▸ Trader con­fid­ence over Fed rate cut pushes global stocks to all-time highs

▸ Treas­ur­ies and UK gilts prices rise while dol­lar slips against major rivals

▸ European equit­ies indices advance, also buoyed by US infla­tion data

Global stocks rose to record highs yes­ter­day after Amer­ican infla­tion data gave traders con­fid­ence that the US Fed­eral Reserve will cut interest rates next week.

Wall Street's blue-chip S&P 500 index gained 0.8 per cent by early after­noon in New York and the tech-heavy Nas­daq Com­pos­ite climbed 0.6 per cent.

Both indices were trad­ing at their latest record highs, as was the MSCI All-Coun­try World index, which tracks large and mid­cap stocks across almost 50 developed and emer­ging mar­kets.

Mar­kets were upbeat after US con­sumer price index infla­tion data was released in line with ana­lysts' expect­a­tions, show­ing the rate of infla­tion rising to an annual 2.9 per cent in August.

Des­pite an uptick in the rate from July, investors saw the fig­ure as clear­ing the way for the Fed to cut rates.