Portugal Colonial - Oil prices rise ahead of US-Russia summit as stocks digest inflation data

After a negative start, major US indices worked their way back up to even following July wholesale price data.

The producer price index rose 0.9 percent on a month-on-month basis, much greater than analysts expected following benign consumer pricing data earlier this week.

"The large spike in the Producer Price Index (PPI) this morning shows inflation is coursing through the economy, even if it hasn't been felt by consumers yet," said Chris Zaccarelli, chief investment officer for US-based Northlight Asset Management.

Zaccarelli called the report a "most unwelcome surprise," adding that it is "likely to unwind some of the optimism of a 'guaranteed' rate cut next month" from the Federal Reserve.

However, futures markets still were betting on a quarter point interest rate decrease, but the PPI data likely means a large half-point rate cut is "off the table," said Jack Ablin of Cresset Capital Management.

All three major US indices finished within 0.1 percent of their start points.

In Europe, the main markets in Paris, Frankfurt and London registered positive figures by the close of trading.

London rallied back into the green from an earlier slump as data showed the UK economy had slowed in the second quarter -- though less than feared -- as Trump's tariffs came into effect.

Meanwhile, oil prices finished up around two percent as traders nervously awaited US President Donald Trump's summit with Russian President Vladimir Putin amid fears by European leaders that Putin will cajole Trump into a settlement imposed on Ukraine.

But oil traders are worried about a different outcome: "that if the meeting doesn't go well, we'll see stronger sanctions on Russian oil thereby depriving the world of or making it much difficult for this oil to get to the market," said Stephen Schork of the Schork Group.

The market is "very nervous," Schork added.

Among individual companies, Intel surged 7.4 percent following a Bloomberg News report that Trump is considering an investment in the beleaguered chip company in exchange for a government stake.

Such a deal would represent Trump's latest departure from the US government's traditional laissez-faire posture towards business.

- Key figures at around 2030 GMT -

New York - Dow: DOWN less than 0.1 percent at 44,911.26 (close)

New York - S&P 500: UP less than 0.1 percent at 6,468.54 (close)

New York - Nasdaq: DOWN FLAT at 21,710.67 (close)

London - FTSE 100: UP 0.1 percent at 9,177.24 (close)

Paris - CAC 40: UP 0.8 percent at 7,870.34 (close)

Frankfurt - DAX: UP 0.8 percent at 24,377.50 (close)

Tokyo - Nikkei 225: DOWN 1.5 percent at 42,649.26 (close)

Hong Kong - Hang Seng Index: DOWN 0.5 percent at 25,489.59 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,666.44 (close)

Euro/dollar: DOWN at $1.1657 from $1.1705 on Wednesday

Pound/dollar: DOWN at $1.3535 from $1.3576

Dollar/yen: UP at 147.76 yen from 147.38 yen

Euro/pound: DOWN at 86.05 pence from 86.21 pence

Brent North Sea Crude: UP 1.8 percent at $66.84 per barrel

West Texas Intermediate: UP 2.1 percent at $63.96 per barrel

burs-jmb/jgc

M.Carneiro--PC