European stocks mixed ahead of Fed decision
European stocks hovered around the flatline on Wednesday morning, as investors focused on an upcoming Fed decision.
The pan-European Stoxx 600 was flat with the different sectors moving in opposite directions. Autos were the top-losers in early deals, off by more than 1 percent. On Tuesday, President Donald Trump defended his administration’s stance on trade, telling international leaders that the States would no longer tolerate abuse when it comes to trade.
Energy stocks buoyed by Brent crude prices at four-year highs. London’s FTSE 100 was down 0.03 percent, Paris’ CAC 40 was up 0.09 percent and Frankfurt’s DAX was down 0.15 percent.
Shares in some airlines were down in early deals, with Easyjet down 1.4 percent and Air-FranceKLM off by nearly 2 percent. Comcast updated markets players on Wednesday, announcing that it has increased its stake in Sky to 36.95 percent. This is after winning a bidding war over the U.K. broadcaster.
Market players are waiting for news from the U.S. Federal Reserve. The central bank will see the second and final day of its September monetary policy meeting, with analysts expecting an announcement of a quarter point rate hike.
Meanwhile, Brexit continues to keep European markets busy. On Tuesday, U.K. Prime Minister Theresa May has said that it wouldn’t be in the national interest to put forward another general election during exit negotiations. This comes as May faces more and more pressure over the future of divorce negotiations between the European Union and the U.K.
Japan’s Nikkei rose for an eighth session in choppy trade on Wednesday as hopes for a U.S. rate hike lifted futures and largecap stocks such as Fast Retailing and SoftBank, offsetting weakness in high-yielders like automakers trading ex-dividend. The Nikkei share average gained 0.4 percent to 24,033.79, extending its rally to an eighth session and the highest closing level since Jan. 23.