European equity markets were set for a softer open on Wednesday, as investors awaited further clarity on the US–Iran peace agreement and stayed cautious ahead of the Federal Reserve’s policy decision. The interim deal, due to be signed in Switzerland on Friday, could unlock billions of dollars in frozen Iranian assets and allow Tehran to resume oil exports immediately.
The Federal Reserve is widely expected to keep interest rates on hold, with market participants scrutinizing the policy statement and updated economic projections for guidance on the future trajectory of monetary policy. In Europe, focus will also fall on UK inflation figures ahead of this week’s Bank of England meeting, where policymakers are likewise expected to leave rates unchanged. In premarket trading, futures tied to the Euro Stoxx 50 and Stoxx 600 were both down about 0.1%.
