European stocks cut a bullish wave

A two-day recovery in European stocks stalled on Wednesday as investors awaited the outcome of the Federal Reserve’s monetary policy meeting after signs of problems in the banking sector raised hopes that the bank would follow a moderate approach in raising interest rates.

And by 0811 GMT, the European Stoxx 600 index recorded slight gains after a two-day recovery, supported by the rise in banking stocks after a series of support measures were taken to stabilize the sector.

The European banking index rose 0.2 percent, after jumping 5 percent in the previous two sessions, when sentiment was boosted by the Swiss bank UBS’ takeover of Credit Suisse and coordinated actions by central banks to boost liquidity.

The US central bank is expected to raise interest rates by a quarter of a percentage point later on Wednesday.

Ubisoft shares jumped 4.7 percent after HSBC Bank revised its advice on the French video game company’s shares to “buy”.