"European equities slipped on Wednesday, with investors bracing for a potentially pivotal Federal Reserve meeting later in the day. The DAX retreated after four consecutive gains. Traders could opt to lock in profits and reduce exposure ahead of what could be a market-defining moment. While the Fed is widely expected to deliver a 25 bps rate cut, the real focus is on the updated economic projections and Powell's tone."
"A dovish pivot could trigger a rally across global equities and drive prices above the latest highs. However, any signs of caution risk reigniting volatility and could fuel some corrections. European stocks could also see some pressure over the medium to long term as the ECB could keep its interest rate unchanged, and the rate outlook could be stable to potentially bullish, contrary to the direction in the US."
European equities fell as investors awaited a potentially pivotal Federal Reserve meeting. The DAX retreated after four consecutive gains as traders weighed profit-taking and reduced exposure ahead of the event. The Fed is widely expected to deliver a 25 bps rate cut, while attention centers on updated economic projections and Powell's tone. A dovish pivot could lift global equities and push prices above recent highs, whereas cautious signals could reignite volatility and prompt corrections. ECB indecision could place medium-term pressure on European stocks. German industrial production rose 1.8% in October, but automotive output fell 1.3%, risking renewed pressure if divergence persists.
Read at London Business News | Londonlovesbusiness.com
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