European stocks near record highs, dollar gains on rate hike bets
SPY•European stocks held near record highs, while the dollar rose as traders priced in a 12% chance of a 50-basis-point Federal Reserve rate hike in December, up from zero a week earlier. U.S. Treasury yields rose, and Brent crude fell 0.4% to $95.45 a barrel.
1. European shares steady
The STOXX 600 was up less than 0.1% and on track for a weekly gain after reaching a record high in the previous session. The FTSE 100 rose 0.2%, while Germany’s DAX gained less than 0.1%.
2. Dollar and yields rise
The dollar index stood at 103.19 after earlier reaching its highest level since April 2025. Investors raised their bets on a larger-than-expected Federal Reserve rate hike after U.S. inflation data showed food and accommodation costs rising for a third consecutive month and some Fed officials made remarks viewed as hawkish. The U.S. two-year Treasury yield reached a one-month high.
3. Oil heads lower
Brent crude fell 0.4% to $95.45 a barrel, putting it on track for a second weekly decline. Spot gold gained 0.5% to $3,897.36 an ounce.
