By Sinéad Carew and Marc Jones NEW YORK, LONDON (Reuters) – Stocks reversed course to rally sharply higher after MSCI’s global stock index lurched to a July 2020 low and the dollar gave up strong gains as investors digested a red hot U.S. inflation reading that cemented bets for a big Federal Reserve rate hike next month. Traders initially flipped to safety mode after the U.S Labor Department’s consumer prices index (CPI) report showed headline CPI gaining at 8.2% annually as rents surged by the most since 1990 and the cost of food also rose. Core CPI, which excludes food and fuel prices, beat…