European Markets Maintain Stability as Fed Rate Decision Approaches

European stocks remained stable on Wednesday as the recent surge in crude oil prices cooled, and bond yields declined from recent peaks ahead of the Federal Reserve’s interest-rate decision scheduled for later in the day.

The British pound fell against major currencies following official data indicating that U.K. consumer price inflation climbed to a five-month high in August, primarily driven by increased motor fuel prices.

Inflation rose to 3.1 percent from 2.9 percent in July, in line with expectations.

Core inflation, which excludes energy, food, alcohol, and tobacco, stayed at 2.6 percent in August.

The pan-European STOXX 600 index increased by 0.3 percent to 635.82, recovering from a 0.3 percent decline on Tuesday.

Germany’s DAX index slipped slightly, while France’s CAC 40 showed minimal change with a positive trend, and the U.K.’s FTSE 100 gained 0.3 percent.

German wind turbine manufacturer Nordex saw a 1 percent increase after securing a 91 MW order from TEUT Energieprojekte GmbH.

Vallourec, a company specializing in tubular solutions for the oil, gas, and new energy sectors, jumped 4.6 percent in Paris after winning a major contract from Subsea7 for an offshore project in Brazil.

British housebuilder Barratt Redrow surged 8.5 percent following the announcement of higher profits for fiscal 2026, primarily boosted by revenue growth.

WH Smith dropped 2.2 percent. The retailer stated that it anticipates annual pre-tax profit to be at the lower end of its guidance range.

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