Global Markets-Global stocks hold gains after in-line US CPI

Global stocks held on to gains on Wednesday after U.S. inflation data came in as expected, while oil prices edged higher after a senior Iranian official told Reuters there were no discussions with Washington on extending a ceasefire.

The Consumer Price Index edged up 0.1% last month after dropping 0.4% in June, in line with a Reuters poll of economists and analysts. Annual CPI inflation slowed to 3.4% from 3.5% a month earlier.

"Inflation is heading in the right direction for now, and given Federal Reserve Chair Kevin Warsh’s desire not to give much, if any, forward guidance, there should be a fairly sanguine market reaction to these latest figures," said Richard Carter, head of fixed interest research at Quilter Cheviot.

Traders stuck to their bets that narrowly favour an interest rate hold at next month's meeting following the data, with markets giving about a 55% chance that the Fed will keep its policy rate in the current 3.50%-3.75% range.