European Stocks Soar on Positive Momentum and Rate Outlook Optimism

European stock markets closed higher as positive global momentum continued, with the Stoxx 600 index ending 0.1% higher. Oil and gas stocks rose despite uncertainty in oil markets due to the Israel-Hamas war, while travel and leisure dropped as multiple airlines suspended flights to Israel. The U.S. Federal Reserve's interest rate hikes are being questioned after dovish remarks from officials, and markets are now predicting a high probability of the Fed holding steady in November and December. European Central Bank officials also reinforced the message that rates may have peaked. The UK economy grew slightly in August, in line with expectations, while the US consumer price index rose more than predicted in September.