Limited movements for European stocks ahead of The Fed decision

On Wednesday, European stocks navigated within a narrow range as investors exercised caution in making riskier bets ahead of the Federal Reserve’s decision on interest rates and the future trajectory of monetary policy.

The European STOXX 600 index recorded a slight increase of 0.1 percent by 0810 GMT. This modest rise was supported by gains in the real estate and technology sectors, which are particularly sensitive to interest rate movements. Conversely, shares of energy companies faced declines due to the drop in oil prices.

Investors are anticipating that the US Federal Reserve will maintain interest rates at their current levels, as Tuesday’s release of US inflation data did not significantly alter expectations for interest rate cuts in the coming year.

The focus now shifts to the statements of US Federal Reserve Chairman Jerome Powell and short-term interest rate expectations, with investors keen to discern indicators of the potential timing for monetary policy easing.

Entain Betting and Gambling shares surged by 4.6 percent following the announcement of the immediate departure of the company’s CEO.

German chemical giant BASF witnessed a 3.2 percent increase in its shares after UBS upgraded its recommendation for the company’s stock from sell to buy. This uplifted the chemical sector by approximately 1 percent.

On the downside, LVMH shares experienced a 1 percent loss after JP Morgan downgraded its recommendation to buy shares of the luxury goods giant.