European equities moved mostly sideways on Tuesday as investors looked ahead to the start of the U.S. Federal Reserve’s two-day policy meeting later in the session.
By 08:02 GMT, Germany’s DAX was up 0.2%, France’s CAC 40 gained 0.1%, while the UK’s FTSE 100 slipped 0.1%.
Fed meeting in focus
Federal Reserve policymakers convene later today, with markets broadly expecting an interest rate cut on Wednesday. Since the move is largely priced in, attention is turning to Chair Jerome Powell’s guidance on the pace of potential easing in 2026.
Current market pricing implies 77 basis points of cuts through the end of next year, suggesting two reductions after December remain anticipated.
Analysts at Vital Knowledge said: “The Fed is widely expected to cut rates on Wednesday, but the forward guidance that day could pivot in a hawkish direction. In aggregate, monetary policy globally is shifting out of an easing phase with the Fed set to go on pause for (at least) the first few meetings of 2026.”
The decision will help set the tone for upcoming central bank announcements in Europe.
• The Swiss National Bank delivers its update Thursday.
• The Bank of England, European Central Bank, Norges Bank, and Riksbank follow next week.
Earlier Tuesday, the Reserve Bank of Australia held rates steady but issued a hawkish warning amid renewed domestic inflation pressures.
German exports edge up
Germany’s exports rose 0.1% in October from the previous month, according to federal statistics office data—defying expectations for a 0.5% decline.
Corporate highlights
Thyssenkrupp (TG:TKA) returned to profit in its fourth quarter after reporting a loss a year earlier.
However, the group still expects lower sales and a net loss in 2026, citing uncertainty around the global economy: “the future development of the global economy is still uncertain.”
Novartis (BIT:1NOVN) entered a partnership with Relation Therapeutics, a deal worth up to $1.7 billion, aimed at accelerating drug-target discovery for allergic diseases.
Renault (EU:RNO) formed a strategic alliance with Ford (NYSE:F) to develop affordable electric vehicles, with production expected to begin in 2028.
Oil Prices Ease
Crude prices extended their decline on Tuesday as traders monitored diplomatic efforts to end the war in Ukraine.
- Brent crude fell 0.1% to $62.44 per barrel
- WTI slipped 0.1% to $58.81 per barrel
Both benchmarks lost about 2% on Monday after Iraq restored output at the West Qurna-2 field, a key source of national exports.
Ukraine, meanwhile, signaled it will deliver a revised peace proposal to the U.S. following talks in London between President Volodymyr Zelenskiy and leaders of France, Germany, and the UK. Any progress toward a negotiated resolution could reduce some of the geopolitical risk premium currently baked into oil prices.
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