British News Agency

The pan-European Stoxx 600 traded 0.5 percent lower at 3:25 p.m. London time, with most sectors in negative territory. Europe’s banking index led the losses, down 2.4 percent.

Oil prices jumped 3 percent on the news. International benchmark Brent crude futures with December expiry were last seen 2.6 percent higher at $73.55 per barrel, while U.S. West Texas Intermediate futures rose 2.9 percent to trade at $70.22.

On the data front, eurozone inflation falls below ECB target; preliminary data showed Tuesday that eurozone inflation fell below 2 percent for the first time since mid-2021, likely boosting the chances of another interest rate cut from the European Central Bank.

According to Eurostat, inflation for the 20-country bloc fell to 1.8 percent in September, less than the 1.9 percent forecast by economists and below the 2.2 percent recorded in August.

The regional reading comes after preliminary harmonized German inflation data released on Monday showed the country’s consumer price index eased to 1.8 percent in September, down from 2 percent in August. Last week, preliminary data showed that the harmonized inflation rate in France and Spain also plunged below the ECB’s 2 percent target in September.

Investors also digested comments by Federal Reserve Chair Jerome Powell, who said on Monday that the central bank is “not on any preset course” regarding the next steps for rate policy. He said to expect two more cuts this year — a quarter percentage point each — if the economy performs as anticipated.

Asia-Pacific markets closed mixed on Tuesday, while South Korea, Hong Kong, and mainland China markets closed for a public holiday. Mainland China will be closed for the rest of the week for the Golden Week holiday.