The consumer price index (CPI) slowed to a 0.4% growth last month, while on a yearly basis, it stands at +7.7%, after a gain of 8.2% in September. This is well below than the 0.6% m-o-m and the 8.0% y-o-y increase forecast in a Reuters poll. This signals that the Fed's aggressive rate hikes have been successful and the central bank might be considering easing its monetary policy.

This sentiment was echoed by the Presidents of the Dallas and Philadelphia Fed, who said that the pace of rate hikes has to moderate. The FTSE 100 was up 1.1% at the end of the session.

This morning, the blue-chip index was struggling for direction, after data showed Britain's economy contracted in the third quarter by 0.2%, and is entering a recession.

On the plus side, commodity stocks rose after China eased some of its COVID-19 restrictions.

 

Things to read today:

Trump and Murdoch’s marriage of convenience breaks down after US midterms (Financial Times)

The FTX Crypto Fiasco (WSJ)

The Inflation Cooldown Is Finally Here (WSJ)