European equities advanced today, with the STOXX 600 up 0.3%, driven by a sustained fall in global crude oil prices. This occurred despite a hotter-than-expected U.S. CPI report, which showed headline inflation at 0.4% MoM (vs. 0.3% expected) and core CPI at 0.3% MoM (vs. 0.2% expected) .
Key takeaways:
- Oil Relief: Brent crude fell 3% to below $90/barrel, its lowest since early September, providing a 'deflationary wave' .
- Hawkish Fed Bets: U.S. CPI data cemented expectations for a December Fed rate hike, with traders now pricing an 84% probability (up from 74% a week prior) .
- Divergent Reaction: European markets largely looked past the hawkish U.S. macro signals, prioritizing energy price relief .
European shares climb on oil relief, shaking off hot U.S. CPI print
INVESTING.COMNov 10, 5:16 PM UTC
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