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Global stocks mixed on tepid US inflation, trade talk hopes

Global stocks were mixed on Thursday,

with Wall Street equities gaining after a tepid inflation report and the

latest conciliatory move between the US and China on trade.

Analysts also said sentiment was boosted by a Turkish decision to hike

interest rates, which boosted the Turkish currency.

In the end, it wasn't the fairly uninteresting updates from the Bank of

England or the ECB, nor a much-needed, and huge, rise in interest rates from

the Central Bank of Turkey, that got the markets moving this Thursday but

rather a disappointing inflation reading from the US, said Spreadex analyst

Connor Campbell.

US consumer price inflation slid to 2.7 percent on an annual basis in

August, from 2.9 percent in July, removing one source of pressure that could

push the Federal Reserve to raise interest rates faster than the gradual pace

it has indicated.

Among major US indices, the tech-rich Nasdaq led the way with a 0.8

percent gain that included a handsome 2.4 percent gain for Apple a day after

it unveiled new iPhone models.

Earlier, markets in Asia started off a rally after the United States

reached out to China for fresh talks in a bid to avert a trade war, providing

some much-needed respite to weary investors.

News that Treasury Secretary Steven Mnuchin had invited top Chinese

officials for talks came just under a week after Donald Trump threatened to

impose tariffs on all $500 billion worth of imports from China.

China's commerce ministry on Thursday welcomed the offer and said the two

sides were discussing details.

Hong Kong's Hang Seng Index jumped 2.5 percent, having fallen for six

straight days and into a bear market, which is a 20 percent drop from its

January record high.

Most other markets in the region followed it higher.

In Europe, London ended the day down 0.4 percent, penalized by a stronger

pound which hurts companies which do most of their business globally and

convert profits back into sterling.

The European Central Bank indicated it planned to continue reducing its

asset purchases, which helped the euro rise against the dollar.

Frankfurt's DAX 30 managed to remain in the green but the CAC 40 in Paris

slid into the red just before the closing bell.

� Turkish delight �

The biggest surprise on Thursday came from Turkey's central bank, which

announced a massive rate hike to battle soaring inflation and boost the lira,

prompting the embattled currency to surge in value.

The central bank hiked the one week repo auction rate 625 basis points

from 17.75 percent to 24 percent, significantly higher than the Bloomberg

consensus of 21 percent.

The lira reacted strongly to the decision, rising by five percent in value

to 6.0 lira to the US dollar. It later shed some of those gains but was still

up over 4.1 percent in value at 6.08 to the dollar.

Crude oil prices tumbled as Hurricane Florence weakened on its approach

towards the US east coast, reducing the risk of damage and disruption to oil

installations.

Traders also focused on the International Energy Agency announcement that

global oil output hit a record of 100 million barrels per day in August,

providing some relief from concerns about supplies as exports from Iran and

Venezuela decline.

� Key figures around 2100 GMT �

New York � Dow Jones: UP 0.6 percent at 26,145.99 (close)

New York � S&P 500: UP 0.5 percent at 2,904.18 (close)

New York � Nasdaq: UP 0.8 percent at 8,013.71 (close)

London � FTSE 100: DOWN 0.4 percent at 7,281.57 (close)

Frankfurt � DAX 30: UP 0.2 percent at 12,055.55 (close)

Paris � CAC 40: DOWN 0.1 percent at 5,328.12 (close)

EURO STOXX 50: UP 0.2 percent at 3,333.68 (close)

Tokyo � Nikkei 225: UP 1.0 percent at 22,821.32 (close)

Hong Kong � Hang Seng: UP 2.5 percent at 27,014.49 (close)

Shanghai � Composite: UP 1.2 percent at 2,686.58 (close)

Euro/dollar: UP at $1.1689 from $1.1626 at 2100 GMT

Pound/dollar: UP at $1.3105 from $1.3045

Dollar/yen: UP at 111.94 yen from 111.26 yen

Oil � Brent Crude: DOWN $1.56 at $78.18 per barrel

Oil � West Texas Intermediate: DOWN $1.78 at $68.59 per barrel

Source: Bangladesh Sangbad Sangstha (BSS)