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

Satoshi Sugiyama

For all the anticipation, Wednesday's U.S. CPI data was largely

in line with expectations, perhaps even a little anticlimactic.

Coupled with softer-than-expected July nonfarm payrolls, it has

dampened money-market bets on a September Federal Reserve rate

hike.

In contrast, Thursday's Japanese wholesale inflation data

reinforced expectations for a September rate hike by the Bank of

Japan.

The 7.2% year-on-year rise in July suggested that price

pressures remain alive and resilient, driven in part by strong

demand induced by the AI boom and higher raw-material costs from

the Middle East war.

Asian stocks were mostly firm in the morning session, with South

Korean shares hitting their highest levels in three weeks on

chip stocks.

MSCI's broadest index of Asia-Pacific shares outside Japan

was up nearly 1%, while Japan's Nikkei

rose 1.61% as of the midday recess.

In early European trades, the pan-region Euro Stoxx 50

futures rose 0.35%, German DAX futures were up

0.26% and FTSE futures edged 0.27% higher.

Oil prices fell after forecasters scaled back this year's global

demand outlook, citing the broader fallout from the Middle East

war.

United States and Iran remained deadlocked over efforts to end

the conflict, with conflicting claims about control over the

vital Strait of Hormuz.

U.S. crude shed 1.3% to $82.19 a barrel and Brent

eased to $87.95 per barrel, down 1.16%.

In Sydney, Reserve Bank of Australia Assistant Governor

Christopher Kent warned of the risk of further policy tightening

at a Reuters NEXT Newsmaker event, saying inflation threats

remain on the upside and "a lot of things" would need to go

right to avert another rate hike.

Key developments that could influence markets on Thursday:

- UK April-June quarter, June GDP

- Euro zone, UK June industrial production

- U.S. weekly jobless claims