Australia

Australian shares are set to open higher, after US stocks rise on cooling inflation data.

ASX futures were up 0.35% or 28 points as of 8:00am on Thursday, suggesting a higher open.

In the US, the S&P 500 edged higher after fresh inflation data all but assured investors the Federal Reserve will cut interest rates next month.

The broad-market index added 0.4% Wednesday, bringing its advance for the year to 14%. The Dow Jones Industrial Average rose 0.6%, or around 240 points. The tech-heavy Nasdaq Composite eked out a slight gain.

In commodity markets, Brent crude oil was down 0.8% to US$80.04 a barrel, while gold was flat at US$2,448.28.

The Australian dollar was at 65.94 US cents, down from its previous close of 65.96.

Asia

Chinese shares ended lower as investors brace for key economic data including retail sales, industrial output and fixed assets investment due on Thursday. Dongfang Electric Corporation dropped 9.9%, the top decliner on the CSI300. Yifeng Pharmacy Chain dropped 4.6%. Meanwhile, Kunlun Tech led the gains, up 4.9% and Foxconn Industrial Internet closed 2.9% higher after its parent company Foxconn released 2Q earnings. The benchmark Shanghai Composite Index closed 0.6% lower at 2,850.65, the Shenzhen Composite Index fell 0.9% and the ChiNext Price Index closed 1.4% lower.

Hong Kong's Hang Seng Index closed 0.35% lower at 17,113.36, ending five straight sessions of gains. Investors are likely awaiting 2Q earnings from Chinese tech giant Tencent due later, Sonija Li, head of retail research at MIB Securities HK writes in a note. Asian markets are also likely consolidating ahead of U.S. CPI data due later, the UOB Global Economics & Markets Research writes in a note. Among decliners, Wuxi Biologics lost 4.3%, WuXi AppTec fell 4.0%, and Hansoh Pharmaceutical Group was 3.7% lower. Among advancers, WH Group surged 8.4% after posting a rise in 1H net profit, Sino Biopharmaceutical rose 2.4% and Chow Tai Fook Jewellery Group gained 1.8%.

Japanese stocks ended higher, led by gains in auto and financial stocks, as hopes grow for the Fed's rate cuts. Honda Motor gained 3.5% and Daiwa Securities Group climbed 3.2%. The Nikkei Stock Average rose 0.6% to 36,442.43. The 10-year Japanese government bond yield fell 3 basis points to 0.810%. Investors are focusing on U.S. inflation data due later in the day and any escalation of conflicts in the Middle East.

Indian shares ended higher, led by tech stocks. HCL Technologies was 2.1% higher, Infosys added 1.4% and Tech Mahindra gained 1.4%. Steel stocks spearheaded the declines, with Tata Steel dropping 1.8% and JSW Steel 1.9% lower. Investors are focusing on India trade data to get more clues on the strength of the economy. The benchmark Sensex index ended 0.2% higher at 79,105.88.

Europe

Stocks in the U.K. rose Wednesday, as the FTSE 100 Index added 0.6% to 8,281.05.

Among large companies, Dowlais Group PLC was the biggest gainer during the session, surging 8.3%, and Genuit Group PLC surged 5.7%. Alpha Group International PLC rounded out the top three movers on Wednesday, as shares surged 5.0%.

Trainline PLC posted the largest decline, falling 2.7%, followed by shares of Balfour Beatty PLC, which fell 2.5%. Shares of Alphawave IP Group PLC fell 1.9%.

In other parts of Europe markets closed higher, with the STOXX Europe 600 Index up 0.5% at 504.10, Germany's DAX rose 0.4% to 17,885.60 and France's CAC 40 added 0.8% to 7,333.36.

North America

The S&P 500 edged higher after fresh inflation data all but assured investors the Federal Reserve will cut interest rates next month.

The broad-market index added 0.4% Wednesday, bringing its advance for the year to 14%. The Dow Jones Industrial Average rose 0.6%, or around 240 points. The tech-heavy Nasdaq Composite eked out a slight gain.

Traders' focus was squarely back on inflation during the session, with the consumer-price index for July showing price gains continuing to cool. The gauge rose 2.9% from a year earlier, the lowest reading since 2021 and slightly below economists' expectations of 3%. A day earlier, a measure of the prices businesses receive for their goods and services also came in below economists' expectations.

It isn't just easing price pressures that have investors convinced a rate cut is in store at the Fed's September meeting. The central bank has a dual mandate to promote stable prices and full employment, and there have been recent signs of weakness in the labor market.

"The data that we've seen, all that is doing is further confirming we're going to get a cut in September," said Alex McGrath, chief investment officer for NorthEnd Private Wealth.

Investors still aren't sure how big that cut will be, and more data on inflation and the labor market are due before the next Fed meeting. Traders in interest-rate futures were placing a 65% chance of a quarter-point cut next month, up from 47% Tuesday, according to CME data. Bets for a bigger half-point cut fell.

In bond markets, the yield on the 10-year Treasury note edged down to 3.821%. That was its fourth straight trading session of declines.

On Thursday, investors will get another look at the economy when retail sales figures are released.

Among individual stocks Wednesday, Kellanova shares jumped 7.8% -- the best-performer in the S&P 500 -- after Mars said it would buy the Pringles maker. Shares for Victoria's Secret climbed 16% after the lingerie retailer tapped Hillary Super, CEO of competitor Savage X Fenty, to be its next chief executive.

Shares of Google parent Alphabet fell 2.3%, weighing on the S&P 500 and the Nasdaq Composite. Bloomberg and the New York Times have reported that Justice Department officials might ask a federal judge to order a breakup of the company. Tesla shares fell 3.1%.

Investors are also keeping close watch on corporate earnings and how consumer spending -- the backbone of the U.S. economy -- is holding up. Home Depot cut its outlook this week, due to homeowners cooling spending. Walmart earnings are due Thursday before the opening bell.