Europe midday: Shares hold gains; Oil falls on weak demand outlook

(Sharecast News) - European shares rallied and oil prices fell on Thursday as the odds of an imminent rise in US interest rates receded after July's CPI data.

The pan-regional Stoxx 600 index rose 0.24% to 661.58 at 1147 BST with most regional bourses higher.

US inflation eased in July, with the headline consumer price index slipping to 3.4% yearonyear, down from 3.5% in June, although prices were still higher than before President Donald Trump started his war of choice with Iran.

Combined with a weak jobs report last week, the data dampened the possibility of a rate hike although policymakers are wary of persistent inflation.

Federal Reserve officials last month voted 9-3 to maintain rates - the first time in a decade that three board members shared dissent over a policy decision.

Oil prices fell after forecasters cut back the 2026 global demand outlook, citing the war in Iran and Lebanon. Brent crude was down 1.97% to $87.23 a barrel, while West Texas Intermediate dell 2.11% to $81.51.

On the economics front, eurozone industrial production remained flat in June and was up by 0.2% in the EU, according to flash estimates from Eurostat, the statistical office of the European Union.

In equity news shares in Embracer Group surged as the Swedish video games maker's first quarter results beat estimates.

Reporting by Frank Prenesti for Sharecast.com