FTSE up 0.52%; DAX up 0.12%; CAC 40 down 0.26% (Il Sole 24 Ore Radiocor) - London, 12 Aug - European shares closed mostly higher, extending Friday's rebound on growing hopes that concerns over a US recession were overblown after better-than-expected jobless claims data released last week dissipated some concerns about the health of the world's biggest economy.

Investors now await US consumer price index data due on Wednesday for more cues on the Federal Reserve's interest rate path. The reading is expected to show inflation cooled slightly in July.

The market currently sees a 50% chance of the Fed cutting by 50 basis points in September, down from 100% a week ago.

Global stocks dipped last Monday, with the S&P 500 index posting its biggest daily drop since 2022 after weaker-than-expected US nonfarm payrolls data rekindled concerns over the health of the world's biggest economy and the unwinding of the yen carry trade, following a hawkish pivot by the Bank of Japan, added to heightened volatility.

The London FTSE 100 closed up 0.52% at 8,210.25 points, the Frankfurt DAX added 0.12% at 17,723.51 points, the Paris CAC 40 shed 0.26% at 7,250.67 points, while in Milan the FTSE MIB rose 0.46% at 31,928.32 points, and in Madrid the IBEX 35 closed 0.04% higher at 10,642.98 points.

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(RADIOCOR) 12-08-24 18:06:30 (0390) 5 NNNN