European Markets Close Lower Ahead of Fed Rate Decision
European markets closed lower on Wednesday as investors considered key data from the region and awaited the U.S. Federal Reserve interest rate decision.
The pan-European Stoxx 600 index closed 0.49% lower, with regional bourses and sectors mostly pulling back. Utilities fell 0.78%, while food and beverage stocks shed 1%.
In Europe, U.K. inflation figures for August were published Wednesday, coming in at 2.2% according to data from the Office for National Statistics. That was unchanged from July and in line with expectations.
The data comes ahead of the Bank of England meeting and interest rate policy decision scheduled for Thursday. It is a busy week for central banks, with the Bank of Japan and the U.S. Federal Reserve also scheduled to meet.
The Fed is all but guaranteed to announce an interest rate cut on Wednesday, which would be its first since it started hiking rates in March 2022.
Traders are however split about the magnitude of the cut. Chances of a 50-basis-point reduction have been rising in recent days and last stood at 65% according to CME Group's FedWatch tool.
Source : CNBC
