European Stocks End Mostly Higher as Iran Hopes Beat Hot US Inflation

European equities finished Tuesday mostly higher, with banks and technology names doing the heavy lifting. Falling crude prices and signs of easing friction between Washington and Tehran pulled buyers off the sidelines. Then US inflation landed hotter than expected, and the rally gave back some ground as traders leaned harder into a December Federal Reserve rate hike.

Frankfurt's DAX climbed 0.44%, helped by Henkel VZO, which rose 3.63%. In Paris, the CAC 40 gained 0.71%, with ArcelorMittal up 2.85%. The Euro Stoxx 50 added 0.84% as Ahold Delhaize advanced 2.84%. London's FTSE 100 sat flat.

Currency markets told a different story. The euro slid 0.66% against the dollar and was changing hands at $1.11477 at 5:28 pm CET. Sterling fell 0.90% versus the greenback, trading at $1.33210.

The session's mood swung on two forces pulling in opposite directions: cheaper oil and the prospect of calmer US-Iran relations on one side, and the inflation reading on the other. The hotter print hardened bets that the Fed moves again in December, capping how far Europe's indexes could run.