HONG KONG stocks look set to open above 10,000 on Monday after a surge in London trading overnight. The Hang Seng London Reference index closed at 10,014 on strong buying as investors became bullish on increased interest rate cut hopes. This followed a big leap in stocks during the day taking the Hang Seng index up 198 points, or more than two per cent, to 9,883. According to data from Jardine Fleming there was a $1.20 rise in the share price of Sun Hung Kai Properties to $63.95. Other property firms also benefitted with Henderson Land rising 30 cents to $49.25. Cheung Kong was up 45 cents to $44.15. Bulls became excited after inflation data for September in the United States showed consumer price rises were slowing. The Dow Jones Industrial average appeared poised to go through a record close of 4,801 last month on the news. It rose, in early trading in New York, to 4,798, up 33 points on the previous close. European markets also benefitted on the news as a wave of optimism overtook fears of a major fall in earnings earlier in the week. The FTSE-100 rose 44.2 points or 1.25 per cent to 3,568 on the back of bullishness on Wall Street infecting dealers and investors in the City of London. The French CAC-40 index rose half a per cent to 1,812.97, the German DAX index rallied 1.79 per cent to 2,196 and the Spanish IBEX 35 index was up 1.67 per cent to 3,326. On Wall Street, Ralph Bloch, senior vice-president and chief market analyst at Raymond James & Associates, said the 'wonderful CPI pushed bonds higher and stocks followed suit'. Shortly before the market opened yesterday, the US Labour Department reported that falling energy prices offset higher food prices in September, limiting the Consumer Price Index to a 0.1 per cent increase. The CPI made a similar rise in August. The core rate of inflation, which excludes food and energy prices, rose 0.2 per cent. Economists had expected a 0.2 per cent rise in both the CPI and the core rate. In a separate announcement it was reported that retail sales rose a seasonally adjusted 0.3 per cent in September as declining car sales offset rising general merchandise and apparel sales. Retail sales climbed 0.5 per cent in August. Economists had estimated a 0.1 per cent rise in September retail sales. A fall in inflation makes a cut in interest rates more likely next month, when the US Federal Reserve Open Market Committee meets to decide on monetary policy.