FX.co ★ European Stocks Flat as Investors Eye Fed

On Wednesday, the STOXX 50 experienced a slight shift, settling near the flat line at 5,370 points, while the wider STOXX 600 remained largely unchanged at 551. This was due to investors exercising caution ahead of the US Federal Reserve's upcoming policy announcement. The market anticipates that the Fed will issue its first rate cut in nine months, reducing rates by 25 basis points to the lowest level since late 2022, prompted by a cooling labor market. Additionally, markets are keenly watching the Fed's quarterly "dot plot" projections for insights into future policy directions. In economic updates, UK inflation remained steady at 3.8% in August, consistent with July figures and close to January 2024 levels. This data comes just before the Bank of England's anticipated decision to maintain its current interest rates tomorrow. In the corporate realm, PostNL saw its shares climb over 1.5% following the announcement of a new strategy during its Capital Markets Day, which includes plans to divide its Parcels business into two distinct divisions. Additionally, Novo Nordisk experienced a 1.6% increase after Berenberg upgraded the Danish pharmaceutical company from a "Hold" to a "Buy" rating.