LONDON – European stocks rose to a new all-time high on Tuesday and the dollar held firm, as traders reduced their expectations for U.S. Federal Reserve rate cuts and waited for euro zone inflation data to give clues about the European Central Bank’s path.

German consumer prices, harmonised to compare with other European Union countries, had risen by 2.7% year-on-year in February

The price of the oil benchmark Brent peaked at $89 per barrel on Tuesday, nearing levels last seen in June 2022, according to Intercontinental Exchange (ICE) data. Industry experts have attributed the surge to an Israeli airstrike on the Iranian consulate in Damascus and Tehran’s threat of retaliation. 

The Central Bank of Nigeria said it is pegging the minimum capital base for commercial banks with international authorization at $353.32mln

Stocks markets in the Gulf ended higher on Monday, after upbeat China manufacturing data raised optimism about demand in the world’s second largest economy. China’s manufacturing activity expanded at the fastest pace in 13 months in March, with business confidence hitting an 11-month high, a private survey showed on Monday.

Disinflation may require an additional rise in real rates and cutting rates too early could lead to a second wave of inflation