European stocks traded mostly flat on Wednesday as investors remained cautious ahead of the U.S. Federal Reserve’s interest rate decision later in the day.
At 03:05 ET (08:05 GMT), Germany’s DAX slipped 0.1%, France’s CAC 40 fell 0.1%, while the U.K.’s FTSE 100 edged higher by 0.1%.
Fed Decision Takes Center Stage
Global markets are focused on the outcome of the Fed’s final meeting of the year. The central bank is widely expected to cut interest rates by 25 basis points.
The Fed last lowered rates on October 29, bringing its target range to 3.75%–4.00%. However, the upcoming decision could face resistance, as five of the twelve voting members of the Federal Open Market Committee (FOMC) have expressed doubts about further easing.
Adding complexity, a prolonged U.S. government shutdown delayed key economic data—including November’s jobs report—which will not be released until after the Fed meeting on December 16.
Elsewhere, the Bank of Canada is expected to keep its key interest rate unchanged at 2.25%, with many economists forecasting no further cuts until at least 2027.
Tui Leads European Corporate Headlines
In corporate news, Tui (ETR:TUI1n) posted record adjusted earnings for fiscal 2025, beating expectations and rising 12.6% from last year. The company also announced its first dividend payout.
Norwegian financial group Storebrand (OL:STB) raised its 2028 result target and increased its return-on-equity goal from 14% to 17%.
Sweden’s Husqvarna (ST:HUSQa) updated its long-term financial outlook and announced a major cost-cutting initiative ahead of its capital markets day.
Investors are also watching for Oracle’s (NYSE:ORCL) quarterly results, due after Wall Street’s close. Analysts at Vital Knowledge expect strong bookings but note cash flow pressure from heavy spending.
Oil Prices Edge Higher After API Data
Oil prices ticked up Wednesday as traders evaluated a sharp drop in U.S. crude inventories, developments in Ukraine peace talks, and the anticipated Fed rate cut.
Brent crude rose 0.2% to $62.05, while WTI gained 0.2% to $58.38 per barrel.
Despite the uptick, both benchmarks are still down nearly 3% over the past two sessions amid concerns that a potential Ukraine–Russia peace deal could lift sanctions on Russian firms and release more oil supply.
However, API data released Tuesday showed U.S. crude inventories fell by 4.8 million barrels in the week ending December 5—well above expectations for a 1.7 million-barrel draw. The data pointed to tighter supply or stronger demand, offering short-term support for crude prices, alongside the anticipated Fed rate cut.
