Global markets rise as Trump weighs future of US Fed boss

A jump in US retail sales boosted world markets on Thursday even as investors mulled the US rates outlook, US President Donald Trump's tariffs and the future of Federal Reserve boss Jerome Powell.

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US indices were near record highs two hours into the Wall Street session with all eyes on an incoming earnings reports, notably for streaming giant Netflix.

More than two hours in, the Dow Jones Industrial Average and the broad-based S&P 500 boasted gains of close on 0.5 percent while the tech-rich Nasdaq Composite Index advanced 0.8 percent.

The rises came on the back of a better-than-expected US retail sales report and a round of mostly solid corporate earnings.

European markets were strongly in the green. Frankfurt and Paris closed almost 1.5 percent ahead although London could only manage a 0.5 percent rise amid a higher official UK jobless count and slowing wages growth.

Market observers have been carefully watching reports that US President Donald Trump, fresh from unveiling new tariff threats, could sack Powell.

Overall, US retail sales were up 0.6 percent in June to $720.1 billion, reversing a May 0.9 percent decline. The figures topped analyst expectations.

Besides retail sales, another week of modest weekly US jobless claims provided reassurance on the economy, said Art Hogan of B. Riley Wealth Management.

"We've been worried about earnings and trade wars, but the economic data (...) remains resilient," Hogan said.