European equity markets opened higher on Wednesday as investors weighed steady U.K. inflation data and awaited the outcome of the U.S. Federal Reserve’s policy meeting. At 07:05 GMT, Germany’s DAX climbed 0.5%, France’s CAC 40 advanced 0.3%, and London’s FTSE 100 edged up 0.1%.
The Federal Reserve is expected to trim its benchmark rate by 25 basis points, lowering it to a range of 4.00%–4.25%. Markets are already pricing in nearly 150 basis points of further easing through 2025, which could sustain risk appetite globally.
“Global equity markets continue to edge higher on resilient business optimism and the prospect of lower borrowing costs,” analysts at ING noted. The Fed will also publish its quarterly Summary of Economic Projections, offering clues on long-term policy direction.
Inflation Data Shapes Europe Outlook
Investors are also tracking regional inflation figures. The eurozone’s consumer price index (CPI) is expected to rise 2.1% in August, slightly above July’s 2.0% but aligned with the European Central Bank’s target.
The ECB left rates unchanged last week, while signaling flexibility amid uncertainty around trade flows, energy costs, and foreign exchange movements.
In the U.K., annual inflation held at 3.8% in August, nearly double the Bank of England’s 2% target. The reading strengthens expectations that the BoE will keep policy steady in its upcoming decision.
Key inflation highlights:
- Eurozone CPI forecast at 2.1% year-on-year.
- U.K. CPI steady at 3.8%, pressuring households.
- ECB cautious on growth and energy volatility.
Corporate Moves and Oil Market Shifts
Beyond monetary policy, corporate developments added to market headlines. GSK pledged a $30 billion investment in U.S. research, manufacturing, and digital innovation over the next five years, including $1.2 billion dedicated to advanced biopharma facilities. Meanwhile, Nestlé accelerated leadership changes as Chairman Paul Bulcke announced he would step down earlier than planned, handing the role to former Inditex CEO Pablo Isla.
In commodities, oil prices softened after hitting two-week highs on Tuesday. At 03:05 ET, Brent futures slipped 0.2% to $68.33 a barrel, while U.S. West Texas Intermediate crude dropped 0.2% to $64.39. Concerns over potential Russian supply disruptions and a 3.2 million-barrel U.S. inventory draw provided underlying support.
With central banks, inflation data, and geopolitical risks all in focus, European equities remain poised for heightened volatility in the weeks ahead.
