quoted at USD71.27 a barrel, rising from USD70.32. The price of gold climbed to USD 2,518.83 an ounce from USD 2,512.09. 
 
Abu Dhabi-based provider of self-propelled and self-elevating support vessels for offshore oil, gas,gas and renewable energy projects Gulf Marine revised its adjusted earnings before interest, tax, ,depreciation and amortization outlook reflecting favorable market conditions. 
 
Fevertree stock took a hit as it reported weaker half-year revenue due to subdued consumer backdrops and poor weather across the UK and Europe, but CEO Tim Warrillow remained optimistic about the company's future prospects, stating that they have made a "strong start second half year across all regions.". 
 
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