Heraldo de Madrid - Stock markets mostly rise as rate hike worries ease

London surged 1.5 percent in midday deals, boosted additionally by data showing UK annual inflation slowed more than expected in June.

"Investors are taking the view that if inflation is on a sustained downward path, then the Bank of England might be less eager to keep pushing up interest rates," Danni Hewson, head of financial analysis at AJ Bell, said following the British update.

"The market is desperate for that pivot moment where central banks call the end to the current rate-rise cycle."

With analysts expecting the Bank of England to now hike less aggressively than thought in the coming months, the pound slid Wednesday versus the dollar and euro.

"Inflation is now much lower than at the start of the year, but June's (inflation) reading is still considerably higher than the Bank of England's two-percent target.

"That means further rate hikes cannot be ruled out," Hewson added.

Another batch of forecast-topping earnings in New York added to the upbeat mood as the corporate earnings season gets under way, though worries over China's growth outlook cast a shadow.

Data last week, showing US inflation continued to fall towards the Fed's target, was among a series of indicators pointing to an economy that was slowing but still in rude health.

Reinforcing that view, the latest US readings showed retail sales rose less than expected in June, though that was offset by an upward revision for May, while industrial output also came in slightly below estimates.

However, traders looked past those figures to focus on news that earnings from Morgan Stanley, Bank of America and Charles Schwab all topped estimates. That came after similarly positive reports from JPMorgan Chase and Wells Fargo.

Markets were looking ahead to the Fed's policy meeting next week, where it is expected to hike rates once again, though the focus will be on its guidance for the future, with analysts debating whether it will hold or announce one more increase to borrowing costs this year.

- Key figures around 1100 GMT -

London - FTSE 100: UP 1.5 percent at 7,567.42 points

Frankfurt - DAX: UP 0.1 percent at 16,146.52

Paris - CAC 40: UP 0.4 percent at 7,349.22

EURO STOXX 50: UP 0.2 percent at 4,379.69

Tokyo - Nikkei 225: UP 1.2 percent at 32,896.03 (close)

Hong Kong - Hang Seng Index: DOWN 0.3 percent at 18,952.31 (close)

Shanghai - Composite: FLAT at 3,198.84 (close)

New York - Dow: UP 1.1 percent at 34,951.93 (close)

Pound/dollar: DOWN at $1.2927 from $1.3040

Euro/pound: UP at 86.82 pence from 86.13 pence

Euro/dollar: DOWN at $1.1219 from $1.1235 on Tuesday

Dollar/yen: UP at 139.93 yen from 138.87 yen

Brent North Sea crude: UP 0.4 percent at $79.94 per barrel

West Texas Intermediate: UP 0.2 percent at $75.92 per barrel

O.Rivas--HdM