European Stocks Set to Open Lower Ahead of Fed Decision

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FEDERAL RESERVE,MONETARY POLICY,STOCK MARKET

Investors are bracing for the Federal Reserve's latest monetary policy announcement, which is expected to impact global markets. The decision will also be scrutinized for clues on future rate adjustments and the outlook for inflation.

European stocks are expected to open lower Wednesday as investors await the latest monetary policy decision by the U.S. Federal Reserve. Investors will also be paying close attention to Fed policymakers' Summary of Economic Projections and Fed Chair Jerome Powell's press conference, seeking clues about what might happen in the months ahead. The central bank is widely expected to temper runaway expectations of more rate cuts in the approaching year, particularly as inflation remains stubborn.

Data releases on Wednesday include the latest U.K. inflation rate. The data comes ahead of the Bank of England's monetary policy meeting on Thursday, with markets so far pricing in only a slim chance of a final rate cut of the year. Inflation in the U.K. rose to 2.6% in the year to November, meeting expectations but further dampening hopes of a rate cut from the Bank of England on Thursday. Yields on the U.K.'s 10-year Gilt were little changed by 7:05 a.m. at 4.519%, while the British pound was down 0.07% against the U.S. dollar to trade at around $1.2700. Markets are now overwhelmingly expecting the Bank of England to hold its key interest rate at 4.75% when its Monetary Policy Committee meets for the final time this year, according to overnight index swap data. The British pound traded lower against the dollar and the euro on Wednesday morning, as investors awaited the U.K.'s latest inflation print and a policy update from the Bank of England. Sterling was around 0.1% lower against the euro, and 0.06% weaker against the greenback by 6:35 a.m. London time. Stock futures are little changed after Dow posts nine-day losing streak; traders await Fed decisio

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