GLOBAL MARKETS - Dow Surpasses 40,000, World Stocks Hit Record Amid Rate Cut Hopes

GLOBAL MARKET - NEW YORK, May 16 (Reuters) - The Dow Jones industrial average crossed the 40,000 level on Thursday for the first time and a world stock index scored a third straight record intraday high on hopes of U.S. interest rate cuts and strong earnings before stocks turned mostly flat in afternoon trading.

Data on Wednesday showed cooling consumer price inflation, although that was offset on Thursday by news that U.S. jobless claims fell in the latest week and by figures showing U.S. import prices increased 0.9% last month.