European stocks jumped on Tuesday after below-expected inflation data in the United States boosted bets that the Federal Reserve (US central bank) will reduce the pace of interest rate hikes in the world's largest economy.
The European STOXX 600 Index climbed 1.3 percent, tracking the big gains recorded by global markets after a US Department of Labor report showed consumer prices rose 7.1 percent year-on-year last month, the lowest rise since December 2021.
The latest Inflation Report is the last important data before the US central bank's interest rate decision expected on Wednesday. The reading followed a smaller-than-expected rise in consumer prices in October.
Final data confirmed that consumer prices in Germany rose 11.3 percent year-on-year in November. Prices rose 11.6 percent in October.
Germany's DAX Index gained 1.3 percent.
Meanwhile, EU countries are meeting in Brussels to try to agree on a price cap proposed by the European Commission last month to protect consumers from rising energy costs.
All sectoral indices on the STOXX 600 recorded highs. The index of technology companies, which are highly sensitive to interest rates, increased 3.3 percent and came out on top.
The index of banks rose 1.4 percent, the highest level in about a week.