European shares ended flat on Wednesday, as investors adopted a cautious stance in advance of the US Federal Reserve’s interest rate decision, while also parsing a slate of corporate announcements.
The pan-European Stoxx 600 closed flat at 577.78, extending its pattern of trading in tight ranges during the past few sessions.
Major regional benchmarks were largely trading in the red, with ones in Germany and Spain down 0.5 per cent and 0.2 per cent respectively.
Market attention centred on the Federal Reserve’s rate decision later in the day, where the central bank is expected to trim interest rates by 25 basis points.
RM Block
However, comments from chairman Jerome Powell will be scrutinised for clues on how the bank will approach monetary policy next year amid sparse economic data and the US administration’s push for lower rates.
Dublin
Dublin’s Isex index was lower on Wednesday in sparse trading. Shares in Uniphar, the healthcare services group, were down 1.9 per cent at €3.58 while food company Glanbia fell 0.7 per cent to reach €14.61.
Ryanair continued its climb, reaching €28.20. The airline said this week it planned to cut one million seats and 20 routes from its Brussels 2026/27 winter schedule over Belgium’s decision to raise tax on air passenger tickets.
Europe
An index of automakers led losses, down 1.5 per cent, dragged lower by a 4.8 per cent drop in luxury carmaker Ferrari.
Industrial stocks that buoyed the market in recent sessions fell 0.35 per cent, with defence firms weighing. The European aerospace and defence index lost 0.8 per cent after gaining more than 2 per cent in the previous two sessions.
Vinci lost 3.1 per cent after BNP Paribas downgraded the French infrastructure and concessions group to “neutral” from “outperform”, with the brokerage forecasting a muted 2026 for European transport and infrastructure firms.
Construction and materials index fell 0.8 per cent.
Aegon was the worst-performing stock for the day, losing over 10 per cent after the insurer said it would move its legal domicile and head office to the US from the Netherlands.
London
Britain’s blue-chip FTSE 100 edged up on Wednesday, supported by gains in banking stocks as investors awaited the US Federal Reserve’s interest rate decision.
The FTSE 100 closed up 0.1 per cent, while the domestically focused FTSE 250 index dipped 0.4 per cent to a two-week low.
Lenders HSBC and Standard Chartered rose 3.2 per cent and 2.2 per cent, respectively, following bullish recommendations from BofA Global Research.
The FTSE 350 banks index rose 1.8 per cent and led gains among the sectors.
Traders are also looking ahead to UK GDP data for October on Friday. Signs of easing inflation and a weakening labour market have pushed traders to price in a 25 bps rate cut from the Bank of England next week, with further cuts seen next year.
Among other stocks, Pearson climbed 2 per cent after JP Morgan named the education company one of its top picks in the media sector. FirstGroup added 5 per cent after the transport operator was named the preferred bidder for London’s Overground suburban rail network in a contract worth about £3 billion (€3.4 billion). Berkeley rose 3.2 per cent after the home builder maintained its annual guidance and voiced confidence in the long-term outlook for London, its key market.
New York
Stocks were mixed in early evening trading, with the Dow Jones Industrial Average and S&P 500 recording modest gains, while the Nasdaq Composite in the red, in advance of an expected rate cut by the Federal Reserve.
Traders are cautious, with Fed Chair Jerome Powell expected to strike a hawkish tone over future rate cuts as he presides over an increasingly divided US central bank that is weighing high inflation against a weakening labor market.
Fed funds futures traders are pricing in 91% odds of a rate cut, and traders will focus on how many officials dissent to the move. Policymakers are also due to update their economic and interest rate projections for the coming quarters.
Industrials is the best performing sector in advance of the decision, while tech is the laggard. The US dollar, gold, crude oil and bitcoin are all lower on the day, while benchmark 10-year Treasury yields have eased to 4.17 per cent – Additional reporting by Reuters
