CAC 40 is trading down 0.46% at 6502.80

European markets moved higher on Thursday, boosted by strong gains on Wall Street overnight after weaker-than-expected U.S. inflation eased the pressure on the U.S. Federal Reserve to aggressively tighten monetary policy.

As of 04:16 ET (08:16 GMT), the pan-European STOXX 600 was up by 0.16% and the CAC 40 in France climbed 0.19%. Germany’s DAX traded 0.19% in the red, while the FTSE 100 in the U.K. dropped by 0.07%.

The rally in Europe follows a positive lead from major indices in the U.S., with the blue-chip Dow Jones Industrial Average closing up over 500 points, or 1.6%.

These gains stemmed from the headline U.S. consumer price index rising 8.5% year over year in July and was flat compared with June, below the expected increases of 8.7% and 0.2%, raising expectations that the Federal Reserve will hike rates at a slower pace this year.

Investors are now pricing in a 50-basis point hike by the Fed in September, down from earlier expectations of a 75-basis point hike.

The earnings season continued in Europe on Thursday, with Deutsche Telekom AG Na (ETR:DTEGn) in the spotlight after the communications giant lifted its annual outlook for the second time and posted quarterly core profit above estimates on Thursday, supported by an upbeat performance in its U.S. unit T-Mobile. Frankfurt-listed shares in the company rose in early dealmaking.

On technical fronts CAC 40RSI stood at 62.62 and currently it is trading above all MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : CAC 40 – BUY: 6501.80, TARGET: 6564.10, STOP LOSS: 6444.70