A market stall in Kingston, London, 2024.
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LONDON – European markets ended lower on Wednesday as investors considered key data from the region and awaited a Federal Reserve interest rate decision.
The pan-European Stoxx 600 index closed down 0.49%, with most regional stock markets and sectors retreating. Utilities stocks fell 0.78% and food and beverage stocks fell 1%.
In Europe, data from the British Office for National Statistics showed that British August inflation data was released on Wednesday and was 2.2%. This is unchanged from July and in line with expectations.
The data comes ahead of a Bank of England meeting and interest rate policy decision scheduled for Thursday. It’s a busy week for central banks, with the Bank of Japan and the Federal Reserve also scheduled to hold meetings.
The Federal Reserve is almost certain to announce a rate cut on Wednesday, which would be the first rate cut since it began raising rates in March 2022.
However, traders were divided on the extent of the price reduction. The odds of a 50 basis point rate cut have been rising in recent days and were last at 65%, according to CME Group’s FedWatch tool.
U.S. stocks were little changed ahead of the Fed’s decision at 7pm London time (2pm ET).
Asia-Pacific markets were mixed on Wednesday.
