A look at the day ahead in European and global markets from

Kevin Buckland

The verdict from investors appears to be that benign U.S.

inflation trumps the Fed's rate outlook, clearing the way for

gains in Asian equities, and potentially in Europe too.

The initial shock at projections for just one U.S. rate cut

this year despite a very tame CPI reading just hours earlier was

mitigated by Fed Chair Jay Powell's comments that many officials

were on the fence over a second rate cut, and had just tacked an

extra one onto 2025 instead.

With data dependency still the guiding principle, U.S.

producer price readings due later on Thursday will get a lot of

attention, overshadowing European releases such as Spanish

inflation data and euro zone industrial production.

The conclusion of the Fed meeting means policymakers will be

back on the speaking circuit, and New York Fed President John

Williams kicks things off by moderating a discussion with

Treasury Secretary Janet Yellen at an event hosted by the

Economic Club of New York.

Williams has been of the mind - like Powell - that policy is

in a good place to bring inflation steadily down to target.

Political intrigue is likely to stay squarely in the

spotlight in Europe though, with Eric Ciotti asserting he is

still head of France's Republicans despite his ouster over

seeking a deal with the far right.

Embattled President Emmanuel Macron got some veiled

criticism from his Renaissance party too, with his former prime

minister and potential successor Edouard Philippe saying in a

televised interview, "I'm not sure it's entirely healthy for the

president of the republic to run a legislative campaign."

Key developments that could influence markets on Thursday:

- U.S. PPI (May), weekly jobless claims

- Spain final CPI, HICP (May)

- Euro zone industrial production (April)

(Editing by Jacqueline Wong)