(Bloomberg) -- European property stocks rose to an eight-month high after data showing a cooling in US inflation cemented views that interest rates have peaked.

The Stoxx 600 Real Estate index — which tracks firms like France-listed shopping mall group Unibail-Rodamco-Westfield, German residential and commercial landlord LEG Immobilien SE and UK office building owner British Land Co. Plc — rose as much as 5.6% Tuesday as US inflation broadly slowed in October, adding to optimism that the US Federal Reserve may be done raising interest rates. 

US Treasury yields plunged as a slower-than-anticipated pace of consumer price growth last month bolstered the view that the Federal Reserve’s most aggressive interest-rate hiking cycle in decades is over. That fueled hopes of easing balance sheet pressures in the heavily-indebted sector.

Earlier this month the real estate index had its biggest-ever weekly jump following upbeat comments on inflation from central bankers. Still, even after the recent bounce, the benchmark remains 40% below its 2020 high, hurt by concern over debt-servicing costs and slumping property valuations.

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