European Stocks Edge Higher
European stocks closed slightly higher on Wednesday to trim the two consecutive sessions of losses this week as markets positioned for the Federal Reserve’s rate decision after the closing bell.
The Eurozone’s Stoxx 50 rose 0.3% to close at 4,960, and the pan-European STOXX 600 inched 0.1% higher to stay at 514. The Fed is due to lower its funds rate by 25bps and FOMC members will pin their expectations on where borrowing costs will be in the future, giving the market hints on how risks between inflation and unemployment are balanced. In turn, the BoE is expected to hold its key rate unchanged.
ASML added 2.2% to extend its rebound, in line with volatility for major companies in the global chip sector. In turn, UniCredit also added more than 2% amid news that it raised its stake in German Commerzbank through derivatives. Outside the benchmark index, Renault added 5.6% on news that Nissan is exploring a merger with Honda.
Source: Trading Economics