European major indices close higher. Encouraged by the weaker UK inflation data today. | Forexlive

The major European stock indices are closing higher on the day. The indices are encouraged by the lower than expected UK CPI inflation data today. That has traders paring back expectations for the BOE rate hike tomorrow. The expectations are now 50-50 for a rate hike.

The final numbers are showing:

• German DaX +110.66 points or 0.71%
• Frances CAC +50.01 points or 0.69%
• UK’s FTSE 100 +76.43.4 +1.00%
• Spain’s Ibex +124.28 points or +1.30%
• Italy’s FTSE MIB +501 points or +1.75%

UK 10 year yields are trading down -12 basis points at 4.22%, while German 10 year yields are down around 5 basis points at 2.70%.

Looking at the forex market, the AUD and the NZD remain the strongest of the major currencies, while the USD is now the weakest just ahead of the GBP.