Traders work, as a screen broadcasts a news conference by U.S. Federal Reserve Chair Jerome Powell following the Fed rate announcement, on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., Sept. 17, 2025.
Brendan McDermid | Reuters
LONDON — European stocks are expected to open in negative territory on Wednesday as investors await the conclusion of the U.S. Federal Reserve’s meeting.
The U.K.’s FTSE index is seen opening slightly below the flatline, Germany’s DAX 0.4% lower, France’s CAC 40 down 0.16% and Italy’s FTSE MIB 0.12% lower, according to data from IG.
The big event for markets is the Fed’s interest rate cut today with a quarter-point trim widely seen as a done deal by traders. If the Federal Open Market Committee acts as expected, it will bring the federal funds rate to a range between 3.75%-4.00%.
What’s less certain is whether Chair Jerome Powell will strike a dovish tone in his post-meeting comments.
Following the cut this week, 84% of respondents see another reduction in December, and 54% see a third in January, according to the October CNBC Fed Survey. A total of 100 basis points of rate cuts are forecast this year and next, bringing the fed funds rate down to 3.2% by the end of 2026.
Earnings are also dominating market attention this week with Alphabet, Meta Platforms and Microsoft set to report after the U.S. close on Wednesday. Apple and Amazon post results on Thursday.
Trade tensions between the U.S. and China appear to be abating ahead of President Donald Trump’s meeting with Chinese President Xi Jinping on Thursday. Trump said Wednesday that he expects to lower fentanyl-linked tariffs on China ahead of the meeting.
It’s a busy day for earnings in Europe on Thursday with Airbus, UBS, Banco Santander, Equinor, Deutsche Bank, BASF, Adidas, GSK and Endesa set to report. Data releases include Spanish GDP.
— CNBC’s Steve Liesman and Sarah Min contributed to this market report.
