Eurozone CPI contracts on monthly basis

|By:, SA News Editor

As expected, Eurozone CPI dropped 0.1% on month in October vs +0.5% in September.

On year, inflation fell to +0.7% (also in line) vs +1.1% previously.

Core CPI +0.8% vs +1%.

Inflation fell further away from the ECB's target of just under 2%, possibly giving the bank even further room to cut interest rates to zero - although the German's would surely have something to say about that - following the surprise reduction last week to 0.25%. (PR)

EU stocks are mixed heading towards midday following the Yellen-induced rally yesterday, with the EU Stoxx 50 -0.1%, London +0.3%, Paris flat, Frankfurt flat, Milan -0.7% and Madrid -0.1%.

ETFs - Stocks: EZU, VGK, FEZ, EPV, IEV, ADRU, FEP, FDD, UPV, EPV, DFE, FEU, FEEU. Bonds: EU. Euro: FXE, ERO, ULE, URR, EUO, DRR, EUFX