The key facts

  • Stoxx Europe 600 rose 0.27% to 658.32 points; the FTSE 100 fell 0.29%
  • US inflation in October was 0.4% month-on-month — above expectations of 0.3%
  • Vodafone cut 3,000 jobs in Europe, saving €200 million

Indices rise and the pound weakens

European stock markets closed higher on Tuesday as falling oil prices raised hopes of easing inflationary pressure. The benchmark Stoxx Europe 600 index gained 0.27% to 658.32 points. Germany's DAX rose 0.31% to 26,347.45 points, France's CAC 40 added 0.55% to 8,278.59, and Italy's FTSE MIB climbed 0.69% to 51,755.08. Britain was the exception: the FTSE 100 fell 0.29% to 10,751.59 points. Meanwhile, the euro weakened 0.6% against the US dollar to 1.115 as of 18:15 GMT.

US inflation and oil

Investors were assessing US inflation data: consumer prices rose 0.4% month-on-month in October, exceeding market expectations of 0.3%. At the same time, oil prices continued to decline on expectations of easing tensions between Washington and Tehran. US President Donald Trump said over the weekend that new American strikes on Iran are highly unlikely as long as progress continues in talks on Tehran's nuclear program and the opening of the Strait of Hormuz. Brent crude futures for January delivery fell below $90 per barrel before recovering to around $92.

Britain: rates and public spending

Bank of England Deputy Governor Clare Lombardelli said her forecast for interest rates is higher than that of other members of the Monetary Policy Committee, and that rates are less restrictive than previously thought. She did not rule out a series of rate hikes, noting that by the central bank's next meeting in mid-December the regulator will have more information. This explains the FTSE 100's underperformance against other European indices that day: the British market reacted separately to the tougher rhetoric on rates. Separately, the German institute ifo reported that the government is channeling more than half of new borrowing through special funds into current spending, including salaries and bills — at the expense of promised long-term investments in bridges, roads and climate projects.

Vodafone cuts staff

British telecom company Vodafone announced the elimination of 3,000 jobs in its European operations between April and September, yielding €200 million in cost savings. The company aims to cut costs by €2 billion by fiscal 2030 and plans to eliminate another 2,300 jobs in Germany, its largest market.