FX.co ★ European Stocks Edge Lower Ahead of Fed Decision

European stocks concluded Tuesday's session with a slight downturn. The STOXX 50 dipped by 0.1%, while the broader STOXX 600 hovered close to its starting point, as investors adopted a cautious stance before the Federal Reserve's impending monetary policy announcement. The consensus among market participants is that the US central bank will introduce a 25 basis point interest rate reduction, though the outlook for 2026 remains ambiguous. Shares of EssilorLuxottica, the parent company of Ray-Ban, fell by 5.7% following Warby Parker's announcement of new AI-powered eyewear in partnership with Google, intensifying competition in the smartglasses sector. Elsewhere, Thyssenkrupp saw a 7% drop after predicting a potential €800 million loss by 2026. However, defense stocks experienced a boost amid Bloomberg's reports that German legislators are poised to authorize 29 military procurement deals worth a record €52 billion the following week. Consequently, Hensoldt's shares increased by 6.5%, Rheinmetall rose by 4.1%, Leonardo saw a 2.6% uplift, BAE Systems advanced by 2.3%, and Thales also climbed by 2.6%.