European stocks closed on a bright note on Tuesday with investors reacting positively to U.S. consumer price inflation data that raised optimism about the outlook for interest rates.
UK pay growth eased at a slower than expected pace in the fourth quarter and created a bumpy road ahead for an interest rate cut as the Bank of England awaits more signs of easing in the labor market.
The UK wage growth softened in the three months to November suggesting that the upward inflationary pressures are cooling, and bolsters the case for interest rate cuts by the Bank of England.
The UK wage growth slowed more than expected in three months to October raising expectations that the Bank of England will cut interest rates as early as next June.