European equities soared to a one-month high boosted by real estate stocks after latest data showed US inflation rose by less than forecast, a reading that reinforces the view that interest rates have peaked.

The Stoxx 600 Index ended the session 1.3% higher, with real estate and luxury stocks leading the gains. The benchmark Treasury 10-year yield fell as much as 21 basis points after the so-called core consumer price index, which excludes food and energy costs, increased 0.2% from September.

Read more: European Property Stocks Hit Eight-Month High After US CPI Data

“I think it sheds light on the disinflation journey,” Amelie Derambure, senior multi-asset portfolio manager at Amundi in Paris said by phone. “It’s a relief because a last hike is not necessary, it’s really good news.”

“Markets really want to play the goldilocks scenario and these numbers are a big support,” she added.

Germany’s DAX Index rose 1.8%, and its futures contracts were on the verge of breaking above a downtrend. In more good news, Germany’s investor outlook improved for a fourth month, signaling that Europe’s biggest economy may be stabilizing as inflation retreats.

Among sectors, basic resources outperformed, as Glencore shares jumped after it agreed to buy a majority stake in Teck Resources Ltd.’s coal business for $6.9 billion. Among other major individual movers, Delivery Hero SE rose after laying out a more optimistic outlook for the year.

Telecoms were among the rare underperforming sectors, dragged down by Vodafone which reported weaker-than-expected profits in core European markets such as Italy and Spain amid high energy costs.

For more on equity markets:

• This Rally Could Do With a Cool Inflation Print: Taking Stock
• M&A Watch Europe: Glencore, Hensoldt, Clariane, Credit Suisse
• Dubai Taxi IPO Hailed to Help Revive New UAE Listings: ECM Watch
• US Stock Futures Unchanged; Azenta Inc Gains
• British Land Beats Property Market Turmoil: The London Rush

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--With assistance from Jan-Patrick Barnert and Kit Rees.