Stoxx 600, FTSE, DAX, Fed decision

LONDON — European stock markets were mixed on Wednesday as global investors braced for the U.S. Federal Reserve’s interest rate decision.

Pan-European Stoxx 600 It remained flat shortly after the opening bell; Most major indices showed little sign of movement, while regional sectors were trading in mixed territory.

Delivery Hero Shares rose 6% after the company said it was evaluating its strategic options and focusing on delivering “financial improvements.” The German food delivery giant said in a letter to shareholders after European markets closed on Tuesday that it was considering several strategic changes, including partnerships and capital allocation measures for selected country operations.

Global markets are awaiting the results of the Fed’s last meeting of the year on Wednesday.

The central bank is expected to make its third quarter-point rate cut, with Fed Funds futures pointing to an 87.6% chance of a decline. CME’s FedWatch tool.

But views remain divided among members of the Federal Open Market Committee, which sets rates: Some favor cuts to prevent further labor market weakness, while others believe another cut could worsen inflation.

Investors are trying to gauge members’ sentiment from the post-meeting statement and Chairman Jerome Powell’s highly anticipated news conference Wednesday afternoon.

“Beyond the immediate policy decision, our U.S. economists also expect opposition from both hawkish and dovish sides,” Deutsche Bank’s Jim Reid said in a note Wednesday morning. he said. “So to get consensus behind a rate cut today, they anticipate that the statement and the press conference will signal that the hurdle for another rate cut in early 2026 is relatively high.”

CME’s FedWatch report shows that money markets are pricing in a 69.3% chance that the key interest rate will be in the range of 3.5% to 3.75% after the central bank’s January meeting; This situation will continue if the Fed cuts interest rates today, signaling expectations that interest rates will remain constant at the first meeting of 2026.

In early Wednesday trading, the Stoxx European Banks index rose 0.2%.

Sentiment in European markets will have taken a big hit this week after US President Donald Trump described the continent’s leaders as “weak”. In an interview with Politico It was published on Tuesday.

Trump has had an on-and-off relationship with European leaders, and appears to get along well with some, such as Britain’s Keir Starmer and Italian Prime Minister Giorgia Meloni, but not so well with others. In the interview, the president criticized a “decaying” Europe for failing to control immigration or take action against the Ukraine war.

“I think they don’t know what to do,” he said in the interview, adding: “Europe doesn’t know what to do.”

The comments will come as a harsh blow at a time when European allies are trying to ensure the continent’s voice is heard in negotiations over Ukrainian peace proposals. These follow Trump’s new national security strategy last week, which questioned whether European countries “can remain reliable allies”.

In corporate news, shareholders British American And Teck Resources approved the merger of the two companies, paving the way for creating a copper giant. Anglo American’s chief executive Duncan Wanblad said on Tuesday that the merger, which still needs regulatory approval, would be among the “top five global copper producers”.

“The proposed merger is expected to create the world’s leading copper company and offers a compelling multi-year growth story through synergies and low capex volume growth,” Deutsche Bank analysts wrote in a note published Tuesday, shortly before the results of shareholder votes were announced. he said.

Anglo American’s London-listed shares were last traded up around 1%.

CGT workers union at luxury giant company in France LVMH’Champagne units have called on workers to join the strike this Thursday in a bid to secure year-end bonuses. Paris-listed shares of LVMH, maker of Moet & Chandon and Veuve Cliquot champagnes, lost 0.3% in early trading.

— CNBC’s Pia Singh contributed to this market report.