US open: Stocks gain after US inflation and housing starts data
US stocks advanced as reports showed inflation slowed and housing starts rose.
US inflation climbed 2% year-on-year in July, in line with expectations, after rising 2.1% in June. Consumer prices increased 0.1% in July when compared to a month ago, as forecast, following a 0.3% increase. Excluding food and energy, prices rose 1.9% year-on-year and 0.1% month-on-month.
"The recent slowdown in the pace at which core consumer prices are rising eases some of the pressure on the [Federal Reserve] to start considering increasing interest rates, although only temporarily," said Capital Economics.
On Wednesday the Fed is due to release minutes from its 29-30 July policy meeting, which may provide further clues on the timing of the first rate hike.
Meanwhile, US housing starts jumped 15.7% in July after falling 4% a month before, surpassing analysts' estimates for an 8.1% gain.
Barclays Research said it viewed the data as "more evidence that the moderate recovery in housing activity is back on track after the disruption in recent months caused by higher mortgage rates and adverse winter weather".
Also providing a lift to global stocks was a cooling of tensions in Ukraine and Israel.
A ceasefire between Palestine and Israel has been extended by 24 hours in an attempt to reach a truce while Russia sent further aid to Ukraine.
Home Depot, Elizabeth Arden
Home Depot rallied after reporting second quarter earnings that topped analysts' estimates.
Elizabeth Arden slumped after saying fall in sales of celebrity fragrances was lower than expected in the fourth quarter.
Aeropostale edged higher after saying Julian Geiger has returned as chief executive.
The US 10-year yield fell one basis point to 2.38%.
West Texas Intermediate crude futures dropped 0.57% to $95.86 per barrel, according to the ICE.
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