European stocks gain as oil prices ease

European stocks mostly rose Thursday as investors welcomed news of easing U.S. inflation, while oil prices fell back from recent gains amid uncertainty over the prospects for the Strait of Hormuz.

London's stock market, however, fell as shares in heavyweight mining companies retreated after copper giant Antofagasta downgraded its production outlook.

The warning offset official data showing that UK economic growth proved resilient in the second quarter despite slowing compared to the first three months of the year.

Asian stock markets closed mixed, with gains led by the technology sector.

The dollar softened, with analysts saying that U.S. consumer inflation data released Wednesday gave the Federal Reserve some breathing room on the timing of interest rate hikes to curb inflation.

"The idea of a delayed Fed rate hike is giving a fresh boost to equity markets," said Ipek Ozkardeskaya, senior analyst at Swissquote.

The consumer price index report for July, which was in line with forecasts, followed figures pointing to a softer US jobs market.

However, with the CPI reading still above the Fed's two-percent target for more than five years -- and with the Iran war keeping oil prices elevated -- Fed official are expected to tighten borrowing costs at some point.

"July marked 65 consecutive months with inflation running above target," said Neil Wilson at Saxo Markets.

"Nevertheless, odds of a rate hike in September were pushed out by the US CPI report," he added.

Expectations that inflation will remain elevated saw an auction of 10-year US Treasuries -- a key guide for interest rates -- result in the highest yield since during the global financial crisis of 2007.

Oil prices shed more than two percent Thursday despite no signs of a deal being struck to end the U.S.-Iran war.

A senior Iranian official said the Strait of Hormuz remained under the control of the Islamic republic after President Donald Trump claimed U.S. control over the strategic waterway.

Wall Street stocks had broadly advanced Wednesday, providing support to Asia on Thursday with tech firms back in favor as concerns ease over their huge AI investments.

Seoul's Kospi jumped 3.6 percent thanks to chipmakers SK hynix and Samsung.

The index had tumbled 40 percent by early August since hitting a record high in June. It has since recovered by about 20 percent.