On Wednesday, European stocks went up slightly, recovering from their losses in the previous session. This happened as investors were waiting for the US Federal Reserve’s decision on monetary policy later in the day.
The overall European STOXX 600 index rose by 0.1% to 551.56 points, after hitting a one-week low on Tuesday. Technology stocks led the gains, with shares of SAP and Prosus both increasing by about 2%.
Later, investors around the world will focus on the results of the Federal Reserve’s two-day meeting. Markets are largely expecting the Fed to cut interest rates by a quarter of a percent to address the weakening US job market. However, investors will be paying especially close attention to what Chairman Jerome Powell says about the future policy plans.
In other company news, PostNL’s shares rose by 7.5% after the company announced a new strategy, including dividing its Parcels business into two new segments, E-commerce and Platforms, starting in January 2026. Novo Nordisk’s shares also increased by 1.8% after the brokerage firm Berenberg upgraded its rating on the Danish drugmaker from “Hold” to “Buy.”
On the FX front, The euro dropped by 0.25% to 1.1838, after reaching a four-year high of 1.18785 on Tuesday.
The British pound fell by 0.13% to 1.3630, which is still close to its highest point in two and a half months, following British inflation data that met expectations. The U.S. dollar index, which compares the dollar to six other major currencies, was up 0.20% at 96.84, after hitting its lowest level since early July on Tuesday.
The index is down almost 11% this year, and investors are preparing for more losses after a recent pause. The Swiss franc eased by 0.22% to 0.7875 per US dollar, remaining near the decade-high it reached in the previous session. The Australian dollar hit an 11-month high and was last at 0.6674.
The Japanese yen strengthened to 146.22 per dollar, its strongest in a month. This happened ahead of the Bank of Japan’s policy meeting on Friday, where the central bank is expected to keep rates unchanged. The yen was last down 0.10% at 146.63.
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