European stocks rise ahead of Fed

European stocks rose on Wednesday ahead of the Federal Reserve’s interest rate decision later in the day, while British data showing inflation fell more than expected in August helped British stocks outperform their peers in the region.

The European STOXX 600 index rose 0.3 percent after losses for two consecutive sessions, with health care stocks rising about 1 percent by 0709 GMT.

Luxury goods company LVMH shares fell 0.4 percent.

Kering and Moncler shares also fell 0.8 percent and 0.9 percent, respectively.

Investors’ focus will be on the Federal Reserve’s interest rate decision, as the US Central Bank is expected to keep it unchanged.

While the British Financial Times 100 index rose 0.6 percent after annual consumer price inflation unexpectedly declined in August, prompting investors to reduce their bets on raising interest rates by the Bank of England a day before announcing its decision.

Pearson shares fell 4.5 percent after the British education services group said that it had appointed a new CEO starting in early 2024.